Purchase of property in Shildon?

by Readers Question

11:22 AM, 26th March 2021
About 3 weeks ago

Purchase of property in Shildon?

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Purchase of property in Shildon?

Hi All, I’m in a discussion with a property consultant to purchase a property in Shildon, County Durham (Thomas Street). It is a terraced house freehold.

I’m looking for some review on the area since I’m looking into this for investment purposes only. The house is around GBP 33,000 and currently tenanted at GBP 325pm.

Please guide me if there are any points which will help me reach a better decision as I don’t live in the UK. Also please guide me how easy is it to sell the property in case I would like to exit the investment? Also is it easy to get a tenant in case the existing tenant leaves?

Thank you.

Rameez

Comments

Dylan Morris

13:30 PM, 26th March 2021
About 3 weeks ago

I’ve no knowledge of the area but with a house price so ridiculously low it’s got to be pretty awful hasn’t it ? You need to consider the quality of tenant you will attract. Presumably you’re only going to attract UC tenants. And that can be a huge headache. Unless you’re a landlord who’s very very experienced in dealing with benefits tenants in the poorest areas, my advise would be to look elsewhere. (Good potential yield though if this is what you’re into).

Simon

13:39 PM, 26th March 2021
About 3 weeks ago

I have a couple of properties in the area, its a good return on investment (about 10%) which is a pretty good return considering you would not get much with that amount of money sitting in the bank.

There are private tenants there and they are reliable in making rental payments on time. You may come across the occasion UC claimants, again I have not had a problem with them but it can take time for them to submit and approve the UC claim.

I would recommend you carry out a full survey on the property before purchase and also better to have it managed by an agent they can find tenants for you and also manage the UC claims if the tenant is a UC tenant.

I have had these properties for about 3 years now and I bought them for about the same price as you are buying (3 bed properties). They have gone up in prices so that's a good thing!

Ive never seen the properties I just relied on the Survey and the managing agent. So far so good!

LordOf TheManor

14:29 PM, 26th March 2021
About 3 weeks ago

Hi Rameez
The area looks fine according to the last census data (of 10 years ago). I'd say £30k is a more realistic price for it though. What's the door number of the property?

Rameez

3:57 AM, 29th March 2021
About 2 weeks ago

Reply to the comment left by LordOf TheManor at 26/03/2021 - 14:29
19 Thomas street

Rameez

4:02 AM, 29th March 2021
About 2 weeks ago

Reply to the comment left by Rameez at 29/03/2021 - 03:57
DL4 2JX


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