X

Sign Up

or

By signing up I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google

or


By signing up, I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Log In

or


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.


Already a PT member? Log In

Don't have an account? Sign Up

  • Buy-to-Let

    Is Middlesbrough a good bet for buy-to-let?

    Hi all,

    Just looking to start a discussion on buy-to-let opportunities in Middlesbrough.

    I wouldn't mind hearing the thoughts of people in the sector with more experience than myself. I'm looking to get into buy-to-let for the first time and my main criteria are high yields, low entry price and demand in the rental sector. 

    Having done a bit of research I've found that Middlesbrough has amongst the highest rental yields and lowest house prices in the country yet I've not heard it talked about much online as a good place for BTL.

    You will often hear cities like Liverpool spoken of as a good city to look at with it's strong economy and good yields. TS1 and TS2 have amongst the best yields in the country and you can pickup a good 3 bedroom property for £70000 near enough in the centre of Middlesbrough. It is a university town with some significant expansion to the university planned which can only be a good thing.

    Not being a veteran of BTL I would be interested to hear people's thoughts on this. Is it just that poor old Middlesbrough isn't as sexy as other cities in the UK so gets overlooked or are there nuances which I'm missing? Or maybe it's just the best kept secret in BTL?

    Any thoughts would be most appreciated.

    Thanks

    0
    0

    Interesting post. I live 9 miles away and did a property up for a family so their kids could use as a base while at college. It is a rough as....... I'm also trying to get into property rental and would not have thought of the Boro.

    I would worry that the cost of putting right the property after tenants move on could be prohibitive. But it could also be my aversion to their football club ?

    0
    0

    Hi Jon,

    Welcome to the tribe.

    Many newbies are seduced by the promise of high yields, low entry price, and rental demand.

    Unfortunately, these types of areas are cheap for a reason, and the reason is not always good.  You may find your tenants to be largely in receipt of housing benefits, and these type of tenants can be more troublesome and are really the domain of experienced landlords.  These areas can also be poor with associated social problems.

    If you put "Middlesbrough" into the search engine, we have a few discussions that may shed some light.

    If you don't live in the area and know it like the back of your hand, then my answer to your question would be a definite "No".

    See the below threads for further insights:

    Why higher value properties are better

    The Holy Grail of property investment 

    I hope you find the above helpful for starters?

    0
    0

    I am a NE landlord and I would advise you to move with great caution

    you need to know your streets in depth

    I have homes in one long street I would buy only in two points of the street and no more

    you will get ripped off if you don’t know the area

    I have seen it happen and happen again when a stranger buys in the north

    there are places to buy and places not to buy

    if you don’t know the area stay away

    1
    0

    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    Remember property journey or business does not work without good tenants. Don't even start to talk about purchase price, cost, portfolio modelling or yield..... If you can't get good tenants.

    1
    0

    "Don't even start to talk about purchase price, cost, portfolio modelling or yield..... If you can't get good tenants."

    This is hardly ever mentioned by the supposed gurus. All they do is focus on yield and buy price (the easy stuff that is easy to talk about and not seen as a negative), never about who will actually be renting your property. Reason of that is they only care about the property deal for the most part, not what happens afterwards.

    Anybody can go and buy a £50k property, or a £40k property, or a £400k property - it doesn't take much brain power.

    It is not often the property that is the problem, but much more likely to be the person(s) living there.

    0
    0

    I spent a lot of time looking at that area and the great yields  North Ormsby came up as the cheapest place in England on something I read. In the end my plan fell apart as I discovered on Together lend on properties under fifty thousand. I wanted to buy eight and didn't want to use my money buying two outright.

    0
    0

    I own a number of properties in and around Teesside, predominently Stockton based but a few in Middlesbrough.

    To echo a previous poster, you really need to know your onions. There are some areas advertised as “great deals” I wouldn’t even walk down at night, having grown up here. From having residential stuff at all ends of the market, for my money the best bang for your buck is the £50k ish + light refurb market which will gross 10-12% ish. Much below this and it becomes very management intensive, with a bigger split between your gross and nett and also a potential overreliance on an agent and their knowledge of the ever changing LHA/UC regulations. Too far above this and the yield obviously tends to drop.

    (*Moderator note: Content removed*)

    Cheers,

    Matt

    0
    0

    Some very good points in this thread. With buying in any area that you are unsure of, always research the areas reputation not just figures. As stated above, good tenants are also key to investment.

    0
    0

    Transparency notice: OneandOnlyPro is a commercial partner of Property Tribes.


    This is all good food for thought. I guess the main points to take from this are that you must always know the local area and that if it it looks too good to be true then it probably is. It's about knowing which streets in an area will attract the right calibre of tenants and being able to identify which properties offer good value for the area they're in. I'm still pretty sure there must be bargains in these kinds of areas if you're savvy. But caution and research is paramount I think. It would be interesting to find out what people think about how open local estate agents are when discussing the viability of properties. I imagine the fact they have a vested interested would mean that they are probably not the best source of info on things like past tenants in a property or of the quality of the area of a property?

    0
    0

    Careful with those estate agents as they'll say anything to get a sale!

    0
    0