Glasgow BTL Yield
Discussion
Continuing on from the other thread, I had no idea you could buy property anywhere in the uk that was this cheap.
There look to be decent (on the inside) two bedroom flats to be had for £30-£35k
Looking at the sums:
£35000 Flat =
£26000 Mortgage +
£9000 Deposit
£400 Rent/month -
£60 - 15% Management fee -
£122 Mortgage payment =
£218
£218 * 12 = £2616
£2616 / £9000 * 100 = 29% Yield
Or even £2616 / £10000 = 26% Yield (With fees + paint etc)
This sounds too good to be true?
Obviously there are the risks of no tenants, tenants not paying etc, but with a good management company and well vetted tenants to minimise these risks this seems like an interesting proposition?
Am I missing something?
There look to be decent (on the inside) two bedroom flats to be had for £30-£35k
Looking at the sums:
£35000 Flat =
£26000 Mortgage +
£9000 Deposit
£400 Rent/month -
£60 - 15% Management fee -
£122 Mortgage payment =
£218
£218 * 12 = £2616
£2616 / £9000 * 100 = 29% Yield
Or even £2616 / £10000 = 26% Yield (With fees + paint etc)
This sounds too good to be true?
Obviously there are the risks of no tenants, tenants not paying etc, but with a good management company and well vetted tenants to minimise these risks this seems like an interesting proposition?
Am I missing something?
BoRED S2upid said:
I wouldn't be buying in Glasgow and living in London no matter how good your management company is your going to need to visit once in a while.
There are other areas of the country where you can get sub 50k property and would feel safe visiting your investment.
Such as?There are other areas of the country where you can get sub 50k property and would feel safe visiting your investment.
Salgar said:
I don't think that's true, I just found 3 different lenders who have a lower minimum than that.
Really? Who?Not one lender
Natwest = £50k
BM Solutions = £40k
Kent Reliance = £100k
Woolwich = £66k
Abbey = £75k
TMW = £50k
Aldermore = £75k
Accord = £100k
Clydesdale = £125k
Coventry BS = £75k
Leeds BS = £50k
Virgin = £40k
Skipton BS = £50k
Not one lender I've looked at this morning would consider a £35k property.....
Sarnie said:
Salgar said:
I don't think that's true, I just found 3 different lenders who have a lower minimum than that.
Really? Who?Not one lender
Natwest = £50k
BM Solutions = £40k
Kent Reliance = £100k
Woolwich = £66k
Abbey = £75k
TMW = £50k
Aldermore = £75k
Accord = £100k
Clydesdale = £125k
Coventry BS = £75k
Leeds BS = £50k
Virgin = £40k
Skipton BS = £50k
Not one lender I've looked at this morning would consider a £35k property.....
25k minimum loan - nothing about value afaik
NPI said:
Salgar said:
Am I missing something?
£10K to fix the roof?Its a pitty Groak doesn't post on here anymore. He owns 100's of cheap flats in Scotland and had a lot of experience at the bottom end of the market. Had a 458 IIRC, so not doing too badly at it
Edited by 98elise on Wednesday 23 April 13:17
Salgar said:
HSBC won't do it.Most of the above lenders have minimum loans of circa £25k, but they won't lend on a £35k property.
What about the other two lenders you mentioned?
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