Possible buy to let property dilemma

Bluebell1000

Hi all, we're looking into whether to buy a btl property. We have one already but it's some distance away and we're looking for something closer.

Saw a property today that was fantastic. OK, it was a wreck, new roof, some repointing, total redecoration, new bathroom, new central heating system needed. However it was big, has great potential for rental. We'd split off the front room to make 4 good sized bedrooms for individual lets (probably to students) and there would still be one good sized reception room.

So having left the property discussing how much to offer, we noticed a big sign up around the corner. Several nearby properties have been compulsarily purchased for a new large road (Lincoln east-west link road). The property would be right next to the slip road.

That means building starts 2014 for two years... I think there will be a barrier between house and road once the work is done but we have two HUGE concerns. Firstly, is anyone going to want to live next to a building site. Secondly, what's it going to do to potential resale value. The last thing we want to do it get stuck with an un-lettable, unsellable house.

I think writing it all down I've convinced myself it's a bad idea, even though the house is great, but others opinions are welcome...

ognum

If your target market is young singles then you have to price it so competitively the rooms will go.

I will never by something in an area I wouldnt ask my kids to live in, so, would you let your kids live there?

Bluebell1000

The area is decent now. It's just the uncertainty of what it'll be like with a big road on the front doorstep that isn't so good.

Aaargh.

There are times when I'd very happily leave my little boy there However that's more to do with him rapidly approaching the 'terrible twos' than the house itself. Haha no he's lovely really, as long as I don't try and take his scoot along car away from him.

BitterAndTwisted

With this amount of uncertainty about the future redevelopment I wouldn't touch it with a barge-pole.

Bluebell1000

If anyone wants a look it's one of the houses on the right at 1 min 18 seconds!
http://www.lincolnshire.gov.uk/residents/transport-travel-and-roads/highway-improvement/projects-in-planning/lincoln-east-west-link-road/high-street-to-pelham-bridge/109382.article

tim123456789

Bluebell1000 wrote: »

If anyone wants a look it's one of the houses on the right at 1 min 18 seconds!
http://www.lincolnshire.gov.uk/residents/transport-travel-and-roads/highway-improvement/projects-in-planning/lincoln-east-west-link-road/high-street-to-pelham-bridge/109382.article

why have they made this "film" with the pavements covered in snow?

Bluebell1000

It's cold 'oop north' you know

AlexMac

So after a couple of years, your student tenants will be living on a main road? Like lots of people. OK you wouldn't raise a family there, if you wanted clean air, parking, easy unloading, etc but if you've done the numbers right, and its in a student area, and presumably you'll have bought it dirt cheap, and have created a HMO with (presumably) double glazing to keep the noise out, a robust, student proof/bomb-proof spec for shower-bathrooms, kitchen, decor, etc and presumably near shops, pubs, transport, you'll be getting the 8-12% return on investment that students pay...? And then when you come to sell, you'll sell on to another student Rachmann, sorry, landlord, with evidence of the overpriced rental income that students are forced to pay...? You do the numbers- sounds a fun project but it all comes down to cost

Bluebell1000

LOL AlexMac, I'd be a better landlord than many... at least we'd try and look after the place. I remember one friends rented house while I was studying where the kitchen ceiling fell down, because the landlord couldn't be bothered to fix the leaks...

We've done a bit of adding up and think it's probably priced too high anyway - at least for the level of risk, when we don't know what the road is going to do to property prices. Maybe we'll put in a low offer and see. Still considering!

Yorkie1

It's not completely clear from the film, but will they lose parking once the development starts / is completed? I'd have thought a 4-bed BTL, if rooms are let separately, is likely to have at least as many cars to be parked ... something to consider for the future.

Bluebell1000

Yorkie, yes the on street parking will disappear with the new road. Most of the university accommodation doesn't have any parking anyway, so students will be used to that, but it is something to consider. Parking would be more of an issue if we went down the young professional room rental route.

We've got some more viewings to do so will see what they're like in comparison! We've decided not to offer on this one anyway. Thanks everyone