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Advise needed for Liverpool and leeds


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22 hours ago, magico said:

HI ive been looking as well in those area's im not really an expert but ive been doing abit of research and in liverpool its been the l2 postcode and l3 l1 seems abit expensive and in leeds its been ls2 postcode

I was looking at the outskirts of Leeds (Pudsey etc) as prefer to avoid flats and houses are out of my price range in LS2. Anyone thoughts on those areas?

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Hi Markos,

I'm from Pudsey! So maybe a little biased but I think it is a good area. I invested in Pudsey around 3 years ago and have seen a 25% valuation uplift in that time without buying BMV or anything like that (Was my first BTL). Yield is pretty good and I think there should be capital growth rippling out from Leeds in the coming years.

If you want to know anything more specific just let me know.

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My son and I have been investing in Liverpool for the past two years. We target run down Victorian terraces, refurbish them and let them out. We have done over twenty now. Our main area has been Anfield (L4) which many people will advise you to avoid. However, there is a lot of regeneration going on there around the football ground. Also, because the outskirts of the regeneration area doesn't have a good reputation, you can buy cheaply. A typical purchase for us is a small two bedroom  terrace needing complete refurbishment which we buy for £30,000 and spend £15,000 on it. There is plenty of demand from working tenants and we rent for £450 per month. That works out at a gross rental return of 12%. Alternatively, if you don't want the hastle of renovation then you can buy for £50,000 in move-in condition and again rent for £450 which is about 11% rental return.

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1 hour ago, nicholas walsh said:

My son and I have been investing in Liverpool for the past two years. We target run down Victorian terraces, refurbish them and let them out. We have done over twenty now. Our main area has been Anfield (L4) which many people will advise you to avoid. However, there is a lot of regeneration going on there around the football ground. Also, because the outskirts of the regeneration area doesn't have a good reputation, you can buy cheaply. A typical purchase for us is a small two bedroom  terrace needing complete refurbishment which we buy for £30,000 and spend £15,000 on it. There is plenty of demand from working tenants and we rent for £450 per month. That works out at a gross rental return of 12%. Alternatively, if you don't want the hastle of renovation then you can buy for £50,000 in move-in condition and again rent for £450 which is about 11% rental return.

11% Return? Thats awesome! Congratulations. Might have to look further a field. Currently in West Yorkshire and investing here for 6% and feel I should be doing better.

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56 minutes ago, allelitemanagement said:

Hi Nicholas interesting to hear that

Yes I have heard many people say to avoid Anfield but you do make a fair point there. So I take it you don't have problems renting them out in those areas? Also for these purchase prices for that low how do you finance them as I assume you can't buy them with a mortgage for that low?  Is it just 2 beds you focus on or do you consider larger properties or what other areas you explore also?

 

Thanks

If you buy in your own name you can get finance for values as low as £40,000 so ok. If you buy in a company name the value must be at least £50,000 so can be tricky for the cheapest 2 bed houses which we cash buy with a view to mortgage later after refurbishment. It is easier to get a mortgage for a 3-bed which typically can be bought for £60,000 without needing any work and which rent out for £550pm. So again 11% return.

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2 hours ago, david hamer said:

There's a development of high end apartments at HERCULANEUM QUAY, RIVERSIDE DRIVE, L3 4DJ which has stalled a couple of times over the years, anyone got a view on this area's prospects for this type of product ? Cheers

A year ago I put a deposit down for that development but pulled out after the developer wasn't able to answer some questions. Fortunately I was paid back the deposit before it all went pear shaped last Summer.

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2 hours ago, david hamer said:

There's a development of high end apartments at HERCULANEUM QUAY, RIVERSIDE DRIVE, L3 4DJ which has stalled a couple of times over the years, anyone got a view on this area's prospects for this type of product ? Cheers

In terms of prospects, I think it is a good area. It is at the end of a railway line to the city and not far from Festival Gardens for which there are bif development plans.

