A guy asked me this by email yesterday - he was worried about saturation of flats in that area, and I penned the following reply. However when press send it bounces back. Not sure how this is possible as I'm replying to the original email I received, but clearly it is! Anyway, what about new build flats in Upton.....
Don't
worry about saturation - there's no sign of this currently.
If you gave me 20 flats in Upton, I'd find you tenants,
provided you priced them sensibly. I wouldn't be able to
find 20 immediately, but I'd do 2 a week for 10 weeks
without too much trouble. Some times with new build blocks
of flats they all go to rental and they all complete on the
same day. That creates a short term problem with supply and
demand, but once the initial hurdle is overcome, normal
service resumes.
Whether you should buy new build is another question! Some people do this as it looks nice and everything is guaranteed. If you're a good negotiator you may be able to get the builder to chuck in all the things you need to get it let - appliances, window blinds, flooring. It's an ultra low risk approach to buy to let. However you will always pay a premium for a new build property and whether it makes financial sense is another question entirely! Compare these 2 properties:
They are both going to rent for the same money - £575PCM. But one is £30,000 more than the other. A lot of people would still be more attracted to the new one as it's much prettier, but if these were the only 2 properties available I know where I'd be sticking my money! What I'd spend the £30k saving on is another matter entirely.
Whether you should buy new build is another question! Some people do this as it looks nice and everything is guaranteed. If you're a good negotiator you may be able to get the builder to chuck in all the things you need to get it let - appliances, window blinds, flooring. It's an ultra low risk approach to buy to let. However you will always pay a premium for a new build property and whether it makes financial sense is another question entirely! Compare these 2 properties:
They are both going to rent for the same money - £575PCM. But one is £30,000 more than the other. A lot of people would still be more attracted to the new one as it's much prettier, but if these were the only 2 properties available I know where I'd be sticking my money! What I'd spend the £30k saving on is another matter entirely.
