Buying Property Below Replacement Value In the UK

Sam Zell made his money by buying property below what it cost to build. In order to build a 2 bed simple terraced house in todays world you are pushing without taking into the land and of course location…probably close to 70-80k. We are have been buying in an area in the Northwest substantially below this. My colleagues have a long history of managing these type of properties. Many landlords turn their nose up at LHA because they do not know how to manage them. They do not understand Universal credit or evictions.

For example we just had a similar property agreed as this one on Dane Street. Some of these we will keep and some we will sell off to investors with full management. We will be selling properties like this in the low to mid 50k range. They will rent for 425 to 450 for a 2 bed.

Compare this to new build that so many are flocking to city centre. One estate agent joked that we could even make more money just by taking apart the property and selling off the bricks. In order to succeed in property, you need to buy right and have management. We look to create value via Professional Hmos and Social HMOs.