All those new landlords out there who may be getting depressed at the negative news feeds on buy-to-let; may be cheered by one of my friends partners recent experiences.Jan had no previous experience at letting property decided to buy a place in Sheffield to let to post grad students. Having brought the 3 bed semi earlier this year she and my mate Gareth have spent the last 6 months doing the property up. Jan brought the property for £115,000 cash ....so no finance charges. She has spent about £25k doing the place up taking the total capital expenditure to around £140,000.
Having completed the refurb at the beginning of September Jan was fretting that she had missed the boat for this academic year. However, last week I met up Gareth for a pint and it appears Jan's managed to let all 4 rooms to foreign students for a mixture of 6 & 12 month tenancies. The rents for the room average about £260 a month or around £65 a week. This means a total rent of over a grand a month or £12k a year.
On my calculations that works out at just over an 8.5% gross yield. Result!
It just shows that good investment opportunities are still out there.....but just don't expect them to be handed to you on a plate.
Get me the cheapest landlord insurance
Always good to hear about success - well done!
ReplyDeleteNormally, low-income neighborhoods or areas near schools where student housing is short, the more demand. Who would you like your tenants? Some areas have a high demand for rental to students, where others have a high demand for families and singles.
ReplyDeleteonline tenant screening