The buy-to-let em­pire that’s yours for £590k

18 North East homes that make £74,000 a year in rent

Daily Mail - - News - Daily Mail Re­porter

Estab­lish­ing a prop­erty em­pire can cost wouldbe ty­coons tens of mil­lions.

but those hop­ing to make waves in the buy-to-let mar­ket now have the chance build up their port­fo­lio for far less – af­ter 18 homes were put on sale for a to­tal of £590,000.

the ter­raced and semi-de­tached prop­er­ties in the north East of Eng­land have an av­er­age price of £32,000 – around one-sev­enth the value of a typ­i­cal English home.

Each house has two bed­rooms – and all but one is cur­rently let out to ten­ants, bring­ing in rev­enue of £74,000 a year.

this is a po­ten­tial yield of al­most 13 per cent – a bumper fig­ure for a let­tings port­fo­lio.

the homes are spread across County Durham and sunderland, and will go un­der the ham­mer in lon­don on septem­ber 25.

Robin howe­son, di­rec­tor at sav­ills auc­tion house, said: ‘the seller has put the port­fo­lio to­gether and let them out so the hard work has al­ready been done.

‘so you would be buy­ing 18 prop­er­ties which make £74,000 per year. that is a yield of around 13 per cent, which is re­ally good. You won’t get that sort of re­turn from a bank and you would strug­gle to get a sim­i­lar yield any­where else.’

he added: ‘i’ve worked in auc­tions for ten years and i can’t re­mem­ber com­ing across an­other op­por­tu­nity like this.

‘the homes are ba­sic but you are get­ting a port­fo­lio of 18 houses for the same price as a two-bed­room home in toot­ing in south lon­don. it is a fan­tas­tic in­vest­ment.’ how­ever, would-be prop­erty mag­nates who think let­ting is a ‘ magic money tree’ should think twice be­fore rais­ing their auc­tion pad­dle. land­lords face a num­ber of costs, in­clud­ing in­sur­ance and main­te­nance fees.

if the prop­er­ties are man­aged, they will also have to pay the let­ting agent around 10 to 15 per cent of the rent.

land­lords have also been tar­geted in re­cent years by the gov­ern­ment, which in­tro­duced a 3 per cent stamp duty sur­charge.

Homes un­der the ham­mer: The ter­raced and semi-de­tached homes in Sunderland and County Durham all have two bed­rooms

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