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Buying cheap property as BTL

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Robert1989

New Member
Hello

I am pursuing a property portfolio targeting cheap housing stock mainly located in the north of England. Property prices will range from £25,000 to £40,000 and brought for cash.
Renovation works will be carried out and I plan to then turn the properties over to the rental market likely to those requiring affordable housing or claiming housing benefits.
I solely intend to build a large enough portfolio of this cheap housing stock, 10-20 houses, and to use rental yield towards purchasing additional houses.
To diversify I expect to buy more valuable housing stock in more affluent areas once income allows.
I would like to hear from anybody who has ventured down this road before and can offer an insite into how successful they were.
 
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nmb

Well-Known Member
I am from the North of England and while I have not ventured down this particular path myself I have read about many others who have done so. One thing which stands out is the need to create a strong foundation of rental income, as you have in mind, and then use this positive cash flow (with rental yields in the double-digit range available in some areas) to build and expand. I would reiterate the point that you need a strong foundation for the future therefore choose carefully when looking at your initial investments and do not be in a rush.
 
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Longterminvestor

Administrator
I know there is a difference between the "market rate" in the private sector and payments made via housing benefits. What kind of difference are we talking here in reality? A small enough hedge to guarantee the relative security of housing benefit tenants?
 
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diyhelp

Active Member
Did you manage to get this project off the ground? Personally I like the idea of creating a steady base of properties offering relatively high rental yields and good cash flow. In the longer term the rental cash flow can be used to diversify into different areas. Remember, cash flow is vital!
 
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