BTL in the North

by Readers Question

11:02 AM, 8th June 2015
About 3 years ago

BTL in the North

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BTL in the North

My wife and I are just about to start our BTL adventure and we have been looking at properties in Hull, Blackpool and Coventry. BTL in the North

We find that 97% of Hull is on a flood plain but the property prices are affordable to raise the 25% deposit. Should we avoid Hull and look elsewhere?

Where would you advise us to look?

We want properties in the range of £60-90K in the hope that the mortgage will be affordable if interest rates rise.

Thanks

Debo



Comments

Mark Alexander

11:05 AM, 8th June 2015
About 3 years ago

Hi Debo

Where do you live?

Most BTL investors start close to home. If this isn't practical for you, perhaps due to costs/returns in your area then you need to consider getting a good letting agent on board as that could make or break a deal for you. See >>> http://www.property118.com/letting-supermarket-full-management/68829/

Have you had a look at the properties listed on our tenanted property portal and considered the advantages of buying with tenants in situ? See >>> http://buytolet.property118.com/properties/how_it_all_works
.

money manager

11:40 AM, 8th June 2015
About 3 years ago

New to BTL? flood plains, hulls, and "underwater" position? Even if you could get a mortgage could you get insurance? and if so, at what cost?

I know the question was serious and the answer somewhat flippant but I think you'll get the point.

As to the mortgage being affordable when rates rise, the size of the mortage may be an issue but certainly not the only one. What about the availability of tenants at all or at the price you require? Might it be better to cconsider the robustness of tenant demand and payment capacity to reduce potential voids and periods of lower levels of rent?

Mark makes a good point about the value of a tenant in situ at purchase, no agent's sign on fee, no initial void etc. However, we have bought three units where the occupying tenant was paying as little as two thirds what we though achievable and the vendor was barely breaking even. That experience had deperessed their price expectation thus locking in an immediate increase in equity evidenced by the new and realisitc rental level achieved on relet.

Steve From Leicester

12:31 PM, 8th June 2015
About 3 years ago

Some professor or other was recently quoted in the press as saying that Hull would disappear due to rising sea levels before the end of this century.

Just saying . . .

Mark Alexander

12:37 PM, 8th June 2015
About 3 years ago

Reply to the comment left by "Steve From Leicester" at "08/06/2015 - 12:31":

That's a safe prediction for him to make because he will be a long time dead before he's proven to be right or wrong LOL

My prediction is that all BTL landlords will be billionaires in 100 years time 😉
.

Luke P

13:11 PM, 8th June 2015
About 3 years ago

I'm 25+ years in the industry over on the other side of the Humber in Grimsby. No need to spend more than £50k for decent rentable property with well over 10% return and no problems with insurance. I don't know if you're allowed to advertise telephone numbers/email addresses on here, but I'm happy to pass mine on if you want to know more and it's okay with Mark.

Mark Alexander

13:19 PM, 8th June 2015
About 3 years ago

Reply to the comment left by "Luke P" at "08/06/2015 - 13:11":

House Rules >>> http://www.property118.com/house-rules-business-sponsorship/
.

Chris Townsend

14:16 PM, 8th June 2015
About 3 years ago

Reply to the comment left by "Luke P" at "08/06/2015 - 13:11":

Luke I know Grimsby is a fairly cheap area in terms of house prices, but even so £50K seems extremely low unless you're talking about the smallest houses in the worst areas. (which surely don't attract very good tenants?). All of the houses I've seen in that area have been about £70K at an absolute minimum so I'm curious what kind of properties and which areas you're referring to.

Adebowale Ajao

15:02 PM, 8th June 2015
About 3 years ago

Reply to the comment left by "Mark Alexander" at "08/06/2015 - 11:05":

I am between gloucester and bristol. If we go up north we definitely will be using an estate agent. Also we are intending to attend a trident 3-day course just to learn the basics and go from there. has anyone attended this 3day course before and what do you think of it?

Luke P

15:27 PM, 8th June 2015
About 3 years ago

Reply to the comment left by "Chris Townsend" at "08/06/2015 - 14:16":

I'm talking about regular 3-bed terrace houses in very rentable areas with no problems (no more than any other areas). If you want small in the worst areas then you can pick houses up here for around £15-25k.

I've bought maybe a half dozen this year so far and all under £52k, all have rented at good rates and continued to be tenanted with no issues.

I would recommend using someone with local knowledge and don't be seen off by the estate agents. Grimsby is a very local place where everyone knows everyone and many sales are made well before they make it into any brochure or agency window display, just through the people you know in the industry.

(I'm Grimsby born and bred, having 100+ properties of my own (all in the Grimsby, Cleethorpes, Immingham area) and 350+ in those same areas that I manage.)

Mark Alexander

15:32 PM, 8th June 2015
About 3 years ago

Reply to the comment left by "Luke P" at "08/06/2015 - 15:27":

Hi Luke

Could you post a link to something decent currently listed on Rightmove please, just for guidance purposes of course?
.

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