Belfast: Investment Property , where to buy, not to buy, rental yields etc etc.?

D

doberden

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Hi,

I'm planning a trip up to Belfast to look around. Am considering buying an investment property up there - 3 bed house close to the city centre. Does anybody know about areas in Belfast, where to buy, not to buy, rental yields etc etc.

Thanks,
 
Re: Belfast

This is not the first property investment thread that you have started in the Mortgages and Home Buying forum and which we had to move to the Property Investment forum. Please note the and post new threads in the appropriate forum.
 
I have a couple of properties in Belfast and although they do very well for me i wouldn't be buying now as you will find it hard to get the rent to cover your mortgage repayments.

So in summary you have missed the boat i think.

Thanks

Brehon
 
I wouldn't be so sure about that. There's two aspects to the return from property, rents and capital appreciation. Rental yield in the south is now very low, between 3 and 4%, surely Belfast can't be any worse?

I also suspect that the scope for long-term capital appreciation in the North is quite good. Peace process dividend and all that............. Whereas the general expectation here is for more modest growth (or even a crash, but I don't want to start THAT topic off again;) )
 
The properties we were looking at give a rental yield of 6%. So it covers interest only with some money towards maintenance but doesn't cover the repayment piece. They are typically 2 to 3 beds in the region of 60 to 100k - certainly not top end properties but room for growth.
 
You could expect to get around 500 -600 Sterling for a 2 bed place near belfast city centre or suburbs. You' ll probably need 20% deposit for a buy to let mortgage though.

You could get a 2 bed apartment in belfast in a good area for around 120K - 130k Sterling.

The life of the mortgage up there tends to be shorter (25 years) and mortgage rates currently are around 5%. Also a bank in the South probably wont lend you the money for a property in another jursidication so may need to scout the mortgage with a bank up there.
 
60- 100k will probably mean buying a house on the south side of belfast city, donegal RD area. I have two houses in this area and have only ever been able to get 320-360 for a 2 bed.

To get 500 pound the location would have to be very good i.e. lisburn Rd which would mean spending more. The market up in belfast i believe has alot of houses for let.

I dont believe that you will get enough to cover your repayments.

I recently had the option of buying a place for 80k on the south side of the city and turned it down as i was going to make enough from it. I would put the money into shares. Ulster bank will loan 85% for properties in this price range.


Thanks

Brehon
 
Would somewhere along the coast, and on the train line not be a reasonable proposition?


Think Howth and Donabate down here, what about Carrickfergus, Whitehead up there?
 
I dont know those areas to be honest.

the other problem you will have is the massive developemtn going to happen in the titanic area, hundreds of apartments which will be rented as well.

You need to buy cheap and have a low repayments in order to get good tenants in. Its very hard to get good tenants in the areas where the houses are cheap. trust me it took me months to find someone.

the other thing is the best time to buy is to buy after xmas before April and have it ready for June its meant to be the best month for renting - i dunno why.

thanks

Brehon
 
Hi All,

Any ideas of good banks to go to or mortgage brokers? (i.e. for property in belfast). The agent I was talking to is looking for .5% commission and said there was 1.5% arrangement fee?

Thanks,

p.s. haven't bought yet but just trying to get together all the costs.
 
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