Houses less than £25k in UK?

AdrianC

juanmanuelmarquez wrote: »

My grandfather was into the real estate business, and he used to look at run down areas where there were cheap houses for 30-40k and would put these type of properties on rent for long term investment. Since I have inherited the knowledge, not the properties and would like to know if there are any cheap houses in UK, in rundown areas for less than 25k?

Sorry, but I rather suspect your grandfather would be stood there right now, staring at you open-mouthed, wondering what the hell planet you were living on...

Sure, there's houses for <£25k out there. Plenty of 'em.

And they're that price for a damn good reason...
http://www.rightmove.co.uk/property-for-sale/property-36605613.html

If they were really going to let out at 15% yield without hassle, then they wouldn't still be on the market.

Pixie5740

I did say I wouldn't buy it. There are properties in Govanhill that are in such a bad state of repair now that Glasgow City Council is threatening to compulsory purchase the properties.

I know people who bought their first homes in the area 30 years ago and they all moved away years ago. The final straw for one couple came when someone took a dump on the welcome mat outside their front door.

On paper the property might generate a 16% return but there's a reason it's being sold. If the OP is looking for £25k properties that's what he's going to get be it in Glasgow, Burnley or wherever.

agrinnall

Pixie5740 wrote: »

The final straw for one couple came when someone took a dump on the welcome mat outside their front door.

That's not just a slum problem though, one of my FB friends had it happen to her recently and she owns a house in a nice part of the home counties - she was not amused :eek:.

Ozzuk

I echo the above comments that your knowledge is certainly lacking, however everything is about learning

There are still places in Wales apparently selling for £1! How are you planning on financing all this? I think most mortgage providers have minimum lending criteria so you'd really need to be looking with cash.

As a long term high risk investment (20-30 years) it could be interesting but you'll be tying up a lot of cash. Areas get redeveloped, land will always have an increasing value as it's in finite supply but I'd certainly be planning a long game.

ManuelG

Ozzuk wrote: »

There are still places in Wales apparently selling for £1! How are you planning on financing all this?

I'd pay cash in that scenario, tbf.

sgun

There are lots and lots of properties for under £25,000 but you might have a whole lot of hassle along the way actually making anything from them. My house 15 years ago was for sale for £28,000 and is now worth around £80,000 but in the next ex-colliery village similar houses are worth around £25,000 and haven't gained any value in the 15 years I have lived in mine (mostly gone down in value). So you really, really need to know your run down areas if you want to have long term investment.


A friend invested in a house in the next village, very cheap, rents it out very cheaply (but a potential 9% yield). All his tenants have been terrible and he hasn't been able to rent it out for the last 4 months as the last tenant left a flea infestation from having 4 cats that shouldn't have been there which he cannot get rid of. Last weekend it was all the floorboards up as a last resort.


It is possible but lots of work. That's why they aren't always wanted by professional landlords.

cns06

So your grandfather was spending nigh on twice what you want to spend probably a number of years ago I suspect. I think you need to be looking at £100-£120k houses to be looking at like for like..

juanmanuelmarquez

Firstly,
I asked a question but seem to have taken alot of stick.

I will be funding via cash. I have a seen a couple of 2bd room terrace for around 30-35k already tenanted with rental icome of 4k per anum.

Yes i admit times have changed, and i dont expect such houses to be like buckingham palace, prices are not the same but we do need to start somewhere; if it means bottom of the slums then so be it. I have plumbling knowledge and have been helping my grandpops plastering etc...so most of the work will be done by myself.

Thanks anyway for all your input eventhough some was not helpful, but derogatory.

Running_Horse

Sometimes the truth hurts, but it doesn't follow people are having a go. Some of the advice could even save you a lot of hassle, heartache and money. Whether you listen to it or ignore it is entirely up to you.

Instead of putting all the money into a grotty slum, why not use it as a deposit and take out a loan on better quality with higher returns. Even Fergus Wilson had to borrow to end up with 900 houses.