Want 15% Return On Your Cash

[davidg]

Anyone catch Homes under the Hammer today? Couple of Leeds guys bought a 2 bed terrace in Burnley, unseen, at auction. Paid 20K. Refurb was 3.5K and are renting at 300 UKP/Month so a 16% return I think.

The downside with Burnley seems to be people thieving any fixtures and fittings from empty properties so you could have a major refurb if there is a void.

However the following program about fraud highlighted a Swindon man who bought 3 BTLs from a professional BTL company and is now in terrible negative equity with no tenants and risk losing his principal home, all because he let greed cloud his judgement and he didn't even Google the name of the company he was handing his money over to. The case featured Liar Loans, Mortgage Fraud. NE. Over leveraging, Repossession. All HPC favourites.

[durhamborn]

Anyone catch Homes under the Hammer today? Couple of Leeds guys bought a 2 bed terrace in Burnley, unseen, at auction. Paid 20K. Refurb was 3.5K and are renting at 300 UKP/Month so a 16% return I think.

The downside with Burnley seems to be people thieving any fixtures and fittings from empty properties so you could have a major refurb if there is a void.

However the following program about fraud highlighted a Swindon man who bought 3 BTLs from a professional BTL company and is now in terrible negative equity with no tenants and risk losing his principal home, all because he let greed cloud his judgement and he didn't even Google the name of the company he was handing his money over to. The case featured Liar Loans, Mortgage Fraud. NE. Over leveraging, Repossession. All HPC favourites.

You get a lot of voids in the north east.Most bought the cheapest in the worst areas.Bad move.

There are much better areas where you can get a good 3 bed for around £70k with a £450 pcm rent where youl rent very easily .Less return on paper but a much better investment.

The best growth is in 3 beds renting all 3 rooms and paying the bills.You can get £1050 a month income,bills+repayment mortgage circa £600 and never a void,you can rent the rooms 20 times over so much demand.

Also much easier to evict.Very few people can afford to rent house up here and pay the bills the wages are so low unless on benefits.

A house in a decent area with all mod cons renting rooms out is a much better deal for the landlord and single tenants.

[Biggus]

If there was a 15% yield to be made the price of the houses would have been bid up long ago. There is not. Landlords in Burnley are all selling up or going bust. There is no industry in that region any more. There are no jobs. Nobody wants to live there, it's a dump That's why half the town is boarded up and houses are selling for 20k, which is still 50% overpriced if you ask me.

But don't take my word for it. Fill your boots.

[interestrateripoff]

Is it guaranteed?

[papag]

I do bits of work for BTL guy and i couldn't have on my mind the scum/ issues that he has in his houses, add he is always chasing rent with the tenants refusing to pay for many reasons eg work not been completed, leaks not fixed, condensation, them having no money, etc etc, add the smell mess the un- kept gardens regular neighbours complaints, devaluation of the houses re value etc its not a bed of roses far from it.

The BTL guy has many sleepless nights and freely admits he would never recomend it to anybody and 100% regrets his venture his wife is now very poorly with worry , he is locked in and cant sell as he paid well over today's value for the 13 or so terraced property's.

15% no thanks

[BNS]

If there was a 15% yield to be made the price of the houses would have been bid up long ago. There is not. Landlords in Burnley are all selling up or going bust. There is no industry in that region any more. There are no jobs. Nobody wants to live there, it's a dump That's why half the town is boarded up and houses are selling for 20k, which is still 50% overpriced if you ask me.

But don't take my word for it. Fill your boots.

Yup.

Burnley is pretty much a commuter town.

Older people I worked with had children living in Burnley as they could afford nowhere else.

It worked for a while, except they keot getting car mirrors taken off and fuel price increases kept squeezing them.

[Democorruptcy]

You get a lot of voids in the north east.Most bought the cheapest in the worst areas.Bad move.

There are much better areas where you can get a good 3 bed for around £70k with a £450 pcm rent where youl rent very easily .Less return on paper but a much better investment.

The best growth is in 3 beds renting all 3 rooms and paying the bills.You can get £1050 a month income,bills+repayment mortgage circa £600 and never a void,you can rent the rooms 20 times over so much demand.

Also much easier to evict.Very few people can afford to rent house up here and pay the bills the wages are so low unless on benefits.

A house in a decent area with all mod cons renting rooms out is a much better deal for the landlord and single tenants.

I've seen 12 bed ex-hotels on the market for less than £200k (Not in the NE).

If you could let at say 67% occupancy so 8 at £80 a week it's £33k coming in a year.

You have a lot of chances to get the wrong sort of tenant each year though....

