Buy to let sums - flat comparisons

ReportInvestor

ReportInvestor_in_June_2005 wrote:

North Leeds ringroad - Two bed flats

150,000 - Price
7,500 - Rent (625 pm)
5% - Nominal return

The North Leeds area is, nevertheless, prosperous and expanding since the city is the fastest growing in Europe.

Update

The asking rent on these properties has now gone up to £675pm

follyfoot

ReportInvestor wrote:

I'm hoping people could visit any new build flat developments near them and give us the advertised purchase price and the rental price on similar properties.

No need to do any sums unless you want to.

BTW North Leeds is a great place to live, and [probably] to buy a property for the long term. But I'm not primarily asking for opinions about that. As people have noticed, in Leeds the developers are relying on continued hopes of capital gains to flog their handiwork.

I'm more interested in creating a buy-to-let mini-survey of two-bed flats across the nation.

2 Bed new build flats in dulwich just off the lordship lane, London:

£240k (or £270k if you want top floor)
Rent £800-900 pcm - will be lucky to get £900 since station is a bus ride away.

Service charges £1000 per year
Ground rent £150


Seen a bigger development in Borough of Greenwich (not quite Greenwich)

Flats are about £315K
Rent cannot possibly be more than £900pcm
service charges are similiar to dulwich development

If you saw the building you would think they were offices

The lists goes on. Lewisham has in the last few years had loads of new builds spring up. I once went to see one where the price went from £250k to £215k by the time i walked out. they were desperate to sell but i still couldnt cover the mortgage and service charges. Estate agents told me i would be lucky to get £800pcm he had new builds no one wanted to rent.

I dont believe buy to let investors are buying them - they cant possibly be?

kinster_2

ReportInvestor wrote:

Update

The asking rent on these properties has now gone up to £675pm

I live in North Leeds, please elaborate which area you are talking about with rents up to £675pcm? Headingley, West Park, Weetwood, Chapel Allerton?

I know a few asking for silly rent, but are still empty. Such as the Consort Homes ones on Cardigan Road

tomstickland

Ok, in Gloucester new build 2 bed flats are around £120 - £130K and rents are £500-£600 pcm for similar properties.

rozeepozee

West Street, Central Sheffield new build 2 bed flats with parking advertised for sale £170K. Rented out for £715 and up.

rrwfotr

I've got a mate who's purchased a 2 bed flat for £180k in Oxford near a hospital in a good area. He is doing a buy to let on the place and will be topping the mortgage every month by £100 - £200 a month. (rental income £800 pcm) He thinks that the buy to let is a long term investment. He put 15k down as a deposit and going to pay the rest via mortgage repayments.

I personally think he's mad, what’s the point of going into a investment where your topping up the repayments every month only in the hope that the proprty equity will go up in years to come, is it worth the agro??

Am I being silly thinking he is a idiot??

:xmastree:

nmiah786

rrwfotr wrote:

I've got a mate who's purchased a 2 bed flat for £180k in Oxford near a hospital in a good area. He is doing a buy to let on the place and will be topping the mortgage every month by £100 - £200 a month. (rental income £800 pcm) He thinks that the buy to let is a long term investment. He put 15k down as a deposit and going to pay the rest via mortgage repayments....... QUOTE]

£180k BTL for £15k deposit......HOW.....WHOSE THE LENDER!!!???

rozeepozee

rrwfotr wrote:

I've got a mate who's purchased a 2 bed flat for £180k in Oxford near a hospital in a good area. He is doing a buy to let on the place and will be topping the mortgage every month by £100 - £200 a month. (rental income £800 pcm) He thinks that the buy to let is a long term investment. He put 15k down as a deposit and going to pay the rest via mortgage repayments.

I personally think he's mad, what’s the point of going into a investment where your topping up the repayments every month only in the hope that the proprty equity will go up in years to come, is it worth the agro??

Am I being silly thinking he is a idiot??

:xmastree:

Well, I don't think it sounds worth it.

When I bought the flat referred to above, I got it for £110K with a deposit/outlay of around £25K. After I've paid my mortgage, I get about £300 pcm in my hand which doesn't seem like a bad return on a £25K deposit. It's gone up in value to about £170K and I wouldn't bother to BTL at today's prices. I manage it myself and renting it is hassle free and I've had no voids in 2 years. If I didn't have such a great tenant, I would be sorely tempted to sell and bank the equity.

rrwfotr

nmiah786 wrote:

rrwfotr wrote:

I've got a mate who's purchased a 2 bed flat for £180k in Oxford near a hospital in a good area. He is doing a buy to let on the place and will be topping the mortgage every month by £100 - £200 a month. (rental income £800 pcm) He thinks that the buy to let is a long term investment. He put 15k down as a deposit and going to pay the rest via mortgage repayments....... QUOTE]

£180k BTL for £15k deposit......HOW.....WHOSE THE LENDER!!!???

It's nationwide I think, nowadays lenders are following over backwards to lend people money.

nmiah786

rrwfotr wrote:

nmiah786 wrote:

It's nationwide I think, nowadays lenders are following over backwards to lend people money.

Dont think I agree with that statement???