Practical cases of landlords who suffer owing to the lack of research

Posted under General by Michael

You should take into account a ground level scenario before making a ‘buy’ call. For example, you should be aware of the fact that rents on the Newcastle flat ware down partly owing to the closure of a footbridge linking Newcastle and Gateshead, tripling the walk into former.

Consider another practical example of landlord who did not do his research. He bought three off-plan flats about four years ago - one in Newcastle and two in Manchester. He originally bought them with a business partner, who happened to pull out of the deal before completion owing to debt problems, leaving the hapless landlord to carry on alone.

When they made their purchases, a rosy picture of the rents they could get was painted. Although the landlord planned to invest long term, the rent well fell short of his mortgage payments, and he was forced to sell the Newcastle property for avoiding repossession at a much lower value, resulting in substantial losses.
The point is, it is essential to work out realistic levels of market rents or prices on basis of independent research coupled with expert advice.

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