First time buy to let – North West

First time buy to let – North West

19:34 PM, 14th August 2013, About 8 years ago 15

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Okay readers. I’m a buy to let newcomer looking to spend approx £25k, hopefully on two BTL properties priced up to £50k, thus 25% deposit. First time buy to let - North West

I have considered Bootle in Merseyside and Rochdale/Oldham area with the new metro link.

Any thoughts as to where to find the best priced properties as I hear there are better places than the commonly advertised agents online?

Thanks

Damian Sabino



Comments

by Damian Sabino

10:39 AM, 17th August 2013, About 8 years ago

Reply to the comment left by "Tom Doolin" at "16/08/2013 - 17:48":

Many thanks Tom. I will do just that.

by Damian Sabino

10:53 AM, 17th August 2013, About 8 years ago

Thanks Peter. I live very near airbus and hae had a look but they appear a bit ore expensive.... I'm not too acquainted its beacon ad to know where to and where not to consider. So perhaps a chat?

by Peter Hindley

18:16 PM, 17th August 2013, About 8 years ago

Reply to the comment left by "Damian Sabino" at "17/08/2013 - 10:53":

Hi Damian
Happy to chat. I'm a novice really - bought my first last Sept, 2nd in March & I have 2 going through now. All 2/3 bed single lets, nothing complicated. All I can pass on is what others have told me about our local area & my own limited experience. I live near bottom of M53 (Hoole Hall area).
Cheers Peter

by Damian Sabino

21:46 PM, 17th August 2013, About 8 years ago

Reply to the comment left by "Peter Hindley" at "17/08/2013 - 18:16":

Well sounds like you are making a good start mate. I am currently in saltney.

by BobG

10:38 AM, 18th August 2013, About 8 years ago

Reply to the comment left by "Damian Sabino" at "16/08/2013 - 11:02":

Hi Damian

For a new investor you do seem to have a lot going for you namely some cash and a good understanding of what to look out for.
Mark is spot on with his comments about due diligence - I used to buy with my heart because I like property and once in the early 80s ended up with a grade 2 listed building described on the television as "the worst property in the Midlands" It turned out to be a bit of a nightmare and as a flip not very profitable. I am now much more methodical and do a lot more research.

Due to poor returns I have stopped buying where I live and have also looked north

I have recently bought a number of properties in areas such as Scotland, Leeds and Durham. As an actual example, I have bought five properties in Leeds over the last few months, 3 at auction and two through private sales. The costs were £37 500,(refurb cost £ 7 500) £40 000, £40 500, £45 000 and £50 000 and properties are well built Victorian 2/3 floors, terraced with a cellar. They rent at £500 to £650 pcm and are in an improvement area so have new front walls, rewires, new roofs etc. .

The returns are up to 20% before costs and tenants are on both benefits and working.

These deals are available in many places all you have to do is do the due diligence and research the area. I will often spend a month checking out an area - sale values, rents, benefit payments etc. Go to meetings, local property meets, NLA and RLA, talk to people and go on various sites to get a feel for what is going on. Go to auctions to watch how people bid and see how they value the properties. Visit the areas in the evening as well as the day. You say you are already talking to Estate Agents and Letting Agents which is the right approach.

Mark is correct - many sharks and crooks out there who want a lot of money up front which would be better spent putting towards a deposit on a property.

When you make an offer go in at ca 20% below asking price and see what happens. I recently offered £50 000 for a property advertised at £69 000 in Stoke. They were sceptical at the time but came back to me a month later and asked if I would finalise the deal.

As you are in it for the longer haul it is difficult to go wrong as long as the property is in a good state of repair, the area is OK and the rental demand is present. If you make some money on the initial deal then you have added value from the start.

Best of Luck

Bob Grant,


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