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Hi.  I'm a Brit based overseas looking to start my property investment portfolio in Sheffield. (My retirement rescue plan - I'm also enjoying the research process).  I'm looking to buy flats or terraced houses at between £135 to £150K to let out to young professionals or possibly students. I should be in a position to purchase 2 or 3 of these in the next 12 months. The investments will need to be hands off as I'm based overseas for the next 3-5 years.  I've found Rob Dix's excel spreadsheet very useful - Thanks Rob.

 

My current stumbling block is the viewings.  I can't physically view the properties I've shortlisted.  Although, it might be possible to buy without viewing I am a little apprehensive about doing so. I don't know anyone who could view them for me using facetime or whatsapp; or simply report back to me.  I'd be interested to hear others' experience using third parties to view on their behalf.    Has anyone used Upwork, for example? 

 

Any advice or tips would be welcome.

 

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Hi James, I'm new to the property investment life as well. Any particular reason you've chosen Sheffield? I've grown up and live in the city so interested to hear an outsiders view on us - sorry that I'm unable to recommend any third parties but I'd be intrigued to hear which route you chose and how that works out for you!

 

Mark

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Hi Mark,

 

Why Sheffield? I can afford Sheffield for one.  The city seems to be tightly packed around the center and its two universities.  I visited Sheffield two years ago and I visited two weeks ago.  I was pretty impressed with the progress the city centre seemed to have made in those two years.  All the signs for capital growth appear to be there yet still affordable.  The transport links within the city and to Leeds, Manchester, not forgetting Manchester airport,  and the South are very good too.   My initial enquiries with estate agents, letting agents, tax consultants and solicitors gave me confidence as well. On top of this Rob & Rob's analysis seemed to confirm my initial research.

 

The terrace houses appear to have a higher cash-on-cash return at the moment, mainly because of the management & service charges for apartments. Though with the potential capital growth, this might not be too much of an issue. 

 

The viewing issue has yet to be resolved.  If anyone has any ideas I'd be more than happy to hear them.

 

James

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Hi James,

 

I’m in the process of purchasing a place up in Sheffield - my first there. Should be complete in the next month or so.  Assuming this goes well I will also be looking at others. I live down south so only travel up there as and when (e.g. viewings, or to sort out the handover and works on the place I am purchasing). Happy to share hints and tips with you. 

 

Thanks,

Dominick

 

 

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Hi Dominick,

 

Do you mind sharing your experience here so that others like me also get benefitted. Something like how did you find the property, is it BMV, does it has good rental yield, is it self managed, what interest is your mortgage etc

 

Sorry for overloading with questions but it will be good to know anything you share

 

Thanks

vinny

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Hi Vinny,

 

Yes of course - no problem. Have you seen my other introduction post BTW :) It's here:

 

Regarding Sheffield, I guess my partner & I have been looking at various areas around the country to invest in. I can't remember exactly what drew us to Sheffield but we were looking for vibrant, good university towns. Those with a good mix of infrastructure, transport links, students plus job opportunities - and Sheffield fit the bill. It has a great tram network to get around the city, plus good links to London in the south, Manchester/Liverpool in the west and Leeds/Newcastle up north. The centre itself is vibrant - we were there on a lovely summer's day and had a great time. So that all boded well.

 

We looked at a few properties, opting for one that was near a tram link and only takes 5 or 10 mins to get into the city centre. It's a nice place that needs very little work if any though we will spruce it up a bit for new tenants (perhaps some new kitchen units, carpets, paint). I consider these long-term investments and tenants as my customers so would rather spend a little bit more up-front and hopefully have it paid back in the short and long term, with the place occupied sooner by better tenants at a slightly higher rent staying for longer! 

 

I don't expect to refinance and pull any money out, and it wasn't BMV. I'm just looking for a positive cash-flowing property and for there to be some capital appreciation over the next 5-10 years. There's some new build properties that have recently gone up in the area and potential for further regeneration so fingers-crossed. The property also has quite a large garden, plus is on a hill (you actually need to walk down some steps to get to the garden) so I feel there's scope there too should I want to extend the place. 

 

I've estimated refurb (really redecoration) costs at the worst case - 10k. I expect it to be much less than this but this should still bring an ROI of 18%. I will have this property managed, so expect to pay approx 10% of the rental income on this. Yield should be just over 7% including this. This doesn't include any additional costs like insurance or any maintenance. I shall set some aside for this. 

