Buying Hi Yielding Property In the North of the UK
How things change…a couple of years ago no one wanted anything in the North…No one wanted Salford in Manchester. We started buying in Salford 5 years ago when you could purchase a terraced house for 50-60k. Now they are double that. It seems every investor I speak to from Hong Kong only wants Salford. On another tangent speaking to London investors and all they seem to want are the high yields of Hartlepool or Middlesborough.Now after refurbishing over 60 properties these investors forget to important issues….Management of the refurbishment of the property and management of the tenants. Both are critical to ones investment success…We have a project manager who is running between 4-5 refurbs of Social HMOs and Social family ( buy to lets which are on long term contracts). It is a daily battle…it is a constant Murphys law.
We had a turnover last week on a property and low and behold a couple of slates moved due to the high wind and water started coming into the kitchen…So much for passing on that property and try to get a roofer over the weekend…Good Luck even when you are a local and on the ground. Today the issue is being handled. Countless stories from broken keys in locks….breakins…needles…you name it…
This is just half of it…To many chase hi yields without realizing the tenants that live in these properties. We have LHA tenants in some of our properties…along with Professionals as well as social tenants. The easiest for us…and our model is to do Social HMOs and Social family houses…After all the refurb we get inspected and have long contracts with no voids..no management and no maintenance…This lets us focus on all the daily management of the refurbs…
Bottom line do not chase yields unless you have addressed proper refurbishment and proper management.
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