Page 35 - Redbrik Lifestyle & Property Magazine: Spring 2019

These questions might sound overly simplistic, but they are probably the most important aspect of a successful buy-to-let investment
In most cases people tend to invest in property close to where they live.
On the plus side, they are likely
to know this market better than anywhere else and can spot the kind of property and location that will do well.
LOCALLY I WOULD RECOMMEND:
Chesterfield
- Take a look at properties on Chatsworth Road as well as Brampton and Hasland. Demand for good quality rental properties is always high here.
Sheffield
- Properties in Meersbrook and the S8 postcode offer excellent capital
appreciation and a great return on investment if you decide to sell.
- City centre apartments are always a great investment option as
they command consistently high rental fees and require very little maintenance.
- The S20 postcode area is popular with everyone from young professionals and families alike, which has created a high demand for rental accommodation.
BUY-TO-LET INVESTOR CASE STUDY
We were approached by a client who had inherited a three bedroom bungalow in Walton. Their wish was to let the property to provide a monthly income. The property required some improvement, including a new kitchen and bathroom.
If the bungalow was refurbished (at a cost of say £15K) the rental income would have been around £700 PCM,
– however the sale price in its current condition was around £250,000. This would only provide a yield of 3.2 per cent.
We advised the best option would be to sell the bungalow and use the money to buy a further two rental properties where the return would be higher.
The client took our advice, sold the bungalow for £253,000 and used this money to buy an apartment and a terrace house in Brampton. We then let both properties and the combined rental income was £1150 PCM.
This increased the potential return to 5.5 per cent which was a far better use of their asset to generate more income.
Our client was extremely happy and said they appreciated our accurate advice as it all worked exactly as we predicted it would.
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LETTINGS