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buying ground rents???

Noticed a few property auctions recently where ground rents were for sale, offering yields of 8%+.

Anyone know anything about this?
I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.

Comments

  • theGrinch
    theGrinch Posts: 3,133 Forumite
    Part of the Furniture 1,000 Posts
    yes. they have been for sale for a while and some canny buyers have built up nice portfolios but typically look for 10%.

    it is attractive as the outlay is less than a property itself while the yields are good and steady.

    however, i am not sure whether auctions would offer the best deals
    "enough is a feast"...old Buddist proverb
  • Curious_Moose
    Curious_Moose Posts: 710 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    Must be a bit of a pain to contact every owner in a development and chase them for the ground rent each year.
  • silvercar
    silvercar Posts: 50,021 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    Must be a bit of a pain to contact every owner in a development and chase them for the ground rent each year.

    True for flats, where you would also have the hassle of engaging a management company to service the flats etc.

    For houses the involvement is much less AFAIK.
    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
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