So you want to become a landlord and invest in residential property and need a little advise or maybe you are already an experienced landlord and just need a reminder or maybe inspiration to make another investment, well read on and have a look at 10 of our best deals this month.
Investors generally purchase property to (a) produce income which, in this market, should produce greater rewards rather than depositing their cash in their bank and/or (b) make a capital gain whether it be over a short, medium or long term.
But how do you decide on the best property choice? Maybe you are not worried about the income (known as the yield to experienced landlords) as you want a capital gain and therefore a purchase which produces a yield of 2% is perfectly fine on the basis the capital value increases. It maybe a purchase in an area with planned regeneration or maybe where there is a DLR extention in years to come and therefore a long term guess as to what could inflate the property values in that area! Or it could be that income is your motivation and fed up that you generate little or no income in other traditional ways such as your bank.
The main benefit of buying a property is you don't actually need the entire cash as you can use someones else's money being a bank or other lender. If you can generate a return of 8%, for example, but you only pay 4% in interest then you are generating an income using someone else's money. Obviously this is before tax and of course there are other associated risks but wasn't this the case when investors had cash in certain banks which failed? These days most investments carry some degree of risk.
So below are some properties which may motivate you. Just to remind you, the yield means that if you had the cash for the full purchase price and rented the property out for market valuation then this is the ultimate return (what a bank would generally call interest rate).
For more information on each property then click on the image and full details will appear!
Charlton Lane, Charlton Purchase Price: £179,995 Rent: £1200pcm Yield: 8%
Valiant House, Charlton Purchase Price: £115,000 Rent: £760pcm Yield: 7.93%
Blackheath Hill, Greenwich Purchase Price: £199,950 Rent: £1250pcm Yield: 7.5%
McMillian Street, Deptford Purchase Price: £215,000 Rent: £1300pcm Yield: 7.25%
Lower Road, Deptford Purchase Price: £169,900 Rent: £1000pcm Yield: 7.06%
Brook Sq, Shooters Hill Purchase Price: £175,000 Rent: £950pcm Yield: 6.5%
Crales Hse, Harlinger Street Purchase Price: £175,000 Rent: £950pcm Yield: 6.5%
Norman Road, Greenwich Purchase Price: £229,995 Rent: £1250pcm Yield: 6.5%
Kidbrooke Village, SE9 Purchase Price: £168,000 Rent: £900pcm Yield: 6.42%
North Park, Eltham Purchase Price: £180,000 Rent: £950 Yield: 6.33%