Daily Archives: December 8, 2016

DIARY OF A PROPERTY INVESTOR – DAY 12

We are in Sunderland having seen a potentially interesting block of flats. We are exploring the area around the shops. Many of the surrounding streets are full of lovely houses often converted into professional offices e.g. solicitors, accountants, architects etc. The only downside is the hostel and the pharmacy next to it which supplies the legal drugs for those with a drug problem.

We chat to people we meet, we go into local shops and talk to the people serving, we go into local letting and estate agents and generally get a feel for the area. Our experience is that people are usually very keen to talk to you and give you their opinions

The general consensus is that because of the hostel the area is rough but safe. On the whole the people in the hostel will not interfere with the people working and living around them.

Sunderland City Centre itself has a nice shopping centre and most of the shops you would expect in a major town but clearly is not at the peak of its prosperity. Many shops are vacant and there is not the buzz you get in Cities experiencing renewal. Talking to people we find there are no specific plans for Sunderland as such so if we buy this property it has to be on its own merits and not in expectation of revival. That is not the case in most of the Towns where we buy as we usually pick Towns where there are serious plans to regenerate and revive the Town or the area we are buying in.

But we also gather that the consensus is that a one bed flat in this area should fetch £400 to £450 per month. We know the housing benefit rate is £390 per month and if that is the case then the price of £255,000 gives us the yield we want.

So, long story short we go back to the Agents and eventually agree a price of £235,000.  This is a property we are buying with our London investor so we give him a full report and he agrees this is one we should go for.