10% yield on a BTL

westernpromise

Graham_Devon wrote: »

It's an auction guide price. I.e. starting price. Done to lure people in, and it seems to have worked in your case.

It's not the price.

spadoosh wrote:

That place isnt selling for £40k.

Itll be £60k+

Gwendo40 wrote:

For someone with so many posts and such forthright opinions on all things property related the OP appears to be remarkably naive as to how the auction process works, in particular with regards to guide prices.

Well, it seems that despite the de haut en bas nonsense from savvy old hands Graham, spadoosh and Gwendo, that was indeed the price:
https://nethouseprices.com/house-prices/street-details-sale/79a74e21b5e71289e0536b04a8c01627/15%20sefton%20terrace,%20burnley,%20bb11%204pz/2018

MOST RECENT SALE PRICE PREVIOUS SALE PRICE
£39,500 on 21st Sep 2018 £53,750 on 2nd Jan 2007

So 10% return still available oop north. Makes you think...

AG47

After no del chaos ny lots in these unctions will be no bid, there will be too many repossessed properties flooding the market as interest rate go back up to normal as the pound sterling sinks to new depths and the crash takes the next leg down

chucknorris

AG47 wrote: »

After no del chaos ny lots in these unctions will be no bid, there will be too many repossessed properties flooding the market as interest rate go back up to normal as the pound sterling sinks to new depths and the crash takes the next leg down

So you are saying even bigger yields than 10% then, it is unlike you to support westernpromise, but I suppose there's a first time for everything.

Also sounds like good news for the ftse 100 too. I'll wait and see though, I am not as bullish as you are.

movilogo

So let's say you're an absentee landlord and you bought this place without ever leaving London.

The number of absetee landlords is much higher than you might expect.

There are landlords who are not even UK residents who buy properties in UK without even looking at them!

It is completely legal.

You can still buy houses for £50k in North East which can fetch rent in the order of £425-£475 PCM.

westernpromise

So this one would be £40,685, with a sitting tenant paying £5,700 a year. Assuming £915 a year in odds and ends of work and a 5% management charge, that's a nice round £4,500 of rent a year for a gross return of 11%. Nice little tickle and you can see why people buy 20 of them.

Graham, Spadoosh and Gwendo would all miss out in opportunities like these having overvalued the property by 50% or so to begin with.

This has been quite helpful in identifying a new sort of troll. In counterpoint to our resident crash troll Crashy Time, we now also have "boom trolls", in effect. If you were buying that property, Graham and cohorts would be along to tell you shrewdly that it'll cost 50% more than the guide price, while if you were selling it, Crashy would pop up to warn you it's worth 50% less than the guide price. If you ignore them both you make 11% :rotfl::rotfl::rotfl::rotfl:

Sailtheworld

Assuming the market is somewhat efficient it must be much riskier running an end of terrace BTL in Burnley than a swanky apartment in London and, of course, a higher yield is required as compensation.

Unless, that is, you've spotted a free lunch in which case the obvious thing to do is to sell the London place and buy 20 places just like these.

Good luck.