50 k for a 2 bed room terraced house ?

nzhang6666

sgun wrote: »

There are many, many areas in the UK where you can get a 2 bed terrace for £54k or less. And your tenants may well reflect the area that it will be situated in. A friend in Ipswich recently had £4000 of repairs to make and had to evict (a long process with no rent being paid as tenants wanted to be made homeless).


Another friend up here in the NE has had an 8 month void as he could not get rid of fleas despite having a no pets rule. He found out that tenant had moved out from a conversation in the pub rather than the tenant being honest and speaking to him (to be fair, I think she was really embarrassed but that didn't solve his flea problem).


Only take on a rental like this if you really know what you are doing, it can be a real financial drain otherwise.

This is what they said about the rental (below). So if rental is guaranteed and I won't live in that area myself(at least in near future), and the company is genuine, is this a good deal?

Rental Yield

Most of our clients opt for Guaranteed Rent. For these

properties the Guaranteed Rent is 7% of contract price.

Actual rent is higher at around 8% of property price but

most clients select Guaranteed Rent as this provides

certainty of income. After all deductions including

deductions of management fee (10% of rent) the

guaranteed net net rent going into your bank account

will be about 6.2% of property price/year.

Continued Ongoing Property Management

Management and Guaranteed Rent is initially for a

minimum period of 2 years. Find UK continue to

provide Property Management, Guaranteed Rent and

Cost Free Repairs under annually renewable terms, after

the first 2 years at clients’ choice.

googler

nzhang6666 wrote: »

This is from the email the agent sent to me:

Location

All of our 2-Bed Type 2A-S category of houses are near

I think post #6 has all you need to know.

Guest101

Op guaranteed rent, means you rent to them, they find the tenants who can claim the most on benefits, stick them in there.


The tenants would not pass normal referencing, and they'll trash your house, and the agent, isn't an agent, but your commercial tenant, so you'll not be able to evict using s.21 or s.8 or anything else.

xylophone

Why not consider a stocks and shares ISA now, perhaps investing In equity income (or maybe REITs if you favour property) holding the balance in high interest current accounts and adding to the ISA after 6 April?

The c £20,000 kept in high interest current accounts after April 6 gives you your emergency fund, the stock market your risk in hope of reward....

nzhang6666

Guest101 wrote: »

Unfortunately Lancaster is no where near the M65, this will be Burnley likely. Which has nice areas, but is generally a bit run down.

Oh, my mistake, a typo, they did say it's in Lancashire.

Pixie5740

A fool and his money....

Doozergirl

Please tell me you're not still looking at it?

One of these was on Rip Off Britain or Watchdog or whatever.

jimbog

nzhang6666 wrote: »

This is what they said about the rental (below). So if rental is guaranteed and I won't live in that area myself(at least in near future), and the company is genuine, is this a good deal?

Rental Yield

Most of our clients opt for Guaranteed Rent. For these

properties the Guaranteed Rent is 7% of contract price.

Actual rent is higher at around 8% of property price but

most clients select Guaranteed Rent as this provides

certainty of income. After all deductions including

deductions of management fee (10% of rent) the

guaranteed net net rent going into your bank account

will be about 6.2% of property price/year.

Continued Ongoing Property Management

Management and Guaranteed Rent is initially for a

minimum period of 2 years. Find UK continue to

provide Property Management, Guaranteed Rent and

Cost Free Repairs under annually renewable terms, after

the first 2 years at clients’ choice.

.............

:wall:

Guest101

I have a rock that prevents Tiger attacks - it's for sale at £500. Want to protect your whole family? A bag containing more than enough for grandparents, aunts, cousins and anyone else can be yours at the super discount rate of £10,000....


That's what you're being sold here OP (except I'd actually give you a bag of rocks, which is more than you'd get there)

luhrmann

i never understand why people use management companies, tbh. they charge both the landlords and the tenants extortionate fees for very little and even their promise to manage the property and deal with repairs etc are rarely true. you can advertise privately and do your own referencing and credit checks for very little!