to propertydata . co . uk ) is 4.75 %. In the regions where we operate , we get yields typically 5.5 % - 7 %.
We focus on Manchester , Liverpool and Birmingham where average house prices range from £ 220K ( Liverpool ) to £ 286K ( Manchester ) to £ 263K ( Birmingham ). In general investment properties are significantly cheaper than the average .
These cities are major UK cities and have many reasons for rental demand and future capital growth . There are other areas where you could get a slightly higher yield , but they tend to be in tired third tier areas with low prospects . We advise buying in major cities with good rental returns and future prospects . Manchester and Birmingham are considered the two second cities after London and are booming .
Liverpool is a short hop from Manchester and benefits from being part of the ‘ Northern Powerhouse ’ economic area . Birmingham and Manchester are destinations for HS2 which is the new UK High Speed rail service from London to Manchester . HS2 will open in 2030 and will reduce the travel time from Manchester to London from 2 hours to under one hour .
While most of our purchases for clients are for single let ( BTL ) property we also operate a ‘ HMO Builder ’ service where we turn suitable terraces into HMO ( houses of multiple occupation ) houses where each individual room is let out . This is a way of extending even further the return from a property although there are more upfront costs . Typically returns are 10 %+ for our HMOs . Please note we only deal with ‘ best in area ’ HMOs which are finished to a high standard with planning & HMO license .
Please be very careful with HMOs ( i . e . if you find one from Rightmove directly from a seller ) as there are many illegal and poor quality HMOs in the UK .
At Property Fit we mainly deal with overseas investors and because of this we operate a ‘ one stop ’ property investment service . Our sourcing company is called Property Fit , our maintenance company is called Bradwell Maintenance and our lettings company is called @ ThePlace .
We all work in the same office and over the 3 companies we have 20 directly employed staff who are specialists in their fields of work . Because of the companies working together we have no gaps in our service and our team manages all aspects of sourcing , maintenance and ongoing management . It is quite unusual for a sourcing company to genuinely offer these services in house .
Many other sourcing companies claim to manage the maintenance and lettings but often contract that out to other companies . We do it all ourselves . Our overseas investors really like this approach as they can trust us to truly manage the whole process with our own staff .
We cannot give any mortgage advice ( as we are not qualified to do so ) but we have an excellent mortgage broker that the founder of Property Fit has used for 15 years . We can share these mortgage details on request . This mortgage broker is a specialist in helping overseas investors andalready works with many South African property investors buying in the UK .
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SA Real Estate Investor Magazine APRIL / MAY 2023 14