For over 20 years I have been advising and helping Landlords
to source buy to let properties and increase their portfolio and I want to
share with you how one of our portfolio landlords added a successful buy to let
property to his portfolio. The Landlord,
a very busy London based businessman, approached me back in 2010 to say he
wanted to increase his portfolio of buy to let properties from 3 to over 10,
having secured a financing arrangement through his bank, he tasked me with
finding him suitable properties which would give a gross yield of over 5.5%.
Having identified several likely properties, one in Horn Lane popped up with an
asking price of over £140,000 which was in need of a little work and
refurbishment. The price was successfully negotiated down to £135,000 and after
a couple of weeks the works were completed and a tenant secured at a rent of
£750pcm giving a gross yield of 6.66%.
Just six years later similar properties are on the market for
£235,000....... Giving the owner a potential 74% capital growth! That coupled
with an increase in rental yield from 6.7% to a healthy 8.5% demonstrates that
Buy to Let properties can still be an attractive long term investment.
Uncertainty in the housing market following the Brexit vote
remains high and reports of a property crash one day are followed the next day by
other reports telling us the housing market is in crisis and prices for both
rents and purchase are going to continue to rise. There was similar uncertainty
following the banking crisis in 2008 but as you can see from above a good
return was still achieved.
Newport Pagnell has always been a popular area for lettings,
with it being close to good senior & junior schools, a range of shops,
restaurants and pubs within walking distance and good access to the M1 and
Central Milton Keynes. If you are
considering a Buy to Let property, the following has an asking price of
£235,000 (there might be some negotiation) and with a bit of work would attract
a rental of about £1000pcm, giving an approximate yield of 5.1%.
If you are thinking of getting into the property rental market as a new
investor and don't know where to start or what to look for locally, speak to us
for impartial advice and guidance to get the best return on your investment.
For more information about other potential investment properties that we could
introduce you to, or to ask about our thoughts on your own investment choices,
call us now on 01908 562582 or send us an email.
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