UK BTLs looking good

I stick with terraced houses in the Liverpool area. Values have fallen but rents are increasing . This is especially true if you take on social tenants.
You can now buy 2 bed terrace houses ready to rent for 45k to 55k. At these prices you are not in prime areas but very rentable areas. Local Housing Allowance rates are £114.23 a week. This gives an annual gross rent of £5940 which is 11pc plus gross return. You also have the possibility- probability of good capital appreciation.
The LHA is paid directly to the tenant so you really need a good letting agent who will keep on top of things.
Banks in the UK are very tight and are now only giving 65% to 75% loans and are charging big arrangement fees but cash buyers could do very well.

You know what you are dong don’t you, its very clear. Very clear.

I’d invest if those returns were genuinely available over the medium term.
I wouldn’t factor in much capital appreciation but 11% yield is solid

If only the same were true in dublin

Maybe the question should be why not!

Hopefully the question will become when?

guardian.co.uk/money/2008/no … cer-allsop

Your main assertion still has not being addressed might come back to it and add,

*UK BTLs Looking Good *As UK Government Subsidises Landlords by Proxy.

How well would your “bussiness model” work without hand outs from the Government?

Why does the business model need to work without Government help? There is very little chance the rent subsidy will be removed in the future.

I think that the answer is that it wouldn’t.

IMO, Angler has still paid over the odds when compared to pre-bubble prices. Liverpool City Council should snap these properties up for about £30k each. The housing benefit paid to the unemployed tenant would then go straight back to the council as landlord, instead of into the pocket of a private landlord, English, Irish or otherwise.

Hmmm, back to what you paid for them in 2004 then?

Started buying in 2001 wjth a 3 bed terrace for £11500. It needed £3k spent on it. Bought most in 2002 to 2004 and paid 27k to 59k for terraces.Prices have fallen back but they will rise again and I think that these sort of houses will be the first to take off.
The Council probably would be better off buying up more and letting themselves. With lay offs etc demand will increase for social housing and rates may actually go up as many banks are reluctant to lend to landlords.
An interesting think I am finding is that it is much easier to let terraced houses to social housing tenants than city centre flats. I dont have the latter myself but I know lots who have and they cant let them at all.

A pretty tidy mid terraced 4 bed house has just come on the market in the Birkenhead area at £59950. An offer of 55k to 56k may secure it. The social allowance rent for 4 beds in the area is £170.08 pw. This is £9000 pa which would give a 15% return. Nat bad at all !!!

Very interesting, can you give some more examples? Is the social allowance rent the exact same throughout the UK regardless of location? Has there been much new-builds in Liverpool recently? Is the population of the city rising or declining?

The housing allowance varies from area to area. Google lha-direct and you will get the Local Housing Allowance website. The rate can vary slightly from month to month.
There are lots of new build flats in Liverpool city centre as there are in most Northern cities in England. Every derelect building, car park etc seems to have been developed over the last 5 years and sold “off plan” at crazy prices to investors. Many of these investors are Irish who bought mainly from Irish property traders many of whom added huge margins for themselves. I have heard of some Irish property traders adding £40k to the prices that they had negotiated.

So go on then, you’re not just trying to tempt Dreaded Estate in, are you? :laughing:

dailymail.co.uk/tvshowbiz/ar … 0-000.html

Just a comment. Saw a bit more TV than normal over Easter and caught a number of the Houses under the hammer, Location Location Location type of snow jobs. Most are repeats but I noticed that whenever prices were mentioned a little strap line came up with e.g June 2007 as in that was the date of the programme. There was a lady who bought in 2007 in some part of London I think, had never seen the house, never told the partner. A recipe for disaster me thinks

Yes i’ve noticed that also Disco…A few months ago some of those repeated programmes did not have the disclaimer at the bottom but now particularly the B.B.C. do mention the year… And just for the folks who might be tempted to buy abroad…Please remember the sterling difference… what might seem a great return on rent could change with all the quantitative easing going on! Did I spell that right?

Borrowers with the state-owned Bradford & Bingley (B&B) are defaulting on one in twenty mortgages and the failure rate is set to go even higher.

Richard Pym, B&B’s chairman, told The Times that the proportion of borrowers more than three months behind on their repayments had worsened since March, when B&B reported an arrears rate of 4.6 per cent, itself double the 2007 figure.

business.timesonline.co.uk/tol/b … 401725.ece