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  • Buy-to-Let

    Investing in Peterlee

    Hi all,

    I am a long term lurker of PT and am looking for advice please.

    Does anyone  invest in Peterlee in Durham?

    Great yields at 10%,  but did you have a great rental demand/any problems?

    Any feedback would be much appreciated,

    Thank you

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    Be careful what you buy in that area. Cheap makes it more likely you will have tenant problems, and it's a long term depressed area.
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    Hi Malcom,  thanks for that.

    Thats really the reason for my post.  Was carried away by the yield, but it does seem  very depressed/deprived  and am now having second thoughts.

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    Always go to look at any property you plan to buy and it's surrounding area. Could you relet quickly when it becomes vacant? Would it be vandalised when empty? 
    Yes a high yield may be possible but that will only be achieved with a tenant that pays, doesn't sublet, abuse the property etc.
    In some areas the locals don't like rich private landlords full stop (regardless of whether you are rich or not). As not many work they all know very quickly when properties become vacant and can break in to steal the boiler and cooper pipes (they never bother to turn off the stop tap first!) so major water damage to property and neighbors houses with insurance claims. Councils use plastic pipes and demountable boilers they fit on the day the tenant moves in plus temporary sensor alarms that alert 24hr patrols for the worst areas. I would advise unless you are already a local landlord and know the area well bun in a better area which will not give you any hastle. 
    I am aware of cases where fake landlords break into empty properties and rent to an unsuspecting tenant and in some areas where landlord bypass the electric meter as part of the rent creating a fire risk to that property and it's neighbours, rent to illegals, canibis farms, rent to drug dealers, then when they get busted, rent to another etc. all of which cause problems to other people in the neighborhood (your tenant?) and mean everyone wants to leave as quickly as possible which is great for ensuring you will always be able to cover your mortgage!
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    "Councils use plastic pipes and demountable boilers they fit on the day the tenant moves in plus temporary sensor alarms that alert 24hr patrols for the worst areas."

    Wow!  Can't believe  that councils have have to do that!!  It is unbelievable,  the lengths that some people will go to for money.

    I definitely won't be investing until I know of an area that  is safe,  and  has a good rental demand for working families  in a decent area.

    Really not worth the risk.

    Back to the drawing board..

    Thanks for the great advice, certainly food for thought! 

    I will be heeding your wise  words.. : )

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    It's very common for social housing. If that's necessary for council houses which benefit local residents then consider what they think of private landlords ripping off working people, Londoners etc. etc. Not every range rover in these areas with blacked out windows is a drug dealer, some are landlords with heavies to ensure they get paid rent.
    As always buyer beware and spend time going to look round areas at different times of the day and night and don't just buy based on a few estate agents photos or auction brochure. A question I always ask myself, would I like to live their, would my car be safe, would I be happy to let my children play on the street and the local park? If not then no one else would want to either so you will only get the tenants with no other choice with all manner of social issues.
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    Thats a real eye opener, landlords needing a heavy mop to ensure they get their rent!  Pretty shocking.

    I found that was the difficulty speaking to agents,  you not always getting the true picture, and sometimes its hard to read between the lines,

    Great advice to go back at different times of the day and night and get a real sense of the road/area, 

    I agreee about asking yourself if you would want to live there, and would your car be safe.

    That is how I feel, if you provide a decent house in a decent  area families tend to settle and stay long term. It's just finding the right purchase price and rent to make it work and be profitable.

    Would prefer to take a hit on yield though definitely to achieve that.  

    Want to be able to sleep at night and have reliable happy tenants!


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    hi im in this kind of area if you tell me where you are thinking I can give you an idea but places like horden etc avoid like plague

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    Hi,

    Thanks for responding.  

    Well, I was Interested in Peterlee because of the strong yields,  but then started to worry when I looked more in to it.

    I was advised against  Horden, and as you say,  also Easington.

    I was told to stay in Peterlee itself,  as the yield is better with working tenants.

    However, after further research I thought that too looked very depressed, and could have potential problems,  especially after reading the above!!

    I have been told  by an agent there  are good villages closer to  Durham itself with good transport links in to Durham

    That appeals to me more, as there seem to be good quality ex council houses that can provide good quality family homes .

    That is what I am trying to achieve, good long term, happy tenants in decent houses.

    From what I have seen so far, the yields don't seem to be so good there , so it would be great if you recommend an area that works well.

    Thanks,

    Louise

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    Hi are you local to Peterlee, sure there are very goo areas for good yields but as dl has sais its a street by street thing. I know the area not well enough to buy though as one street could be great next one a nightmare and unless you know you will get burned. Went to auction other week met a bloke who bought 7 in horden type areas all for about 20/25k each for an invester down country. Would love to know how that went im guessing not well at all

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    Hi again,

    Thanks,  no I am not local  to Peterlee,  so thanks for the warning, I am going to steer clear!

    I know about the risks associated with those 20k type properties and wouldn't go near them,  but even so, as you have said you really need to know what you are doing.

    No point for me, just not worth getting burned.  Don't have money to waste!

    Thanks once again, appreciate it.

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