I met up with a friend this week who is also a landlord. He is from the south west part of the country and also uses the services of a professional managing agent to manage his portfolio. As we were talking, over some light lunch, the subject had to come up and so we obliged. My friend told me how he was going to rely on his property portfolio to save himself from pension oblivion. This of course got me thinking so I thought I’d share those thoughts with you below.
This 6 bed semi is situated at Broadway North (Nr. Arboretum Park), Walsall, WS1. On the market with Acorn & Co (01922 312060). Priced at £250,000. Full details can be found by following the link below:
http://www.zoopla.co.uk/for-sale/details/photos/38476827
This property which has just come on the market as of yesterday (23/10/15), made me think…hmm…maybe one as a HMO (House in Multiple Occupation)? Looking at the yields by making some minor changes (i.e. fire doors, alarms, locks and possibly some furniture) we are looking at minimum yields of 10.6%. Personally, I would make some further changes looking to achieve an even healthier yield of around 14.1% and upwards with minimal outlay for maximum returns. But is all as rosy as it looks….???
A Walsall landlord who manages a portfolio of properties called me after reading my Blog. He was concerned about the Walsall Property Market where he has 4 properties and after the recent changes he is considering whether to exit the market by selling the portfolio. We discussed many things but mainly he wanted to pick my brains and thoughts around what he called the crisis in the market. I’m a glass full sort of guy so where others see ‘doom and gloom’, I only see opportunity.
It was only last summer the soothsayers were predicting the end of the world over the supposed house price bubble that many believed was developing in the West Midlands, including the Bath Property Market.
Investing in property is essentially different from investing in stocks and shares or putting money in the Building Society. Whilst these other investments (Building Society Passbooks, Stocks and Shares etc) are passive i.e. once the money has been invested it you leave it alone, with BTL, things are more hands on, in fact it’s almost a business!
One thing the landlords I speak to say is the fact that they like BTL because it is both an investment as well as a business. It is this factor that attracts many of my Walsall landlords – they are making their own decisions rather than entrusting them to others – such as City Whizz Kids in London playing roulette with their pension pots.
Walsall Property Blog 
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