The buy-to-let empire that’s yours for £590k
18 North East homes that make £74,000 a year in rent
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