Good investment?

[sam_r]

Saw this in a sunday paper.

Does anyone know the area or have any comments / advice?

www.greenbankleeds.com

Sam

[billsnemesis]

7% on paper may look good but these deals usually work through designated agents with no self management so your net return has to knock off their fees. After 10% plus VAT you are only going to get a whisker over 6% - and they might charge 12.5%

The main issues are (1) is the flat worth the price without the incentive (2) what is the local market like for renting (3) how much competition is there going to be if a lot of people take the deal - if the block is full of BTL's is it going to saturate?

It's only worth doing if it stacks up without the incentives. You should be able to get 5.5% self managed anyway so is it worth it for a guaranteed income and 0.5%?

[the londoner]

800 apartments? If a goodly portion of those are btls, in two years time I suspect rental values will drop somewhat if lots of investors are trying to find tenants.

[Gaffer]

Lets put it this way.

All the apartments in my building were sold off plan in 2 hours (fastest selling in manchester to date).

I am paying £850 a month, I found out the other day that the landlord is paying the same amount as me to cover his mortgage.

The apartment has now gone on the market for 219K - he bought it a year ago for 240K.

I wouldnt bother buying an apartment, unless you are in it for the long term and can afford to have dry periods (as is happening in manchester where there are more apartments than people to rent).

HTH
Claire

[roop]

Agree with the Gaffster. There's a number of empty apartment in my building here now, 90% of which are unoccupied due to repos. Every time I go into the car park there's another 997, SL, Conti or Cayenne in there, so something doesn't stack up - not as if there isn't money about...

[maxed]

sam_r said:

Saw this in a sunday paper. Does anyone know the area or have any comments / advice? www.greenbankleeds.com Sam

It states Gross Rental Return 7%
Not good enough after paying maintenance fees etc.

[roop]

Properties for rent in Dubai are returning in excess of 10% (excluding increase in asset value) at the moment and despite logic, have shown little sign of slowing. Perhaps have a pop at one of those...? Less convenient, admittedly, but keep the dosh in an account otu there and it's tax free.

[maxed]

Yeap...been over there very recently
Rental yields are good but you must buy in the right zone bit like Florida.
And my man over there is doing some interesting sourcing.....

[roop]

We bought in Springs and it's rosy