Buy to Let Property Acquisition Service09 Jul 2021
When a sourcing client gives me a budget of £60,000 – £65,000 buying a traditional tenement can be tricky…so I tend to look toward more “modern” builds – think ex-local authority properties or flats built in the 1980s.
These tend to less pricey to buy than a tenement in the same area, but they generally generate the same or similar rents. They also often have lower maintenance costs associated with the – lower ceilings, less complicated pipework because they are purpose-built so haven’t been converted, often lower factoring costs too. However, they generate lower resale prices in general – first-time buyers often don’t fall in love with them, the way they might with a traditional tenement – but while you own them as a landlord, if they generate the same rent, should you care?
These more modern flats can give a great yield – with low maintenance costs – case study below on a recently sourced property for a client:
Purchase Price £60,000
Fees and Spend to get rental ready – new kitchen, some new flooring, upgrade electrics £8,500
Total Spend £68,500
Monthly Rent £550pcm
Yield over 9.5%
This client lives overseas – so we do it all for them – hassle-free investment offering passive income.