I was away over the May Bank holiday weekend
with family and friends at North Berwick – nothing like a bit of sea air to
re-charge the batteries! We played many
board and card games! One of the board
games we played was Monopoly (the original one, not the fancy new ones you get
with card readers) and I had actually forgotten how much fun it was and
secretly how competitive I am. Yes it’s just a game but I had a game plan (buy
everything I land on except the Stations and the Utilities!).
Having a game plan is key when investing your
money in a Bo’ness property.
All landlords are different in the way they play the property game. Some landlords prefer to accept a modest yield/return on their investment for an increased certainty of finding a quality tenant. Other landlords are interested in high returns, with a greater risk with regards to the quality of the tenant. Before you start playing, it is a good idea to have a game plan.
For a low risk investment, you could buy property in the areas of the Drum and Birdland Avenue which are perceived as being more desirable, where you may be able to achieve an annual yield of around 5-6%.
All landlords are different in the way they play the property game. Some landlords prefer to accept a modest yield/return on their investment for an increased certainty of finding a quality tenant. Other landlords are interested in high returns, with a greater risk with regards to the quality of the tenant. Before you start playing, it is a good idea to have a game plan.
For a low risk investment, you could buy property in the areas of the Drum and Birdland Avenue which are perceived as being more desirable, where you may be able to achieve an annual yield of around 5-6%.
If you don’t mind a slightly higher risk of
void periods or a more varied quality of tenant, you are likely to be rewarded
with a higher annual yield of 6-8%. This level of risk can be typically taken
with properties in the streets around Castlehill and Grange Terrace, I am happy
to discuss and outline specific streets in these areas.
If you are after annual yields of 8% and
over, you could take more of a risk with properties in other part of Bo’ness,
for example in Grangepans and Links Road where a fair few tenants are relying
solely or mainly on benefits. Many
landlords shy away from these sort of properties because they ‘can’t be
bothered with the hassle’. However, they
are worth considering. Sure you can get
bad tenants that are on benefits but you can get bad tenants that are not on
benefits ..... and, as I have mentioned in a previous blog, far, far more tenants
are on housing benefit that you may think.
Do not get me wrong, there are specific risks with tenants who rely
solely or mainly on benefits – mainly around getting paid! – but I have proven strategies
to reduce these risks that I would be happy to share with you.
As always, if you would like to send any deals you have seen online over to me or you would like to have a chat, feel free to pop in to our office at 19 Main Street (next to Tesco and opposite Lidl), email me on news@thekeyplace.co.uk or call me on 01506 828096.
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