Buy to let property in liverpool city centre

ashu.doc

EverGreen wrote: »

I hope I am wrong ..(not judgmental). Seymour Street and Lime Street station are not the attarctive areas in the centre. If you know Liverpool you would understand what I mean.

I am new in liverpool so I really don't know, which areas do you think are good around city centre?

EverGreen_2

ashu.doc wrote: »

I am new in liverpool so I really don't know, which areas do you think are good around city centre?

If you are targeting student "tenants" then you look around the university area eg near Philharmonic, Catherine St, Falkner and around those. But bear in mind there have been huge developments for students accomodation in that area. You can also look in Sefton Park area.

eddddy

Hi ashu.doc

A studio in Seymore street, Liverpool - with 50% up front?

Is it this, by any chance: http://www.zoopla.co.uk/new-homes/details/35180633#my38eu0Xue6SYi1h.97

If so, you're not really buying a studio for £55k - you're making an unregulated investment of £55k in somebody's business idea.

Think of it like this. Somebody you've never met before says to you:

"I've got a really good business idea - do you want to invest £55k in it?

My business isn't regulated, so nobody has checked that anything I say is accurate, and nobody has even checked that the idea is feasible."

So before even contemplating giving these people £55k, you need to do a shedload of due diligence to check who they are, whether they know what their doing, whether their plan is feasible, whether the numbers stack up etc etc etc.



Or you could just buy a conventional property, from a conventional vendor, through a conventional estate agent - and remove loads of risk.

kinger101

Following on from above:

http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/10852153/Student-digs-offer-a-harsh-lesson-for-investors.html

BarleyGB

Sounds like a very dubious plan to me, I cant overstate how much you need to do your homework when considering BTL. You have to seriously consider every aspect and think like a businessman.

A very good book - Successful Property Letting: How to Make Money in Buy-to-Let

http://www.amazon.co.uk/Successful-Property-Letting-Buy-Let/dp/0716023563

Sounds like you are exactly the sort of person property developers target with get rich BTL schemes, with little recognition of the downside risks.

Lots of risk in the Eurozone and Global economy at the moment, hence why short term risk is high. Think about how you would manage if we have another crash like 2008 and the property drops 10-20%? As others have said youll already be paying a 10% premium buying new.

You've got to do a cashflow and plan to make your money via 'Yeild', i.e. profit after all costs (mortgage, agents fees, repairs/maintenance, ground rent, service charge) and all that on planned 10 month rental income as youll lose at least 2 months a year with voids, more on student accommodation.

You really need to know and research your market, not believe what someone else tells you. You admit you don't know the area, a key guide for buying BTL is to know the area/local economy factors in the area youre investing.

BarleyGB

eddddy wrote: »

Hi ashu.doc

A studio in Seymore street, Liverpool - with 50% up front?

Is it this, by any chance: http://www.zoopla.co.uk/new-homes/details/35180633#my38eu0Xue6SYi1h.97

If so, you're not really buying a studio for £55k - you're making an unregulated investment of £55k in somebody's business idea.

Think of it like this. Somebody you've never met before says to you:

"I've got a really good business idea - do you want to invest £55k in it?

My business isn't regulated, so nobody has checked that anything I say is accurate, and nobody has even checked that the idea is feasible."

So before even contemplating giving these people £55k, you need to do a shedload of due diligence to check who they are, whether they know what their doing, whether their plan is feasible, whether the numbers stack up etc etc etc.



Or you could just buy a conventional property, from a conventional vendor, through a conventional estate agent - and remove loads of risk.

Just followed the link, if it is this or similar I wouldn't touch it with a 1000ft barge pole, loads and loads of dubious claims, potential hidden costs and risks.

As suggested why not just do your own research "buy a conventional property, from a conventional vendor, through a conventional estate agent - and remove loads of risk"

50% deposit should sound massive alarm bells, chances are it means the developer need deposits to fund the build.

a) If the schemes so good why aren't they financing the build?
b) What happens if there's an economic downturn, they only sell 30% and or go bust
c) Paying large amounts up front is a no, no, the same way you don't pay a builder up front for home improvements

BarleyGB

"How much appreciation shall I expect in 2-3 years time?" potentially none

You shouldn't even consider property investing if you need to ask this question, don't know how to work out the answer yourself.

Main think is that property investment is a long game, think 10+ year investment horizon as a minimum. Its not a get rich quick scheme.

ashu.doc

Thanks everyone for advices.