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|January 27th, 2013, 10:03 AM||#1|
Join Date: Apr 2008
Likes (Received): 22
Buy to let in Bootle
Bootle the buy-to-let boomtown: Merseyside district tops list of UK's most lucrative areas for landlords
By Lee Boyce
PUBLISHED: 12:00, 24 January 2013 | UPDATED: 16:39, 24 January 2013
Bootle is now the most profitable area of the country for those investing in buy-to-let properties, research reveals.
The Merseyside district offers the best return on investments, with landlords obtaining an annual yield of 8.3 per cent on their initial purchase, data from Home.co.uk has found.
The property website says this is higher than similar properties anywhere else in the country, after it analysed the purchase price and rental income of two bedroom homes in every single town where there are over 100 available to rent. The research found the average house price in the area is £65k, while rents are £451
The typical asking price for a two bedroom house in Bootle is just £65,000 but the average monthly rent is £451 - and this yields the best return over a year.
The home.co.uk top ten list showed that areas considered less affluent may be the best for investors. Just behind Bootle in the table is Plumstead in South London followed by Scottish locations Dundee and East Kilbride.
Localities undergoing widespread regeneration such as Plaistow and Newham in East London, which hosted the Olympics last year, are also in the top ten.
Bootle has a history of regeneration itself after it was the most bombed area of Britain in the war because of the vitally important docks.
It is notable as the birthplace of a number of footballers over the years including Liverpool players Jamie Carragher and Steve McMananan and the club's former manager Roy Evans. Benidorm star Crissy Rock, Coronation Street's Craig Charles and comedian Tom O'Connor also hail from Bootle.
TOP TEN LOCATIONS FOR TWO BEDROOM HOME RENTAL YIELDS
Location No 2 beds for sale Typical asking price No 2 beds for rent Typical rent % Rental yield
Bootle 285 £65,000 238 £451 8.3%
Plumstead 163 £185,000 105 £1,213 7.9%
Dundee 325 £85,000 233 £524 7.4%
East Kilbride 237 £70,000 106 £429 7.4%
Plaistow 192 £192,500 227 £1,148 7.2%
Hamilton 296 £80,000 165 £477 7.2%
Camberwell 113 £235,000 141 £1,400 7.1%
Brentford 108 £327,500 441 £1,950 7.1%
Newham 144 £180,000 133 £1,049 7%
Dagenham 171 £163,000 161 £949 7%
Affluent areas of London are the worst places for buy-to-let
The study by home.co.uk also showed that affluent areas are the worst places for those trying to get into the buy-to-let market.
In simple terms, if you spend £100,000 on buying a two bedroom house and then make £7,000 a year from renting it out, the rental yield is seven per cent.
The poorest returns on investment are in the richest parts of London, including Mayfair, Bloomsbury, Soho, Charing Cross, Chelsea and Knightsbridge.
Rents are the highest in the country but so are property prices and the profit from renting out flats in these areas has slumped by 33 per cent in the last two years.
While renting out a flat in Dagenham will net a landlord seven per cent a year on their initial investment, doing the same in Belgravia returns just 2.4 per cent.
Home.co.uk director Doug Shephard said: ‘Investors in the rental property market really need to research their chosen location carefully in order to maximise potential yields.
‘These top gross rental yield locations are highly attractive to buy-to-let investors, however many other locations are not.’
What conclusions can been drawn from this Daily Mail article?
PS Apologies that the table in the article has not reproduced the grid - see the original article.
|January 27th, 2013, 10:45 AM||#2|
Join Date: Dec 2008
Likes (Received): 33
The only conclusion I can draw is that our housing market is in crisis. These districts contain places that should be prime first time buyer territory. There are too many people now who just cannot buy even in the most ordinary areas, because they have no family money or inheritance, and the money they would be saving for a desposit is going on ridiculous levels of rent.
I wonder which political party if any will be brave enough to admit that the market is bust and unfair and offer radical reform? I think such a party would do very well with people aged below 40. As for older owners sitting on big potential capital gains, well we need a national debate about what is fair and reasonable, as the current situation is unsustainable.
|January 28th, 2013, 02:20 PM||#3|
Let the Jam decide
Join Date: Oct 2003
Likes (Received): 26
More owner occupiers is the way to go, it's more long term and people personally invest in their neighbourhood more.