Top 10 locations in the UK for under £50K
People are often surprised to hear that there are still large parts of the UK where you can buy properties for under £50,000. People buying houses at this level are usually doing it to achiev...
People are often surprised to hear that there are still large parts of the UK where you can buy properties for under £50,000. People buying houses at this level are usually doing it to achieve a high yield on their investment. Typically, if you were investing at this level you should be looking to achieve a yield of no less than 10.5%.
Properties worth below £50K are often more difficult to mortgage, which creates some great opportunities for cash buyers. By spending relatively small amounts of money on things like central heating and double glazing, or carrying out a fairly basic refurbishment, a previously non-mortgageable property will rise in value and can be brought back into the general market for a decent uplift.
Because the property is now valued at over £50K, re-financing to a 75% LTV BTL mortgage should mean as an investor you are able to pull back most of your cash. You can then repeat the process, re-cycling your cash ad infinitum.
If you don’t qualify for BTL finance, but have around £50K in cash, buying properties at this level could be a good BTS strategy because above the £50K threshold, the availability of finance creates a greater marketplace to sell on at a profit. However, you should still be mindful of the ‘six-month guideline’ as it applies to the potential vendor.
We have done our research and devised a list of our top 10 locations for buying property under £50K:
5. Stoke on Trent
10. St Leonards on Sea
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