To buy or not to buy a BTL in Norwich?

by Readers Question

15:19 PM, 1st December 2016
About 2 years ago

To buy or not to buy a BTL in Norwich?

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To buy or not to buy a BTL in Norwich?

I am looking to buy in Norwich where prices have increased by 14.8% in the last 12 months. Frankly I don’t want to buy anywhere else as like to manage properties myself. In order to buy the house I am interested in, which has a very strong rental return I will need to pay asking-price.

I have never done this before, dislike the idea and am worried that I’m going to pay top-money at the top of the market

Any thoughts?

In 4 months this is the only property that will generate the returns I am after.

Many thanks

Richard



Comments

Neil Patterson

15:23 PM, 1st December 2016
About 2 years ago

Hi Richard,

I personally don't like to have a straight forward opinion as I believe it is always down to an individuals circumstances and more recently their tax position.

If you are a higher rate tax payer or may be in the future I am assuming you are consider doing it in the name of a Ltd co.

Our Property Research Tool may also assist >> https://www.property118.com/property-reseach-tool/

However Norwich is a fine city 🙂

On the ball city 🙂

Richard U

17:02 PM, 1st December 2016
About 2 years ago

Not sure about a limited company. There has been much discussion about this and there are limited benefits (no pun intended) to me, because interest would be a low proportion of income.

It is a fine city. A pity however about the football team. #COYB

None

12:22 PM, 2nd December 2016
About 2 years ago

Hi Richard,

I invest in Norwich, and understand what you mean about rising prices.

If you can improve the property so that it's worth much more then it might be worth considering an offer a little less than PP. I wouldn't recommend paying PP, unless the property has been undervalued.

There are opportunities in Norwich all the time, I've found it's worth waiting for the right deal.

Hope this helps.
Ian

Richard U

12:36 PM, 7th December 2016
About 2 years ago

Reply to the comment left by "Ian " at "02/12/2016 - 12:22":

Thanks for your thoughts Ian - I will exercise patience, I got out-bid (again). What type of lets do you get involved in Ian? My approach, means I am limited to a very narrow range of properties.


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