A hands-off investment of four flats in Wavertree, sourced and managed by Homesure Property
The client:
- Landlord in his 40s
- Already owns property in his local area, down south
- Wanted to buy in Liverpool, where he could get much more for his money
- Didn’t have the the time, or the local knowledge, to travel up north and find a property, so he called on the help of Homesure’s investment team
The brief:
- Find a multi-unit property bringing in high-rental yields now, that will benefit from high capital appreciation over time
The story behind Earl Road
This purpose-built block is a mile from Liverpool City Centre, in the ever-popular rental area of Wavertree. This suburb is a perfect fit for our client, because it’s so close to University of Liverpool that finding tenants will never be a problem. If he decides to sell at any point, another investor will snap it up!
Read our property investor’s guide to Wavertree.
The development is made up of four 1-bedroom flats, each with its own private entrance. Every one of the units also has either off-road parking or a garden (that could be converted to create off-road parking); a real bonus this close to town.
With professional, long-term tenants already in-situ, this is a turnkey investment. Should those tenants leave at any point, we’ll have no trouble finding new ones because this area popular with students, professionals and families.
The numbers:
- Our client put down an initial investment of roughly £90,000
- Purchase price: £280,000
- Annual rental income: £28,800, with potential to increase
Capital appreciation is never guaranteed. Always invest in property where today’s rental returns add up, instead of gambling on a possible future sale price. That said, rents aren’t going down. In our professional opinion, they’re likely to go up around 20% in the next five years.
If that projection holds true, those £600 rents will be £720 in five years. If our client decided to sell in five years, to another investor looking for a 10% return, he could expect to get £350,000 for the building.
Chances are that our young investor won’t want to sell in five years. He’ll be benefitting from Homesure’s property management service, and enjoying the healthy monthly returns that come with a well managed portfolio. He may even have drawn out equity, and bought additional properties in Liverpool. If he wants to sell this building 20 years from now instead, he could be looking at a sale price of £450,000 – £500,000.
That’s in addition to the monthly rental yield, and all for an initial investment of £90,000!
Have you got £90,000 to invest (or less, if you’re looking for a 2-3 bedroom rental property)? Is your money working as hard for you as this investor’s is for him?
Property sourcing by Homesure
Instagram is bursting with people offering to source properties for you. So why choose us?
Before you give your money to anyone, ask yourself where they make their money. If all their profits come from your initial deal, or from selling you a training course, they’re not invested in your long-term success. That’s a red flag.
@homesureproperty Your letting agent is an accessible source of expert advice on your next investment property. They know the area, they know the market and they have a vested interest in your long-term success as a landlord! If you’re considering a property investment, it’s never too early to build a relationship with a reputable property management agent. If you’re buying in the North West of England, make that call to Homesure. We can support with investment strategy and property sourcing, if you want us to. Ultimately though, we want to manage your properties – making sure they’re well maintained, comfortable, safe and generating maximum income for you, for years to come. Send us a message for information on our comprehensive, future-proof property management package. #lettingagent #propertymanagement #liverpoolproperty #manchesterproperty #propertyinvestmenttip #propertymanager
Always ask a property sourcer:
- How long they’ve been in the property market
- About the mistakes they’ve made and learned from along the way
- How personally invested they are in the area
- Whether they have a track record of happy customers, who have experienced the outcome you want
- How they will support you if things don’t go as smoothly as you both hope – unanticipated costs arise, circumstances change, etc
As individuals and as a company, we’ve been invested in the North West property market for 20+ years. We also manage thousands of properties on behalf of other investors, and we invest more than just our money into our local communities.
At Homesure, we know that property investment is only successful when everybody wins – the landlord, the tenant and the community – and we want to support you, and your tenants, for the long term. Property sourcing is one step on the path to investment. We’ll be with you for the journey.
Take the first step: book a free, no-obligation consultation with our investment team.
