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Hi,

 

Apologies if this has been asked before here on this forum. I am looking to invest in Sheffield and it would be great if I could have some opinions/suggestions from any investors on here please. Having spoken to a few estate agents, the names that come up as having good rental demand for working professionals with decent returns, are Woodhouse, Handsworth and Intake. Any other areas I could consider? Any streets to avoid in these areas?

 

Thank you!

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That's interesting. I wouldn't have thought those areas appealed particularly to "professionals" (cue abuse hurling from those with chips on their shoulders). I suppose they're all decentish areas where you can buy property cheaply, which might explain it as the yields will be ok. That's the thing with renting/buying: the difference between sale prices of more expensive and less expensive areas is relatively greater than the difference in rents.

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Is there any money to be made in BTL at the moment, I seriously doubt it.

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Yeah, that is where I am stuck at the moment..finding a right area where numbers stack up is a bit hard..

 

money to be made in BTL - definitely doesn't look as lucrative as it used to be in the past, but historically speaking, property has always been a safer investment bet, so I am going to try it. Who knows what the next regulation changes in the rental sector is going to be?

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Yeah, that is where I am stuck at the moment..finding a right area where numbers stack up is a bit hard..

 

money to be made in BTL - definitely doesn't look as lucrative as it used to be in the past, but historically speaking, property has always been a safer investment bet, so I am going to try it. Who knows what the next regulation changes in the rental sector is going to be?

........whatever the changes are, rest assured they will be weighted more and more in favor of the tenant than the would be Landlord/investor.

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Yeah, the government have made life and profit consistently harder for the small landlord over the last 5 years.

I'd suggest that there's a safer and easier return available through several more traditional routes, the ftse100 or 250 for example have always been a safe investment bet over the long term. A quick google suggests an average return of 5.4% over the last 20 years on the ftse100.

 

More modern options would include p2p lending, through zopa (very low risk, 4% return) funding circle (marginally higher risk, 6 - 7 % return) or many other providers, some of which can offer a 10% return, but at higher risk.

 

https://www.fool.co.uk/investing/2014/10/24/the-ftse-100-will-always-beat-you/

 

http://stockmarketalmanac.co.uk/category/long-term-2/

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How about a micropub? About £6-£10k to kit out a place, turnover around £4k a week, depending on location and footfall. Many who've been in the business a year or two are now looking to open their second or third.

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How about a micropub? About £6-£10k to kit out a place, turnover around £4k a week, depending on location and footfall. Many who've been in the business a year or two are now looking to open their second or third.

 

Where did you get those turnover figures of £4k a week from?

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I am looking to invest in Sheffield and it would be great if I could have some opinions/suggestions from any investors on here please. Having spoken to a few estate agents, the names that come up as having good rental demand for working professionals with decent returns, are Woodhouse, Handsworth and Intake. Any other areas I could consider? Any streets to avoid in these areas?

 

I've had good success with letting to professionals in Handsworth and Waverley. The new build type houses on there go for premium rents. I have also had good success with an apartment in St. Paul's Tower, S1 - it goes each year to a [different] foreign student pair who pay for the year up-front (that's why I mentioned foreign, as you can't reference them so their mum and dad just pay for the year).

 

All that said, recently I have moved my sights towards the lower-end. By that I mean modest 3 bedroom terraced houses that require a bit of TLC and I get them done up to a very pleasant standard and let them out to people who are less likely to be as upwardly mobile. Hence longer tenancies (which everyone says they strive for). The basic maths numbers (which I don't employ, really, myself) provide better yields at the lower end (lower end != slums!).

 

I would not use the local estate agents myself (I've tried many of them)... and I am also not a fan of what I call "absent Landlords" as I think they give the profession (anyone can laugh at that if they want, I don't mind) a bad name... so your post rang a warning bell for me... someone from outside who just wants to invest here..? Nah... come live here, do your bit... don't select us as good money-making opportunities (keep it local). ;)

 

---------- Post added 05-07-2018 at 13:59 ----------

 

Is there any money to be made in BTL at the moment, I seriously doubt it.

 

Your doubts, of course, would be way off the mark :) but no matter.

 

---------- Post added 05-07-2018 at 14:01 ----------

 

Who knows what the next regulation changes in the rental sector is going to be?

 

Three year minimum tenancies? Abolishing the Section 21? More tax? Mandatory Electrical Safety Certificates - along the lines of the GSC?

 

All of the above? More?

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How about a micropub? About £6-£10k to kit out a place, turnover around £4k a week, depending on location and footfall. Many who've been in the business a year or two are now looking to open their second or third.

 

another cupcake bubble waiting to burst:roll:

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I've had good success with letting to professionals in Handsworth and Waverley. The new build type houses on there go for premium rents. I have also had good success with an apartment in St. Paul's Tower, S1 - it goes each year to a [different] foreign student pair who pay for the year up-front (that's why I mentioned foreign, as you can't reference them so their mum and dad just pay for the year).

 

All that said, recently I have moved my sights towards the lower-end. By that I mean modest 3 bedroom terraced houses that require a bit of TLC and I get them done up to a very pleasant standard and let them out to people who are less likely to be as upwardly mobile. Hence longer tenancies (which everyone says they strive for). The basic maths numbers (which I don't employ, really, myself) provide better yields at the lower end (lower end != slums!).

 

I would not use the local estate agents myself (I've tried many of them)... and I am also not a fan of what I call "absent Landlords" as I think they give the profession (anyone can laugh at that if they want, I don't mind) a bad name... so your post rang a warning bell for me... someone from outside who just wants to invest here..? Nah... come live here, do your bit... don't select us as good money-making opportunities (keep it local). ;

 

----------------------------------------------

 

Thanks for your inputs Hippogriff! Very much a Sheffield person..just at the initial stages of the 'property career' and hence the questions. Kind of agree with you on not getting much out of estate agents, but have to be on good terms with them to get the first few good deals and hopefully soon I will be able to cherry pick the ones I want to work with. Would be interesting to know where your lower end terraces are, if you are ok to disclose.

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...but have to be on good terms with them to get the first few good deals.

 

This is very much not the case. An Agent doesn't work for you, the Buyer, in the process... they work for their customer, the Seller... there is no incentive for them, whatsoever, to help you get the first few good deals. If you follow it through logically, their intention (if on a %age) is to get you to pay the highest price possible.

 

Don't look for help from Agents... to get good deals you [sadly] often need to be opportunistic... and that means finding a Seller in some form of 'distress'... like, they're about to lose their home due to failing to keep up with the mortgage and think it's better to sell and get what they can rather than suffer a repossession, or they're being forced to move out of the area for work / family reasons or there has been a relationship breakdown and two parties must dispose of their asset, or - finally - when you sort properties by how long they've been on the market (longest first) and see if you can find someone frustrated just enough to jump at an offer. Brilliant deals can often be made there. The other alternative is to take advantage of quiet times of year, it's better to go looking early in the new year (my experience) when it's dim and wet and no-one is thinking of buying property. What is implied by all this is many hours travelling and viewing... and negotiating.

 

Handsworth and Cudworth (Barnsley)... but that's the thing about Sheffield and South Yorkshire, they're not exactly lacking as a type of home. I like the good solid little terrace. If you can get one with normal incline stairs and a front door that doesn't open up onto the living room so much the better.

 

They nearly all have the same layout at the end of the day. There's not many variations.

 

Pleased to stand corrected on the investment angle / your location etc..

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