Advice on where to buy to let

[Tony 10]

Err... there are developments that have up to 500 beds.

[t020 11]

Originally posted by vision

Tony, I'm wondering which apartments you are meaning - perhaps the new student halls? Certainly flats in the new private complexes like West One, Royal Plaza and West Point start around £590 pcm per 2 bedroomed flat (with leccy on top) which is considered too pricey for most students.

 

£590pcm /4 = £147.50 a week.

2 bedrooms, so a minimum of 2 students in the flat, splits the rent to £147.50/ 2 = £73.75 a week each. Tony said £70 a week... hardly a million miles off now, is it?

[Cyclone 10]

still, with what 36k students I can't see Crookes and Broomhill being emptied overnight. Especially not when they can compete effectively on price.

[Tony 10]

Maybe not, but the original question was on buy to let location advice. I advised not to buy in certain areas based on experience and market knowledge. Purchasing an investment property is a long term plan, and it's easy to lose money if you get it wrong. I was only trying to help!

[Cyclone 10]

i know, wasn't having a go. I just think you might be overestimating the impact these new flats will have on the established let-to-students areas.

 

In a few years time we'll probably move and keep this house to let, although hopefully to ex-students. There still seems to be a strong rental market at the bottom of walkley.

[Dug 10]

You're talking about 2 different groups though. I've heard that landlords renting to students with properties at Banner Cross are finding it difficult to fill them. The further down Ecclesall Road towards town, the more likely that you'll be able rent to students.

 

Regarding professionals, I guess that that they would be more interested in houses a little further out. Although I live at Hunters Bar and there seems to be a few properties, which are normally rented out to professionals/graduates etc., that have been vacant for a while. It may be that people renting are demanding a higher standard of property, i.e. decent new kitchen/bathroom, nice decor etc?

[vision 10]

Message for t020 - I don't take your point! I was neither agreeing nor disagreeing with Tony, merely making a statement about general costs. I think Tony can make his own comments!

 

Thanks to everyone else who has made relevant comments.

[1Man&hisBMW 10]

Heres some Victoria hall facts...

 

Double room (most of them in a flat are)

 

£71 / week (36 week contracts)

Internet £150 / year Broadband

£225 / year towards electricity

 

House around 480 students.

 

There isnt anything wrong with these places, they are secure and well maintained.

 

Student houses though are still popular forms on investment, and even though the investors buying generally let ar around £45 - £48 per week / student in a house of 3/4 srudent which most are thats an average of around say £160/week in rental. Or a monthly of £660. (usually 40 week contracts)

 

Those properties in Crookes are around £105k to purchase. Which is essentially on a 5.25% interest only mortgage will pay £5500 a year in interest (on the full £105k)

 

Some student properties just seem to be paying themselves off, alot of the smaller investors rely on the capital gain in value, which is why at this time alot of investors have brought them to the market to sell. ie. bought the properties 4 years ago at £80k, and stand to profit by £25k.

 

Its worth doing still, but you just have to find that gem.

Alot of it depends on how much you are willing to invest into it and how much you want to make in payments.

 

Financial circumstances will of course make a big difference between making it viable or not.

[1Man&hisBMW 10]

Oh and I have to add....

 

Sheffield City Council are looking at regulating the number of student houses in residential areas now.... amazing what the big PLC's making those big blocks can push through isn't it - the residents have been banging on about it for years, the council introduced.....parking permits.

 

Okay, now the big PLC's are offering alternatives.... we will probably see the student market up in the private sector decline a little..... so the council moves in to shaft the investor.

 

Victoria Halls, Unite PLC are the big players in students accomodation in Sheffield, but equally are trying to tie up with the universities to develop their sites aswell, to accomodate more students.

 

For example, try this out for size..... starting noisy ground works in May when most students are preparing to take their end of year exams! (yes thats the one, on wellington street - disrupting about 900 students!) - makes me wonder sometimes why the council gave the go ahead to make a start at a critical time for most students in their academic year.

[Tony 10]

Originally posted by 1Man&hisBMW

Oh and I have to add....

 

Sheffield City Council are looking at regulating the number of student houses in residential areas now.... amazing what the big PLC's making those big blocks can push through isn't it - the residents have been banging on about it for years, the council introduced.....parking permits.

 

It's not that PLC's have any more weight, in fact it's the local developers that do most of that.

 

Originally posted by 1Man&hisBMW

Okay, now the big PLC's are offering alternatives.... we will probably see the student market up in the private sector decline a little..... so the council moves in to shaft the investor.

The small investor just has to up the game. It's a dog eat dog world. Yes though, the small student house investor will suffer. That's not the Councils doing though.

 

Originally posted by 1Man&hisBMW

Victoria Halls, Unite PLC are the big players in students accomodation in Sheffield, but equally are trying to tie up with the universities to develop their sites aswell, to accomodate more students.

You're a couple of years out of date on that one.

 

Originally posted by 1Man&hisBMW

For example, try this out for size..... starting noisy ground works in May when most students are preparing to take their end of year exams! (yes thats the one, on wellington street - disrupting about 900 students!) - makes me wonder sometimes why the council gave the go ahead to make a start at a critical time for most students in their academic year.

 

Again, nothing to do with the Council. This is the time of year that things start because of the completion dates needed for Autumn intake next year. Anyway, have you tried closing the window?

[1Man&hisBMW 10]

Originally posted by Tony

It's not that PLC's have any more weight, in fact it's the local developers that do most of that.

 

 

The small investor just has to up the game. It's a dog eat dog world. Yes though, the small student house investor will suffer. That's not the Councils doing though.

 

 

You're a couple of years out of date on that one.

 

 

 

Again, nothing to do with the Council. This is the time of year that things start because of the completion dates needed for Autumn intake next year. Anyway, have you tried closing the window?

 

 

 

Okay, I cant say I agree with you!

 

PLC's do have alot of weight, because in developments, (such as student accomo as we are discussing) they are the financiers in most cases - the people who are pushing in the cash, and the council is welcoming that cash with open arms as its also aiding in redevelopment. The local developers might be the ones who push their weight around with the council a bit, but ultimately, if the big firms who want the blocks didnt also use their muscle, (I know Unite have done this - infact they took out a full page advert in a financial magazine to advertise who was backing them financially to the tune of £500m). What I am saying is, the developer and the owner in this case are the same - the contrator who builds may of course be different.

 

It will be the councils doing if the smaller investor suffers - I was suggesting that if legislation is brought in, they will suffer - the council will be the ones bring the legislation. Residents will be happy, investors maybe not so. Can't up your game if they won't let you let to student - period.

 

Couple of years out of date on which one? As far as I am aware there are still minor contractual works being undertaken to pass over University owned accomo' to private companies.

 

As for the noise, and time the construction started I can see the need for starting the build on time, to complete on time - but I'm sure they could have taken this into account. I dont think you would appreciate being told to close your window when its so hot inside either!

[rossyl 10]

Originally posted by DannyBoy

that families and couples are being forced out of the areas by people buying to let (and student parents buying for their little darlings).

 

ooooh bitterness.

 

Say I can afford to spend £150k on a 4bed house.

 

Me doing this allows my child to save £5,000+ over two years. I also make £15k from the other three tenants.

 

The 15k could make all if not near all the mortgage.

 

AND ...after two years of ownership the property has actually gone up say £6-12k.

 

Now would that be "buying for a little darling" or a pretty good investment?