had a conversation today, and being clueless i was just um-ing and ah-ing
for unbiased answers, if one wants to buy an investment property around £100k mark
where would be reasonable good area, and would let out easily?

Forget it. This is a very bad time to buy property for investment, unless you're looking for virtually no profit for a very long time. You could certainly buy cheaply now while the market is so low, and when prices go up, as they inevitably will in the long term, you'll make some capital gain. However, Sheffield has a glut of rental property, and rental income is very depressed. The cost of management and maintenance will eat into anything you make, and you wouldn't cover mortgage payments with rental income.

If people listened to all the doom and gloom no bugger would ever do anything. So, putting all that to one side...

find a property that will make you a return in excess of around 115% of cost after management deductions, make an offer and enjoy it. Speak to a few lenders to get an idea of their criteria.

Students are the traditional easy route but location is becoming more and more important. A few years ago I wouldn't have suggested anything past Nonnas, but even that is now a bit too far out for many students. Similar terrace houses are now more suitable for post graduates, young professionals but the income is less and any offer should reflect this.

Traditional family homes in areas like Fulwood, Ecclesall, Hillsborough, Woodseats, in fact most 'normal' places with good bus routes and local services should be fine. Again, make sure that you do your sums and you shouldn't have many problems.

<Snippety snip>

Traditional family homes in areas like Fulwood, Ecclesall, Hillsborough, Woodseats,<more snippage>

For £100 K???? I know the market is dropping but a traditional family home in any of those areas is unlikely to be an option with that budget.

Hehe, you have a point because I missed that bit. Apart from that, the advice is sound :D

what makes you such an expert???????? :loopy:


Forget it. This is a very bad time to buy property for investment, unless you're looking for virtually no profit for a very long time. You could certainly buy cheaply now while the market is so low, and when prices go up, as they inevitably will in the long term, you'll make some capital gain. However, Sheffield has a glut of rental property, and rental income is very depressed. The cost of management and maintenance will eat into anything you make, and you wouldn't cover mortgage payments with rental income.

what makes you such an expert???????? :loopy:

Could be one of several things:

(1) The ability to read a newspaper;
(2) Having paid any attention whatsoever to the sale prices of houses in the local estate agents;
(3) Having paid any attention whatsoever to the number of "for rent" adverts that stay up for long periods of time.

That's just off the top of my head. There are probably others. Anyone who's managed to do any one of them would be at least as big an "expert" as she is.

You apparently haven't.

Could be one of several things:

(1) The ability to read a newspaper;
(2) Having paid any attention whatsoever to the sale prices of houses in the local estate agents;
(3) Having paid any attention whatsoever to the number of "for rent" adverts that stay up for long periods of time.

That's just off the top of my head. There are probably others. Anyone who's managed to do any one of them would be at least as big an "expert" as she is.

You apparently haven't.

Thank you Heyesey :-)

the key to renting is location, price and quality. If you get those three right you don't have a problem renting a house out.

At the moment there are some bargains to be had if you look hard enough.

Your comments are flippant and too generalistic. An investor isn't buying the market just one good rental property.

Landlords who provide shabby accomodation don't deserve to have an easy ride.

Could be one of several things:

(1) The ability to read a newspaper;
(2) Having paid any attention whatsoever to the sale prices of houses in the local estate agents;
(3) Having paid any attention whatsoever to the number of "for rent" adverts that stay up for long periods of time.

That's just off the top of my head. There are probably others. Anyone who's managed to do any one of them would be at least as big an "expert" as she is.

You apparently haven't.

Could be one of several things:

(1) The ability to read a newspaper;
(2) Having paid any attention whatsoever to the sale prices of houses in the local estate agents;
(3) Having paid any attention whatsoever to the number of "for rent" adverts that stay up for long periods of time.

That's just off the top of my head. There are probably others. Anyone who's managed to do any one of them would be at least as big an "expert" as she is.

You apparently haven't.

Dont belive everything you read in the newspapers. The rental market for family housing is still very good. City centre flats have had their day but traditional housing on normal everyday estates are still in demand.

best place for investment property?

London.

100k should get you a garage, possibly a double outside the M25

Forget it. This is a very bad time to buy property for investment, unless you're looking for virtually no profit for a very long time. You could certainly buy cheaply now while the market is so low, and when prices go up, as they inevitably will in the long term, you'll make some capital gain. However, Sheffield has a glut of rental property, and rental income is very depressed. The cost of management and maintenance will eat into anything you make, and you wouldn't cover mortgage payments with rental income.

I totally agree! I got out of the private rented sector until 2004 when I sold out. Before then my Student portfolio was making 15%+ return on the overall investment. I sold out for 8% yeild making a significant profit (Student propertys are more work and higher yielding than normal residential which are around 5%). Seeing as interest rates for buy to let are high at 7% (if your lucky with the credit crunch) and it costs you usually 2% to maintain a proeprty per annum then whats the point in paying your own hard earned cash to provide a house for someone to live in?

Fair enough if property prices were set to rise but if banks are not prepared to lend there is less availabilty of funds chasing property and as inflation is currently out of control and set to get worse then interest rates are only going to go one way... up! Higher interest rates means proeprty is less affordable and then prices must correct.

Personally I think there is a considerable correction on the way. Rents have not risen for years and property prices have risen far too rapidly for years they need to meet in the middle again and there must be profit in renting otherwise whats the point?

There has been a property gold rush caused by all the TV shows and media, its all very well while its going up but give it a few years and you could well be glad you did not jump in with the sheep.

Rental properties are always popular around hospitals etc. Nurses and other low paid key workers always need somewhere to live close to work. If you are looking at this as a long term investment buying in one of these areas should be a winner regardless of whether prices drop further in the short term. You will be almost guaranteed a tenant and you wont be dealing with students. Areas around the Northern General tend to be cheaper to buy in the first instance. Do some homework and find out if being a landlord/lady is really for you and your finances.