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So having listened to various podcasts (TPP in particular) I had my heart set on investing in Liverpool. Particularly due to Brexit blues affecting London prices and the North West prices looking to grow.
A week ago I went to Liverpool to look at a few HMO properties in the Kensington area, Prices ranged from £240k - £300k. I was torn between 2 properties and when it came time to get my mortgage in principle, I was pretty much told I was not able to get one due to not owning any properties or having any past landlord experience. Bit of a shame as cash flow wise everything seemed in the positive and the property was due to be managed by a letting agency.
As such, wondering what would be my best option from here?
I'm wondering if I should go back to Liverpool and look at other areas (L15?) where I can get a good yield and have a family live there then look at HMOs later? Or would it be better to look at London properties (so I can self manage) that are known for a decent yield (E6?) Please feel free to point me to other potential areas I might be missing
Any ideas, advice would be super appreciated!
P.S. Joined the forum just now so please be gentle
Have a look at this older thread. It's has some good feedback and comments which are still relevant and applies to you based on what you've asked.
Disclaimer: I have no legal expertise nor am I a qualified advisor on any subject. A humble landlord using an open forum to exchange ideas and experiences.
Thanks for the response, I'm thinking the safest route would be to pick up another property to get on the ladder before I attempt to look at HMOs in general.
Any ideas on what would be a good first step in terms of area and property type? I've mentioned a few L15/E6 which is north and south. But wondering what most people would opt for in my position.
You need to do your own research. If there is an opportunity then people might be reluctant to give the answer to you and bring comptetion for themselves.
Also if you do your own analysis then you don't end up making a blind decision. Best advice is to do your own thing and find your own path - you'll learn plenty on the way there.
Also read up on a few articles on this website about whether becoming a property investor is the answer for you. Nowadays its not as lucarative as it used to be and there might be alternate investment opportunities available. If you have a financial advisor friend then you could ask them for some free suggestions/tips.
Thanks Saagar, really appreciate the honesty and advice my friend
Fair enough, although Kensington is known for HMOs due to the strong student demand. I heard families tend to avoid that area.
In an open market society, I don't think banning should ever be considered a solution. Regulation should be and is. Recent laws such as Article 4 have been introduce to protect area from the scenario you've described. If the current regulation isn't fit for purpose then you bring changes through the official channels.
It's there because the market demands it. People for example doing contract jobs and need a place temporarily, Students who want to keep costs down that pay high B&B or private household rents for a whole property when they're only using one room; to name couple & there are many other scenarios.
100% agreed, there are a lot of hoops to jump through to get a property licensed. So as long as landlords are doing their bit to ensure standards are met, this should never be a problem.
Where do you think young people will live post your ban?
Liverpool is flooded with larger HMOS particularly Kensington.
It is crucial to speak to a well established local company preferably one who doesn't have HMOS that they are developing for sale. You're actually far better off buying and developing yourself.L15 has stable and steady demand. I'm happy to chat further details in my signature. I've been managing for 14 years in Liverpool.