Liverpool · Merseyside · Wirral
Buy to Let Liverpool
Buy to Let Liverpool is a popular property investment strategy in the UK. Liverpool property offers a high rental yield with capital growth over the medium to long-term for the astute buy to let investor.
Liverpool has witnessed a significant revival in recent years and is now considered one of the best cities in the UK for property investment.
Buy to Let Investment Strategy
The options are wide, from Liverpool city centre apartments to traditional 'two-up, two-down' terraced houses, to commercial property and development, both small-scale and large offer opportunities.
Like all property investment strategies, you will need to choose the one which is best for you and therefore research is key, as is picking the right professional partners to work with.
Buy to Let is a Numbers Game
Undoubtedly, buy to let property investment is a numbers game. Every month, you want the rent, less the costs, to be a positive number, not negative. Cashflow is king, particularly when interest rates are rising.
Historical cash-purchase example. The 8% letting fee and other costs below are the original illustration. See our current letting agent fees in Liverpool when assessing a purchase today.
A quick calculation:
A terraced house was purchased at a property auction for £66,000. It rents (after review) for £644 a month or £7,728 a year. The gross (or before costs) yield (return) is £7,728 as a percentage of £66,000 = 11.7%
If the property was bought for cash, you would deduct on an annual basis just:
Letting agents fees at 8% = £618
Insurance at £400
Gas Certificate at £75
Total = £1,093
Other costs, spread over a longer period would be electrical certificates, selective licences, EPCs etc and provisions must be made for repairs.
The net yield would therefore be:
(£7,728 - £1,093) as a percentage of £66,000 = 10%
Please note, a true figure return on investment percentage would need to add buying costs, including stamp duty to the purchasing price.
The 10% figure is rounded and is after only the listed costs. Repairs, void periods, other operating costs, finance and tax would reduce the income retained; buying costs increase the capital invested.
The right property. The right price. Local support.
Find your next Liverpool buy to let property
Our Property Sourcing Liverpool service helps you find and assess opportunities across Liverpool, Merseyside and Wirral, including auctions, repossessions, receivers and genuine off-market properties.
Tell us your budget and what you want to achieve. We can discuss the property, the numbers and the support you need through buying, letting and management.
Property Investment Liverpool
There is a saying in property investment that you make your money when you buy, not when you sell. This is very true and the selection based on:
- Location
- Price
- Yield
- Condition
- Potential to add value
The selection criteria is universal and applies not just to Liverpool, but globally too.
Below Market Value Property
It should go without saying that you should purchase a property for less than it's worth. If you can do that, then you have made your money when you buy, so the saying goes.
Property sourcing Liverpool experts can help you.
