Browse All Tribes or choose a Tribe below:
By signing up I agree to Property Tribes Terms and Conditions
Already a PT member? Log In
Sign Up With Facebook, Twitter, or Google
By signing up, I agree to Property Tribes Terms and Conditions
Already a PT member? Log In
Don't have an account? Sign Up
To reset your password just enter the email address you registered with and we'll send you a link to access a new password.
Out of interest, do you mind sharing a typical property in your area that you deem to be a good investment?
To keep things simple, just a typical house price and typical rent.
I would buy a an Ex Council House three Bed
Pay around 80k 25% deposit plus costs
Rent around £595
They are getting hard to find now But If I dont get 8% i wont buy
since 2007 they have been my bread and butter
Get the right price and its a good investment and families stay long term very little turn over (Voids )
The problem I have at present is the prices are rising and they are now topping over 100K and more in the area I buy in
as soon as I buy them I have a customer in within a short period
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.
Wow that is a very good deal. That would be very hard to find around my area. So based on an interest-only mortgage of £250/month at 5% interest rate like you say above, you will be taking home £345/month which is impressive. A few of those and yes I can see how those investments are better than the ones you’ll find in the South. You are less exposed to external factors and so your investment is safer. I fully appreciate and understand this. If I was you, I too would place an importance on yield and have a minimum threshold. But in London and the South East in general, we simply can’t invest that way. If you advised us to look for 8% minimum yield, we would never invest! The yields won’t be as impressive as they are in the North so we work with different metrics and fortunately for us we have capital appreciation on our side.
In the North we have two bites of the cherry
I have made quite a lot of money in capital growth
the example I have show purchsed below 80k as I have done a lot of times is a capital growth if properties I like are selling for over 100K
The second bite of the cherry is with a good yeild a landlord can afford to either set the Cash aside or go capital and repayment
I chosse Capital and repayment just to be belt and braces
so If I purchased at say 75k with a 75% Mortgage of around £56000 and pay it down over 10 years the mortgage would reduce by a third
ie £37500 and with a modest growth rate the property will fetch over 100k plus
so I end up with a lot of equity and a very low LTV and as the mortgage decreases lenders give me better rates
The North and the South are very different animals
an investor needs to know there weakness and there strengths and than you can make a profit
The example I used at the beginning proves I got it wrong I paid too much for the Flat at 75K I should have paid no more then 70k
but we live and learn
"The North and the South are very different animals
an investor needs to know there weakness and there strengths and than you can make a profit"
- Totally agree with this.
It is possible to have both in the South also (yield and appreciation) however I find if one increases, the other decreases, it's impossible to have both consistently increasing.
I bought a 3 bed in 2011 for £170k.Rent 1100/month.Gross yield: 7.8% (Almost your 8% criteria)
Fast forward to now, 8 years later, that same property is worth £400k, a £230k increase!The rent is now £1400. The gross yield is now only 4.2%
So as you can see, I have benefited from massive growth, increased rents yet my yield has decreased. This is the reason my properties have a low yield today. They were good when I bought but eventually eroded by capital growth. If we didn't have capital growth, my yields would still be strong. I know which one I'd rather have!
"In the North we have two bites of the cherry
I have made quite a lot of money in capital growth"Really DL? In many threads you've stated that since 2008 many properties in your locale aren't even back to their 2008 value yet?
Which is it to be?!
correct property purcjased from 2005 to 2007 has not recovered
But If you had purchased after 2007 to 2015 at a good price you would have made money
Purchase price in 2008 65k 3 bed house now worth around 100k and maybe more
I doubled my Business with this sort of deal 2007 to 2015 was a golden time to buy
But IF I had purchased the same property in 2005 to 2007 I would have paid around 120k for the very same house so they have yet to recover the value paid
it all depends when you purchased and the price you paid for the house
Adam there is good money to be made in the North If you know what to buy and what to pay
There are some very rich landlords in the North