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12 hours ago, nicholas walsh said:

My son and I have been investing in Liverpool for the past two years. We target run down Victorian terraces, refurbish them and let them out. We have done over twenty now. Our main area has been Anfield (L4) which many people will advise you to avoid. However, there is a lot of regeneration going on there around the football ground. Also, because the outskirts of the regeneration area doesn't have a good reputation, you can buy cheaply. A typical purchase for us is a small two bedroom  terrace needing complete refurbishment which we buy for £30,000 and spend £15,000 on it. There is plenty of demand from working tenants and we rent for £450 per month. That works out at a gross rental return of 12%. Alternatively, if you don't want the hastle of renovation then you can buy for £50,000 in move-in condition and again rent for £450 which is about 11% rental return.

Taking this slightly off topic, but if buying for £30k and spending £15k doing up and at the end it's only worth £50k, what's the point? Appreciate if you're planning on renting out it doesn't really matter, but for anyone selling, they're making probably £3-4k after fees and regardless of how quick they refurbish them, you've still got 2-3 months for it to sell. An unforeseen problem and the profit has gone. So any tips for a would be doer upper?

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6 minutes ago, dino v said:

Taking this slightly off topic, but if buying for £30k and spending £15k doing up and at the end it's only worth £50k, what's the point? Appreciate if you're planning on renting out it doesn't really matter, but for anyone selling, they're making probably £3-4k after fees and regardless of how quick they refurbish them, you've still got 2-3 months for it to sell. An unforeseen problem and the profit has gone. So any tips for a would be doer upper?

Our strategy is to hold the houses and take the high rental return. We believe there will also be capital growth in Liverpool over the next few years. No effort is required to benefit from capital growth. 

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On 3/1/2019 at 11:20 AM, allelitemanagement said:

Yes ideally mine is a bit of both as I am looking for some for regular cashflow and hopefully some for rental growth. Having explored and speaking to a few estate agents and also sourcers its a bit of both. I been looking at the LS8 and LS9 areas Harehills and East End Park for possible properties to get cashflow. There are places not to go within those areas also so some due diligence Their houses there are lower so chances are you can get higher yield but low capital growth. 

Yes places like Headingly, LS14, LS13, LS12, LS11 areas are those likely to worth considering about capital growth. Its all a bit of a lottery to be honest and plan to go there again soon to see more of the different areas really. Let me know how you trip goes

My business partner and I are source property and we are also from Leeds so we have great local knowledge about the various different areas.

Areas such as LS8 & LS9 as mentioned above have some of the cheapest houses on the market (2-3 bed terraces) and they also let really well - also LS10 & LS11 too. Right now however the capital growth is little but there are some whispers to eventually regenerate some of these areas but they are quite away off.

In essence it all depends on what you as an investor wants. Are you looking for cashflow now or long term capital growth etc.

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On 3/1/2019 at 12:12 PM, nicholas walsh said:

A year ago I put a deposit down for that development but pulled out after the developer wasn't able to answer some questions. Fortunately I was paid back the deposit before it all went pear shaped last Summer.

I think they've gone into administration and first charge is with lenders on the Lendy platform

 

 

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46 minutes ago, david hamer said:

I think they've gone into administration and first charge is with lenders on the Lendy platform

 

 

Yes I believe that’s right. A pity because it’s a nice development and they were well on the way to finishing it. A lot of early buyers have probably lost considerable sums. My general rule is never to buy off plan because of cases like this one. I broke my own rule because I really liked the flat. I’m thankful I got out when I did. I will be interested to find out what happens to it now.

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  • 2 weeks later...
On 3/1/2019 at 8:43 AM, nicholas walsh said:

My son and I have been investing in Liverpool for the past two years. We target run down Victorian terraces, refurbish them and let them out. We have done over twenty now. Our main area has been Anfield (L4) which many people will advise you to avoid. However, there is a lot of regeneration going on there around the football ground. Also, because the outskirts of the regeneration area doesn't have a good reputation, you can buy cheaply. A typical purchase for us is a small two bedroom  terrace needing complete refurbishment which we buy for £30,000 and spend £15,000 on it. There is plenty of demand from working tenants and we rent for £450 per month. That works out at a gross rental return of 12%. Alternatively, if you don't want the hastle of renovation then you can buy for £50,000 in move-in condition and again rent for £450 which is about 11% rental return.

Nicholas

 

like your idea. I’m currently looking at doing the same on the L7 Edge Hill/Wavertree area. What’s your opinion on those areas. I’ve heard some good things. I’ve seen a place for £65k, ready to rent out at £550pm. 

Cheers

Alex

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