Rental Property Investment In Liverpool
Liverpool is a vast city with a long history and a large population. As you would expect there are property markets within markets and as an investor you need to understand the difference between them all when investing in a rental investment property in Liverpool. Property Investment in Liverpool, covers a large spectrum of property type as you would expect of such a large city. You have lots of city centre flats, you have some detached property, you have a good number of semi detached, but in the main you have rows and rows of terraced houses. Check out my article on the insight into the Liverpool property market.
Personally, I would avoid the city centre of Liverpool. In my experience city centre flats, have suffered from oversupply and tenancy’s tend to be of a relatively short duration. And as new flats are being built all the time in Liverpool, your investment property can very quickly look ‘old fashioned!’
Don’t worry though there are plenty of other rental investment property in Liverpool. Broadly speaking, the north of the city has lower value stock, where you will get higher yields and the south of city the opposite, higher value stock with lower yields. So it all depends on your current situation and needs to where you place your investment.
Typically in the north of Liverpool, you can pick up terraced investment properties for circa £60,000 requiring minimal work, letting agents will rent out these properties for £450 PCM. In the south of Liverpool, expect to pay circa £120,000 and your typical letting agent will be renting this kind of property out for circa £600. Letting agents will be able to find suitable tenants for you and manage the property on a month by month basis for a monthly fee.
Apart from price, if you speak to local letting agents in Liverpool, they will tell you, there are other differences between the north and the south Liverpool property investment market. rental investment property in the north of the city is more problematic, as this area of Liverpool is more deprived so getting deposits (remember it is now a legal requirement that all deposits are registered in a scheme) is more difficult which increases your risk as a landlord.
That said, Investing in rental property in Liverpool (the north of the city) has been very good for me, however I really understand the Liverpool property investment market and what to watch out for. If you are going to purchase an investment in the north of the city, invest in a good letting agent, someone who knows the market well. If you try and operate the typical approach (1st months rent and deposit), you will probably have an empty property for a long time in the north of Liverpool. This is why many investors who invest in Liverpool property investment market get in wrong. They think the same rules apply in all parts of the country, but they don’t!
Remember one bad experience with a tenant can cost you thousands of pounds, so having a good letting agent on board is pivotal in my opinion. When investing in a rental property in Liverpool, a good letting agent will cost you on average £1.50 per day! However, here again, you should not rush in and pick any letting agent in Liverpool!! Make sure the agent knows the north of the city well, as I said at the start there are markets within a markets! Don’t let anyone take control of your investment property and leave you empty handed at the end of the month.
What’s the point finding a bargain of an investment property, which is then mismanaged by a letting agent or yourself, causing you lots of distress and frustration and may mean that you even sell the property for a loss. Buying the property is almost the easy part, the day to day management is the tricky part.
When handled correctly that first investment property in Liverpool can lead to a second, third and fourth investment property, which is exactly how I got started. By managing my investment properties in Liverpool correctly it helped me increase my cash flow and ultimately put me in a better position to buy more.
Isn’t that really the best person to manage your investment properties, someone who has direct experience of managing their own investment properties? I have managed my multi million pound portfolio (successfully) for over 10 years. I know I don’t look that old 🙂
Think of it this way, if you want some teeth out or you need to have a serious operation, do you want to use someone who is reading from a text book, or someone who has lots and lots of experience of carrying out difficult procedures? I know which one I would choose.
Property management in Liverpool is very much like this, there are lot of letting agents doing it, but very few who have the long, direct and successful experience at doing it for a number of years….this is your future, do your due diligence on your potential letting agents. Don’t assume all letting agents in Liverpool are the same.
I understand all the different aspects of investing in investment property in Liverpool, it’s second nature to me, whether it be finding tenants (I have vetted hundreds), dealing with repairs (I have renovated in excess of 40 houses), understanding all the procedures required for the smooth running of your property. You name is I have done it!
I have helped so many landlords, turn their struggling investment property portfolio’s around, turning unhappy landlords into happy ones. If you are a landlord , a bad experience can cause you to want to sell your property. That’s a real shame because you maybe throwing your future away, all because your property has been mismanaged by a Liverpool letting agent or yourself.
Some of my landlords have had property investment all over the country and have struggled with voids and empty rooms. We have helped them to find and vet local professionals to help them manage their investment portfolio.
To conclude rental property investment in Liverpool, can be very lucrative, if you select the right partners to work with. If however you decide to invest in Liverpool and either do in yourself or work with the wrong people, it can be the beginning of a real nightmare.
Remember I am always happy to talk to anyone who want to invest in the Liverpool market. It’s far better to consult my advice prior to making a Liverpool property investment, rather than contacting after the event, to handle any subsequent problems!
Happy investing (in rental investment property in Liverpool)!!
Jon Bieri, potential2lettings.
Letting agents covering Liverpool, The Wirral, Ellesmere Port and Chester