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Quality tenants or massive yields - is it a trade off?


jitz

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Hi all,

I've been looking at Liverpool for a while now and have noticed people saying the cheaper areas offering the best yields are often not the best for getting good tenants. For example, areas like Bootle, Kirkdale, Anfield, Kensington.

Is this true? Is it better to look at some of the more robust areas, like Wavertree and Toxteth?

Really at a loss here as I'm not from the city. I'm liking Anfield due to the regeneration that is likely to happen over the next few years, but want to make sure it's fine before buying anything. Is Anfield okay?

Is there any areas you can recommend for the best yields but good quality tenants? 

Thanks!

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This is one of them how longs is a piece of string questions.

Each area is different but the principle is the same, houses up here are relatively cheap and the rents are high in comparison. You should be driven by you numbers (i.e. ROI). I invest in Liverpool and live here too, i have just helped an investor (out of town) purchase on property and hopefully another within the next couple of days. We are looking at about 7-10% ROI, i am helping with the renovation to help keep costs down and increase the overall ROI. 

I can help if you wish and i am happy to share with you my other investors for a reference. I  don't charge anything as i cant commit to much as i have a fully time job whihc pays the bills, for now. 

 

Michael 

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On 3/1/2021 at 3:57 PM, michael_heyes said:

This is one of them how longs is a piece of string questions.

Each area is different but the principle is the same, houses up here are relatively cheap and the rents are high in comparison. You should be driven by you numbers (i.e. ROI). I invest in Liverpool and live here too, i have just helped an investor (out of town) purchase on property and hopefully another within the next couple of days. We are looking at about 7-10% ROI, i am helping with the renovation to help keep costs down and increase the overall ROI. 

I can help if you wish and i am happy to share with you my other investors for a reference. I  don't charge anything as i cant commit to much as i have a fully time job whihc pays the bills, for now. 

 

Michael 

Hi Michael,

Thanks for this. I think I've narrowed down my search to Kirkdale and Anfield as these areas both seem okay in terms of potential. Would you agree this is the case?

Thanks again

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On 3/3/2021 at 9:35 PM, jitz said:

Hi Michael,

Thanks for this. I think I've narrowed down my search to Kirkdale and Anfield as these areas both seem okay in terms of potential. Would you agree this is the case?

Thanks again

the only thing I would say is personally I wouldnt invest in these areas as i feel the quality of tenants won't be high. however that's my opinion and I like to be proven wrong. 

You can generally tell what type of tenants you will attract by whats in the local area, in terms of employment. 

feel free to give me a call 07860533602

 

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  • 4 weeks later...

Hi Jitz, 

Of the two areas you’ve chosen I would look at Anfield, not sure on your budget but It’s defiantly true about the cheaper values and the yield, but I personally I have found that it is not worth purchasing anything to cheap to avoid this problem, although anyone can fall on hard times but I feel that it’s a little safer to purchase something better in better areas. (Anfield is ok though) 
 

You mention Wavertree? Wavertree is a big area so parts of Wavertree are great but I’d avoid anywhere around the Webster Triangle especially if your looking for single let property. There was a programme on channel 4 a couple of years ago called £ houses which was a documentary about a couple of streets around the Webster triangle that where tinned up and being sold for a £, and the problems they had with them and the council but It will also give you a good indication of the type of tenants that are in the area and that I property around there would attract, It might be an idea trying to get it back on catch back on the tv? 
 

I was asked to look at a property for an investor a 3 bed terraced house on one of the streets not far from the area @ 2 years ago. I mentioned the area to the investor and the programme which he had not seen which was on recently but he was not Interested in my view, and had obviously just had yield in mind... 

 

The house was a nice 3 bed terrace at the end of a one way street in a quiet location and from the photos/clips of the area it seemed a good investment, but it was speaking to the next door neighbour who had lived there for 40 yrs it highlighted a lot of red flags, from gangs on the streets of a night, to noise issues with the neighbours, a large group of Eastern European’s moving in one of the houses creating noise, she said that a prostitute was working out of one of the neighbours houses who had been knocking on the doors trying to drum up business the other week 😳 and she had a kennel of which she said that she feed the feral cats who assisted the neighbourhood with all the fly tipping etc.
 

If I wasn't put off the property at the start I was after that conversation... I obviously told the investor all about this and haven’t heard from him since but it’s worth researching the areas fully... 

 

Thanks, 

 

Neil

 

www.propertyviewernorthwest.com

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