 

So all in all, I am quite pleased with this. The deal is just going through now (so don't want to give too much more away!) - the mortgage is interest only at 3.49% fixed for 5 years on a 75% LTV.

 

As mentioned in the other thread - I hope to get a blog set up somewhere and keep that updated, so will either copy&paste the blog into these threads or (most likely) put the link to the blogs here once they are set-up.

 

In the meantime - feel free to let me know if you have any more questions, or if you'd like a further update at any time (just incase I don't get round to doing so!).

 

Thanks,

Dominick

 

 

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On 11/3/2018 at 10:57 AM, domhardy said:

The property also has quite a large garden, plus is on a hill.

 

A house in Sheffield is on a hill? I never :P

 

Sounds like you've found a nice little earner. Be sure to share the blog when you're all set up as I'd be very interested to read that (looking at setting up a blog/podcast myself soon).

 

There seems to be have a nice little Sheffield group, as you'd expect. Maybe we could share knowledge going forward?

 

I'm currently looking at my first deal, in the south east area (close to where I currently live). May even stretch to Chesterfield as that is on the line between Sheffield and London.

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3 minutes ago, mark3 said:

 

A house in Sheffield is on a hill? I never :P

 

Sounds like you've found a nice little earner. Be sure to share the blog when you're all set up as I'd be very interested to read that (looking at setting up a blog/podcast myself soon).

 

There seems to be have a nice little Sheffield group, as you'd expect. Maybe we could share knowledge going forward?

 

I'm currently looking at my first deal, in the south east area (close to where I currently live). May even stretch to Chesterfield as that is on the line between Sheffield and London.

 

I shall do! 

 

And happy to share knowledge etc. My partner and I are actually based in the south east too, in Kent. Once the deal goes through and we take ownership we'll be heading back up to Sheffield to sort the place out and plan on looking around to see if we can find some more properties that way.

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Hi James,

 

Please see my intro above... 

 

I'm currently a student living in Sheffield while studying Real Estate at Sheffield Hallam and have lived in student properties in the Sheffield area for around 4 years now. I'd be more than happy to view properties on your instruction. Face timing/whats app wouldst be an issue as well as getting further pictures etc.

 

If you want to drop me a message I would be happy to discuss with you further?

 

Thanks


George

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Hi James,

 

I have you heard about ’viewber’ I believe they view properties on behalf of investors.You can google them and read some reviews, it might worth a try, I haven't used myself.

 

@Dominic, thanks for the insight, I am also looking at Sheffield for my first BTL.I currently live in Kent as well but the only difference is I am only looking for BMV deals. I look forward to reading your blogs and any information before your blog is ready will be highly appreciated(I know you said you don’t want to give much out for now, I completely agree).

 

 

Regards

Fola

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Hi Fola,

 

I have no problem providing info...just don't want to count all my chickens yet before this current deal has gone through! Still waiting for all the legals to complete and for contracts to be exchanged.

 

A question for you though, I'd be interested to know how you are planning to source BMW deals? Particularly in an area far away from where you are based? Assuming it is not trade secrets of course!!

 

Whilst I am sure there are some out there, in my experience these tend not to be on the open market and/or there's generally a reason they are BMV (i.e. a motivated seller). Given there are likely dozens of local investors in Sheffield trying to source them properties then are there any strategies you are planning to employ to find such deals?

 

Thanks. And good luck with your search!

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Hi Dominic,

 

I am planning to a use a sourcing company or an individual to source BMV.I am registered with a sourcing company reffered by someone I met at a Property Hub meet up in London, they have been sending me deals but none in my targeted cities.I was initially looking at Manchester though I am still partially open to any right deal.

 

I intend to look for local sourcing companies in Sheffield or individuals.it seems it might work better based on my experience of the sourcing company I currently registered with.I also look at Right Move basically for properties that have been described as needing work or from the look.

 

In the coming weeks I will be ringing local estate agents in Sheffield, I know getting BMV through them will be challenging but I don’t think it is impossible I have heard success stories of investors who got BMV through estate agents. Hope everything goes well with your deal.

 

 

Regards

Fola

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  • 2 weeks later...
27 minutes ago, vinnykapoor said:

Hi Fola,

 

I like your enthusiasm. I've also heard its possible to get BMV through local agents and want to try myself in sheffield. Please do share your experience and good luck.

