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

  • Property Yields

    Struggling to find high yielding properties

    I am going to be a new landlord hopefully purchasing a property in Liverpool or Plymouth since both seem to be higher yield areas. However after hours of looking on right move and phoning around I am finding it a struggle to spot houses with a higher yield of 7%. After doing plenty of research on youtube I am preferably searching for plus 10% yield on a vanilla buy to let with a price of £80-120,000.

    Does anybody know how to find good high yield deals please?

    0
    0

    7% yield on an £80k property is £5.6k pa, or £466pm gross.

    Are you looking at this 7% yield as being gross or net of costs?

    Does £466pm net/gross sound exciting if the property is many miles/hours away? How will it be managed/maintained?

    How many times do you want to repeat this type of process?

    0
    0

    7% gross is the highest I've found. I'm aiming for 10% gross. The Liverpool area is over 300 miles away from me so quite a distance. Is this wise to invest in a property that is far away?

    Samuel Leeds from youtube says it doesn't matter. I'm hoping to have it fully managed by a letting agent. Hopefully buy more properties under a Ltd co when I have the resources.

    Thanks for your help.

    0
    0

    I seem to remember Samuel from Leeds (;->) doesn't get much praise on here! Do a seach through and you shall find:
    https://www.propertytribes.com/samuel-le...86-46.html

    A very wise lady on here once said "invest as locally as you can, as you won't always be young"...

    £466pm gross over 300 miles away sounds like a millstone to me.

    2
    0

    Investing in cheap locations may mean a higher proportion of benefit tenants - and that may mean disaster when HB is paid direct to tenant rather than landlord.

    The roll out of UC is a disaster with many people waiting weeks/months for first benefit payment - and any change in circumstance can mean cessation of benefits whilst things are rejigged - and once claimants end up in debt due to essential borrowing (food/rent/utilities) when benefits are late it can easily be a downward spiral

    ONS data flags that when you strip out London wages from UK total - the average gross individual wage outside London is just £17550.

    The lower the household income - the greater likelihood that the family is in the 51% of households who are net takers from tax/benefit system.

    Easy enough to check rent yields on Rightmove - just divide annual gross rent by property value - and adjust for maybe 15/20% less if an agent is fully managing the let.

    0
    0

    You are right it is very had to find high yield property today, margin has gone down as there are more cost and trouble now than before.

    It is not recommended to buy anything far away as it is difficult to get to and you cannot  relay on someone else to look after your investment. Many will be happy to have your money Smile

    0
    0

    Thank you.

    Over the course of a year what would I need to show up for at the property if I have full management through an agent. I'm under the impression that buy to lets run themselves.

    0
    0

     I'm under the impression that buy to lets run themselves.

    Where did you get that impression?!  You will be running a business where you have to adhere to over 160 government statutes and regulations in order to be compliant - not to mention that no business runs itself.

    I think you need to think again and do some more research on your responsibilities as a landlord!

    2
    0

    No a property doesn’t run themselves. What do you do it there is a problem with the bathroom tap, do you check it yourself first or do you pay the plumber to get a new tap? It is a matter between £5 and £75?

    Some letting agents are good, but many are bad. My last letting agent couldn’t even bother sending out a new tenant contact after the old expired and they would have been paid for it even Smile

    plymouth is lovely but also have some bad areas where property prices are cheaper, but I would not advise on them. You need to drive around and get to know the area before buying a place. 

    0
    0

    Hi Davy and welcome.

    Plymouth and Liverpool - well you couldn't really get two more opposite markets!  What has attracted you to these areas?

    The further away a property is from you, the more the risks are amplified imho as you are relying on third parties to supply reputable services.

    You should be able to find 10% gross, but the property will likely have an issue such as being un-mortgageable or non-standard in some way.  Also very low value properties bought for cash can achieve higher yields.  However, these type of properties may only let to tenants in receipt of housing benefit/UC, so again the risk is amplified.

    Have you tried Property Tribes RepoList? 

    There is a helpful resource here:

    Top 10 Property Tribes resources to learn how to find property deals 

    Hope that helps for starters?

    0
    0

    Hi Vanessa,

    I'm a fan of yours I've watched many of your videos on youtube. 

    I'm 28 years old and just trying to set myself up for the future. I currently live in Cornwall and London and both I feel are too expensive for me to invest in. Plymouth is just 70 miles from my location Cornwall and with lower prices as well as slightly higher yields I feel happier about investing in. I came up with the idea of Liverpool due to seeing it in the media as a high yield area. I will need a mortgage on the property so £80,000 is my minimum price. And preferably starting with a vanilla buy to let for my first few houses which I expect you'd recommend.

    Do you know the characteristics of the Plymouth buy to let market as this is my preferred area?

    0
    0