NOW SOLD Cheap Property, High Yield in Northampton (10%+)

A "no brainer" for someone here - a 2 bed flat, offered as a £60k repossession, that will generate £525PCM in rent. That's 10.5% yield before we start deducting. I have 2 similar properties in my own portfolio, and they generate far more income than the more aesthetically pleasing properties I have elsewhere.

A few key points to note.

1. This is a leasehold property, but because the freeholder is likely to be the Council, the service charge is likely to be reasonable - £50PCM or so. Don't know how long the lease is - clearly that needs checking - but they are usually around the 100 year mark which is fine.
2. It's going to be a tenant in receipt of benefits due to a) the area and b) the desire to get the maximum yield. Don't worry about this - we're managing it for you.
3. It's a repossession so you have to buy it quickly. If you mess around for weeks arranging a mortgage someone will come and steal it off you. As such you should buy cash if you can, get the deal done in 7-10 days, and re-mortgage later if you really want to. 
4. It may need some work. Most repossessions do. Don't worry about this either, as again we will sort it out. Often with these properties we can get things like free boilers so you may not even end up getting the bill. Clearly you'll be negotiating on price, so if it does need a big spend, that will get factored in. But it's still a great buy!

RUGBY - What can you buy for £140k

When most people look for a buy-to-let investment, they have a budget. With that in mind, over the next few weeks, I’m going to look at what a given sum should buy you in  Rugby. In doing this, I’m talking about properties in good lettable order, so if a property needs works doing, this is what you should budget INCLUDING works.  Have a read, and if you want a chat about properties you've seen, EMAIL ME! richard.baker@belvoirlettings.com.

What will £140k buy in Rugby?

We're now at the top of the typical investment market, the domain of the risk averse landlord who wants to buy in one of the (supposed) better areas and enjoy (supposedly) fewer hassles along the way. The comfort factor is higher - the yield will be lower. Commercially aggressive investors won't spend this much, but investors who own maybe 1 or 2 properties often like the security of this type of investment. It's also interesting to note how many properties advertised for sale in this price band aren't worth the money! There are plenty that should really be in the price band below (up to £120k) but still find themselves advertised for £130k+. Caveat Emptor!

This is a modern 3 bed with a single garage. It's about 5 years old and should, in theory, be far lower maintenance than an older property. Tenants love this sort of thing because the kitchens and bathrooms will be good, and everything will be neutral and clean. £650 should be easily achievable, yielding 5.7% which isn't all that bad!

Alternatively, you could go for the older version of the same thing. You'll get a larger plot, a nicer area (Hillmorton? Bilton?) and a property that you instinctively have a lot of confidence in. The trade off is that this should, in theory, cost you more to maintain than the one above. They'll rent the same money and cost about £135k, so the yield should be very similar.

RUGBY - what can you buy for £120k?

When most people look for a buy-to-let investment, they have a budget. With that in mind, over the next few weeks, I’m going to look at what a given sum should buy you in  Rugby. In doing this, I’m talking about properties in good lettable order, so if a property needs works doing, this is what you should budget INCLUDING works.  Have a read, and if you want a chat about properties you've seen, EMAIL ME! richard.baker@belvoirlettings.com.

What will £120k buy in Rugby?

Spending £120k doesn't really open up any new areas compared to spending slightly less. But it will get you a nicer or larger property in the key rental areas of town. It also means you can afford pretty much any Victorian Terrace in town too.

This, for example, is at the nicer end of the Victorian market (larger, front garden, bay window, etc). It will rent for £600, and sell for as much as £120k which yields at 6% - not the highest yield ever, but appealing to investors who like to buy places they feel they could perhaps live themselves. 

Alternatively this takes you out towards Bilton, and offers a more modern property in a decent area, with garage etc - very popular with tenants at around £575PCM, but also very popular with first time buyers which is why the yield is never quite as high. These type of properties represent very safe, but not particularly exciting, investment opportunities.