10:41 AM, 13th January 2023, About A year ago 9
First of all, a little background about my particular circumstances, which led to this question.
My step-mother passed away last September and left me her house. It’s fully paid for and is worth around £420K.
I now have a number of choices regarding how to use the house or to sell it and use its value, and maximise my returns.
Buy-to-let seems a good idea. Locally, I can get probably 2-3 £130K terraced houses for student lets from the value of the house. Rent spread across several properties spreads the risk and doing it all myself keeps costs down.
But, older houses need lots of maintenance and their value, if still low now, isn’t likely to increase very fast in future. I’m 58 and so this is a medium term investment, not really long term.
I’ve been looking at Alesco Property. They build accommodation blocks from which customers can buy flats. They are fully managed and can be purchased in parts of the country (like Liverpool and Manchester – some way from where I live) where house prices are expected to grow well – Northern Power House and all that.
There are properties around £130K – £180K so I can buy at least two and possibly 3, so I’d get the same number of properties. Rent and capital growth will be higher but so will agency fees and possibly service fees for the tower block.
They also have ‘Buy from Plan’ offers – it can take some time before the property is actually owned (still being built) but the properties are up to 20% cheaper when purchased early like this.
It’s important to note that I’d be buying individual flats – this isn’t a Real Estate Investment Fund with no direct ownership and the risk of losing all if they go bust. I’m not looking for that type of investment!
So, has anyone here had any experience of this particular company (or similar companies)?
What has your experience been?
Any opinions on the choice of buying direct of using a business like this?
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