City of Culture vs local investment
I have had my offer on a flat near to my home ( Watford) accepted with an anticipated rental of £1,000 per month at a purchase price of £285,000 which comes out at around 4%.
My research, which has been tentative at the moment, and a recent article I read on properties in Hull suggests a possible return of 10% +. Hull is due to be the City of Culture in 2027 so I also anticipate further capital growth in a couple of years.
Even allowing for agents fees I’ll be making a better return in Hull with none of the hassle I have self managing my small locally based portfolio.
Any comments or advice from other investors would be appreciated.
Thanks
Peter
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Member Since January 2011 - Comments: 12208 - Articles: 1404
4:29 PM, 1st June 2015, About 11 years ago
Hi Peter
I did some work for a Consultancy client of mine last year based on a very similar thought process.
His conclusion was that 10% yields are indeed achievable in Hull ….. BUT …. they are rough properties in rough areas and that most parts of Hull are subject to high flood risk.
There are, of course, nicer properties in Hull but you will not get 10% yield on them.
My client is now considering up-market HMO’s in other areas of the Country for yield and is also investing into lower yielding modern properties to achieve a blend of rental return and capital growth.
.
Member Since July 2013 - Comments: 561
6:57 PM, 1st June 2015, About 11 years ago
Find the “benefits tenants” TV program and watch it…………
There are very few agents that can cope with the type of tenants 10% yield properties get!
Member Since July 2013 - Comments: 184 - Articles: 1
8:42 PM, 1st June 2015, About 11 years ago
Buy closer to where you live mate, be on hand if you self manage, but I’m sure you know that.
Member Since September 2014 - Comments: 15
8:47 PM, 1st June 2015, About 11 years ago
Whenever I watch programmes like homes under the hammer,it astounds me how much properties cost in the south,In Greater Manchester you can still buy a good three bed semi for £80,000 or less and get £650pcm,and all of my tenants are working and respectable,so far,you don’t get the high capital growth enjoyed elsewhere,but for rental yields its better,A few years ago a friend of mine focused on buying two bed terraces in the Burnley area,each costing under £20,000 and giving rental returns of £375 pcm, Wherever you buy,there are pros and cons.
Member Since July 2013 - Comments: 561
10:36 PM, 1st June 2015, About 11 years ago
=> In Greater Manchester you can still buy a good three bed semi for £80,000 or less and get £650pcm
Not easy these days….