Need your advice on prop investment

[MsIrum]

Hi everyone.
This will be a bit of a long post but bear with me!
Im new to the forum so hello to all. Im Also a newbie property investor or wanabe shall i say.
Me and my mum have joint savings and are cash only investors (we wouldn't be able to get a mortage). She is elderly and i dont work since i have 2 young kids under age of 3, both of which have complex health problems and she helps me take care of them. Relevant since it helps explain that we cant do any diy or. Project management ourselves and also are not experienced. But i have been trying to invest. For. Past 2 years unsuccessfuly. Sometimes outbid at. Last. Minute. Sometimes afraid of buying. Something that. Needs.work. Sometimes not bidding high enough. And realistically enough. We.also can't go and see the property ourselves as I have had to move abroad to abudhabi with hubby and mum is here helping me.

So we have savings of 135k and want to Invest. Budget can be up 145k cash possibly. We are from Coventry and have one property so far in Coventry which is tenanted out to a great family long term (the area is not great i later realised but the family is great)
Anyway so next property i wanted in a better area. The property would not be resold anytime soon after purchase - we would Want to let it out.
But bear in mind- we cant do any diy at all ourselves. We would hire tradesmen to do all the work at full price. (we dont. Know anyone in the business and have no contacts)
So i wanted your valuable advice.and i have lots Of questions. Apologies if they Sound a bit silly or very basic but i am a newbie at this and would really. Appreciate your advice.

- should we invest in a house or flat? (want 3 bed)
- should we invest close to city centre where We Would get a Smaller Property or a bit further out?
-should we buy a property that needs alot of work like kitchen bathroon etc. If we hire someone to do all work is it still worth considering doing up a property? I feel like the ones that need sone work are. More within budget and maybe better for us?
-if its in an area that can accommodate both per room lets and family or professional lets then which type of let would you recommend? What about student lets?
-what should our net target yield be? Is 9% possible do you think?
-what about investment in Liverpool - possible to do remotely?

Thanks in advance. Alot of questions but really hoping for some guidance from your experience here. Thankyou!

 

[diyhelp]

Hi,

First of all welcome to the forum

I will try to answer your questions below:-

- should we invest in a house or flat? (want 3 bed)

That depends on the area, rental yields and potential for capital gain. You need property types which are sought after in the area

- should we invest close to city centre where We Would get a Smaller Property or a bit further out?

I would look at up and coming areas away from the city centre if prices are too high. Public transport has created many property hotspots on the outskirts of city centres. You will need to do some research

-should we buy a property that needs alot of work like kitchen bathroon etc. If we hire someone to do all work is it still worth considering doing up a property? I feel like the ones that need sone work are. More within budget and maybe better for us?

Remember you will be paying full commercial rates for renovations so you need to ensure they will add the cost and more (hopefully at least double the cost) to the value of your property, post renovations

-if its in an area that can accommodate both per room lets and family or professional lets then which type of let would you recommend? What about student lets?

HMOs offer greater rental income but may require changes to the layout of the property. I would go for ready to let properties and in the early days avoid HMOs - targeting families and/or young professionals

-what should our net target yield be? Is 9% possible do you think?

I read that in excess of 7% or 8% is the breakeven point after taking into account ALL related costs. Higher rental yields often indicate lower capital appreciation but the balance of this will be down to you

-what about investment in Liverpool - possible to do remotely?

It is possible to do this remotely or use a letting agent. Depends on your experience