Great investment

Smamfer

A very random and probably doubtful question but any investors on here fancy a house with tenants??

Ill explain, been currently renting a bungalow in south lincolnshire which is in a well sought after area, older persons area well kept houses etc and in a kind of rural settings. The bungalow was modernised to a high standard 3 yrs ago brand new kitchen bathroom etc and lots of money spent, I have lived here for 3 years and decorated gardened etc totally looked after it.
Sadly on friday i received the call that the landlord HAS to sell, due to circumstances he needs the funds so therefore sadly the bungalow is going up for sale. Obviously i am totally gutted i adore it here and would never ever ever want to move, daughters bus stop literally 100 yards away its a safe area and just perfect in every way!

Its a 3 bedroom detached bungalow with large front and back gardens, id say in all the space is about an acre, it was priced in 2008 at around £180 give or take a couple of k either side, The bungalow is going to go on at £165 k but i have a good feeling it will be moved for a sharpish sale.
He would love me to buy it as he knows how much i adore it here and have never failed on rent bills and maintenance even done a bit of tiling and plastering just to make things that bit more perfect.

So anyway i know its a long shot but as the estate agents also mentioned to us should an investor buy it for rental reasons, they would be earning from day one and i would be willing when possible to sign a long term rental agreement should it be required... so should anyone out there fancy it,,, pls message me for more details, got to be worth a try on my front x

Gonzo33

Just wanted to wish you luck OP. I am looking in the Lincolnshire area, but for a family home to live in in a couple of years maximum. I hope you find yourself a new LL.

Smamfer

Gonzo33 wrote: »

Just wanted to wish you luck OP. I am looking in the Lincolnshire area, but for a family home to live in in a couple of years maximum. I hope you find yourself a new LL.

Thank you, this is a big bungalow, definitely a family home, which i suppose is going to make it very appealing to people, one a couple of doors away sold within a week

HAMISH_MCTAVISH

Why don't you buy it?

And out of curiousity, how much are you paying in rent?

Smamfer

HAMISH_MCTAVISH wrote: »

Why don't you buy it?

And out of curiousity, how much are you paying in rent?

Sadly like a lot of people getting the deposit and a mortgage these days is not always possible like it was a few years ago. im a working mother but on paper i know i wouldnt get a mortgage, i pay £550 a month for my rent

ognum

Smamfer wrote: »

Sadly like a lot of people getting the deposit and a mortgage these days is not always possible like it was a few years ago. im a working mother but on paper i know i wouldnt get a mortgage, i pay £550 a month for my rent

Sadly I dont think you will get an investor with those figures. £165k for £550 a month doesn't really hold up I can see why he is selling.

Is you rent cheap for the area, if so the other thing that might happen with a new LL is a rent increase.

Good luck, I hope it all work out.

HAMISH_MCTAVISH

ognum wrote: »

£165k for £550 a month doesn't really hold up

Indeed.

That's a pretty poor yield of just 4%.

The national average rental yield is more like 5.5%, and between 6% and 7% is widely enough available that I can't see many investors being tempted by 4%.

You'd need to be looking at a rent of £750 per month or better for that deal to even get close to making sense.... And if that's not what the local market will support, there's plenty of other places to invest where it will.

Smamfer

Hi there,

Thanks for your input, in 2002 the property was around the £95k mark and i believe the landlord bought it rather low priced therefore does not have a massive mortgage therefore makes on what i pay in rent, plus at the time he was very interested in having someone in that looks after it like i do and wanted long term, i understand what you say about %;'s but if a property is not looked after or left empty due to high rent required then surely its sometimes better to accept a little less and know you have no problems with tenants?? The area it is in as well is very quiet, as i explained more an elderly all retired and love their homes, and this doesnt suit your average family all the time that wish to be close to amenities, maybe why the rent was a little lower i dont know? For £750 a month in this area i could be looking at a 4 bedroom detached with lots of space etc etc, The LHA around here for 3 bedroom is about £122 a week i believe.
I suppose at the end of the day some investors may go for it knowing they would have perm tenants, a regular £6/7k a year which would be profitable should they be able to put a decent deposit down and want something for future and not just a quick buck, i know thats not a great business head but hey i can live in hope

HAMISH_MCTAVISH

Smamfer wrote: »

For £750 a month in this area i could be looking at a 4 bedroom detached with lots of space etc etc, The LHA around here for 3 bedroom is about £122 a week i believe.

Fair enough.

As I said, the market will support what it will support.

i know thats not a great business head but hey i can live in hope

Hope is good.

3 bed places up here tend to rent for 1200 or so a month, so I'm surprised just how cheap they are down there.

Smamfer

1200 a month!!!!! christ almighty is that city bound???

HAMISH_MCTAVISH

Smamfer wrote: »

1200 a month!!!!! christ almighty is that city bound???

Well that's for mid market, nice enough, and in town if that's what you mean, but country places within reasonable commuting range would be fairly expensive too. A grotty 3 bed ex council out in the burbs, or an average 2 bed flat in town would be more like 800-900 a month, so you can get cheaper if you try.

I'm in Aberdeen by the way, not London or anywhere really expensive.

Those places would all sell for less than 200K.