[Guest_James Toney_*]

most of my friends have BTL, most with only a couple of houses, and who bought about 2005. the ones with just 1 or 2 or 3 houses are doing just fine, but another with about 18 houses (bought about 2002 so not anywhere near NE) is always saying he is p!$t off with it and wishes he never went to far and got so many , as another poster said it is the greed that gets to them,

but the ones with just 1 or 2 houses and IMO sitting pretty and was an excellent investment,

[awaytogo]

You get a lot of voids in the north east.Most bought the cheapest in the worst areas.Bad move.

There are much better areas where you can get a good 3 bed for around £70k with a £450 pcm rent where youl rent very easily .Less return on paper but a much better investment.

The best growth is in 3 beds renting all 3 rooms and paying the bills.You can get £1050 a month income,bills+repayment mortgage circa £600 and never a void,you can rent the rooms 20 times over so much demand.

Also much easier to evict.Very few people can afford to rent house up here and pay the bills the wages are so low unless on benefits.

A house in a decent area with all mod cons renting rooms out is a much better deal for the landlord and single tenants.

The house was totally vandalised when it was empty even though it was a mid terraced house, surely the neighbours must have heard something. i bet they had to sleep in it while they were doing it up to stop further validation even though they had put up window bars.I wonder what the insurance would be , i bet it is high,

[awaytogo]

Is it guaranteed?

[EmmaRoid #FBPE#JC4PM#GTTO]

Do you want 15% of your cash returned?

[Gone baby gone]

Is it guaranteed?

100% guaranteed, to invoke the legendary catchphrase.

[Gone baby gone]

Life in a northern town...

[davidg]

The house was totally vandalised when it was empty even though it was a mid terraced house, surely the neighbours must have heard something. i bet they had to sleep in it while they were doing it up to stop further validation even though they had put up window bars.I wonder what the insurance would be , i bet it is high,

It is a regular feature on HUTH. Whenever you see a terrace property from Durham to Doncaster they've been stripped inside of anything that could sell with the vandalism costing a lot more to repair than the value of the stolen fixtures. I'm not sure window bars would keep the scallywags out and who wants to live in a prison?

I can't imagine insurance companies being keen to insure for that kind of damage.

[Biggus]

Sad state of affairs when housing is the only investment that makes any sense to anyone. People used to start businesses or invest in going concerns by buying stocks. Shows what a sorry state the economy is in.

[awaytogo]

Sad state of affairs when housing is the only investment that makes any sense to anyone. People used to start businesses or invest in going concerns by buying stocks. Shows what a sorry state the economy is in.

If you watched today's Home under the hammer there was not much positive sentiment for investing in property either.

[fluffy666]

Is it guaranteed?

Yep, you'll get at least 15% of your money back.

[aa3]

Honestly... good idea.. and since the people living there don't have jobs the government picks up the rent. No need to worry about bounced cheques.

[durhamborn]

It is a regular feature on HUTH. Whenever you see a terrace property from Durham to Doncaster they've been stripped inside of anything that could sell with the vandalism costing a lot more to repair than the value of the stolen fixtures. I'm not sure window bars would keep the scallywags out and who wants to live in a prison?

I can't imagine insurance companies being keen to insure for that kind of damage.

Durham?,,probably the best city in England to buy a property to let.Lovely city and very very low crime.A lot of the surrounding towns though do have a large amount of scrap metal traders,we used to have steel works but we dont make it anymore,just recycle it.

[Si1]

future returns on northerrn sh*t towns dfepend on govt money going forward - so gonna get worse and worse

[iamnumerate]

Anyone catch Homes under the Hammer today? Couple of Leeds guys bought a 2 bed terrace in Burnley, unseen, at auction. Paid 20K. Refurb was 3.5K and are renting at 300 UKP/Month so a 16% return I think.

The downside with Burnley seems to be people thieving any fixtures and fittings from empty properties so you could have a major refurb if there is a void.

However the following program about fraud highlighted a Swindon man who bought 3 BTLs from a professional BTL company and is now in terrible negative equity with no tenants and risk losing his principal home, all because he let greed cloud his judgement and he didn't even Google the name of the company he was handing his money over to. The case featured Liar Loans, Mortgage Fraud. NE. Over leveraging, Repossession. All HPC favourites.

It is not really a 16% return as they presumably must do some work which of course is a cost.

If they could earn e.g. £10 per hour and then they do 4 hours per month then the return is £260 pcm. A return of 15.6%.

If it is 10hours per month then 12%.

If it was bought at auction I could see a few days work needed before they rent it out.