Incredible Opportunities in Liverpool Distressed Property Assets - Latest Client Newsletter
Saturday 12th November 2022
Incredible Opportunities in Liverpool Buy to Let Distressed Property Assets
Liverpool Property Investment
I am presently writing a book about property auctions and distressed assets and finding many similarities with today's market and that back in 2009/2010. You'll have to wait for the book to see examples of properties in London for instance bought at £155,000 and now selling for £500,000 plus and many in Liverpool, Leeds and other places we operated in at that time.
Buy to Let LIverpool
Last Friday, we secured a fully furnished studio apartment in prime buy to let Liverpool city centre for a client. The deal was struck at just £25,000 and will it rent for £475 pcm, though our target by the middle of next year will be £525 to £550. The property is in excellent condition with no refurbishment or renovation costs
Why are there such excellent property investment opportunities?
Another question that will be answered in the book, that we have a perfect storm for those wishing to 'smash and grab' UK properties at bargain basement prices, with rising rents!
As Warren Buffett said, "Be Fearful When Others Are Greedy and Greedy When Others Are Fearful."
There is no better time to invest in property for the medium to long-term than during a recession.
In the example above, the owner was selling a few properties as he needed cash now, not in 3 or 4 months. The post-lockdown economic environment, rising interest rates, business failures and sentiment will create the best opportunities in UK real estate for 12 years or so. Combined with rising rents, property investment in Liverpool is the perfect hedge against 10.1% inflation.
Our active distressed assets client list is almost full. Once it is, we will not take any more clients until investors begin to drop off due to their requirements being met in full. If you wish to join, then please let me know, as 2023 will be a cracking year for the astute investor.
Rents
For those who have been in contract with tenants for some time, we are undertaking rent reviews as contracts come up for renewal. In some cases, such as One Wolstenholme Square in the city centre we seem to have cracked the £600 pcm rent on the latest studio to let in Block C. That's an increase of 9.1% which is excellent and keeps you in line with inflation. The tenant is paying 12 months' rent up front up front which is also a good indication of a strong market.
Rental Guarantee
The UK is in recession, though the official economic data is yet to catch up. I would emphasise the importance of the rental guarantee product we provide, as a tool to manage risk moving movement.
Tenants who pass our rigorous referencing checks do so with their current circumstances. It's a bit like a balance sheet, as at a particular date. We do not know if that tenant's job will disappear in 4 months? The rental guarantee protects you from that.
If you want to discuss any of this, then please call or e-mail
Liverpool Property Investment
