9:06 AM, 12th September 2014, About 10 years ago 10
I’m now finally ready to purchase my first BTL property!
Deposit saved, mortgage in principle agreed, solicitor on standby but, I’m still not sure what type of property to invest in.
I’m looking to buy a property in the Liverpool area for up to £70,000 with a 25% deposit.
Option 1: A 2 bed leasehold flat has come available for 67,000. It’s in a rentable area close to good bus links, shops etc and in good condition only being constructed in 2004. But I’m a not fully comfortable with buying a leasehold property. Should this be a concern? I must also add the property is repossession.
Option 2: I could easily pick up a terraced house for c.60k which would be ready to let right away but at this price it will be in an area where I’d be letting to students & DSS and with potential of small amount of capital gain.
So suppose the question I am asking is, do I take the safe option and buy a leasehold flat, in good condition which will rent fast and give an Ok yield but possibly start costing me more on service charge payments if things go wrong with the building or do I go with a freehold terraced house where I would have full control of the building and not have to deal with management companies.
Any advice much appreciated