 

@ Everyone else: Which area are you targeting in sheffield for good rental yeilds

 

Hi Vinny,

 

I've not actually done research into rental yields into Sheffield but living here I know the competition is pretty huge, especially in the city centre with 2 universities. A lot of high rise developments have been going up for those. And the whole city centre seems to be on a revamp.

 

However, the tram/train is now running to Rotherham - so I'm guessing there will be some good rental yields along that line. With the added bonus of Meadowhall that way as well.

 

Further afield, you have some good areas out of town especially towards south east side, which has Crystal Peaks, another great shopping centre with good transport links with the bus and tram, although a lot smaller than Meadowhall.

 

Pretty generic stuff, but I'd like to think (an educated guess) there's definitely a lot more options than a lot of cities.

 

Mark

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1 hour ago, hufhouse said:

Can anyone tell me if Hillsborough is within the Article 4 area?

 

Are there any other areas outside the Article 4 areas popular with students?

 

Hi hufhouse,

 

Have you checked the available documentation on the Sheffield council website re Hillsborough:

 

 https://www.sheffield.gov.uk/content/dam/sheffield/docs/planning-and-development/planning-applications/Article 4 Direction Report.pdf

 

Regarding your other question, I suspect City Center areas are most popular with students and hence these are the ones most likely to be designated article 4. However, I’d suggest double checking by calling a local HMO Lettings agent and ask them for their advice?

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20 hours ago, domhardy said:

 

Hi hufhouse,

 

Have you checked the available documentation on the Sheffield council website re Hillsborough:

 

 https://www.sheffield.gov.uk/content/dam/sheffield/docs/planning-and-development/planning-applications/Article 4 Direction Report.pdf

 

Regarding your other question, I suspect City Center areas are most popular with students and hence these are the ones most likely to be designated article 4. However, I’d suggest double checking by calling a local HMO Lettings agent and ask them for their advice?

Thanks domhardy... appreciate your advice

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  • 4 weeks later...

Hi All,

 

I am new to this forum but read the above thread interesting one. I have bought one 3 bed terrace in Sheffield beginning of Han 2017 initially was generating 7.75% gross but then dropped to 6.75% which is not bed. Our proprty is in S2 area which looks okay and reseanable prices. But I have started noticing some parts of S2 prices have started going up. Recently I re-mortgaged this property and it valued at 8.85% peice rise in two years.

 

I am looking to invest next year for at least one property, so looking for other areas of Sheffield. If anyone has any idea please do let me know.

 

One thing would like to share as the student market is staturating in Sheffield, so please be aware.  One thing I have learned is stay away from S4 area which is dump and all the estate agents I have met have suggested to stay clear.

 

Viral

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  • 3 months later...
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14 hours ago, sam funnell said:

Hi Dominick.

I know this thread is a little old now but I have been reading back through it as I am very invested in the Sheffield area, it seems like a fantastic city with a lot of great things to come in the future!

I have just begun some basic research into S1 and would love to hear how you are getting on with your property there, were you able to set up your blog?

Thanks

Sam.  

Hi Sam,

Unfortunately I have not got very far with the blog yet - is still on the to-do list but will hopefully get to it soon.

The deal in Sheffield is still going through believe it or not! There's been a bit of a chain involved but the other side should be completing very soon and so I hope to complete in the next couple of weeks. Slight complication now is that my mortgage offer is about to expire, though I have already started a new application. Hopefully that will come back this week and then we can complete next - fingers crossed!

Plan then is to go back up to Sheffield, sort the new place out and have a look around for further properties.

Let me how it's going for you and how you get on.

Dominick 

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On 4/16/2019 at 4:31 PM, sam funnell said:

Hi Dominick.

I know this thread is a little old now but I have been reading back through it as I am very invested in the Sheffield area, it seems like a fantastic city with a lot of great things to come in the future!

I have just begun some basic research into S1 and would love to hear how you are getting on with your property there, were you able to set up your blog?

Thanks

Sam.  

Hi Sam,

I have lived in Sheffield all my life and will be looking to invest there once my house has sold (have a completion date set for next month, fingers crossed).

I've done a very minor amount of research into 4 different post codes of Sheffield (S1, S3, S13, S20) around a month or so ago. I have all this on a spreadsheet - it's nothing fancy, not secret revealing, just helped me visual and gain a better understanding of areas.

Happy to share with you if this will help?

I don't keep the spreadsheet updated any more - like I say it was just there to help me gain that initial knowledge.

Thanks,

Mark

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