Ajay Ahuja on Freehold Properties and How to Find Them

Can I ask you a question and please answer with your gut feeling:

Do you think your money is safer invested in:

A. A leasehold 1 bed flat (99 years) in a city centre valued at 180,000 GBP

B. TWO 5 bed freehold houses 3 miles outside of the city centre worth 90,000 GBP each

Lets look at the 1 bed flat at 180,000 GBP.

There are many property investment companies offering these sort of properties.  Yes they are in close proximity to a train station, yes they look nice and yes they are in a nice part of the city.

However, the property is less than 600 sq ft, can only rent out at 800 GBP per month (5.3 per cent yield), has no land rights, has high maintenance and service charges of 100 GBP per month which are determined by the freeholder (which is not you!) and limited tenant types.

Now lets look at one of the 5 bed houses at 90,000 GBP.

Yes its quite a walk to the train station, yes the building looks a bit ugly and yes its in a not so great part of town.

However, the property is over 2,000 sq ft, can rent for 1,800 GBP per month (20 per cent yield), has full land rights, has expenditure controlled by you and can be let to single individuals, working couples, a whole family, as a hotel or even the council directly as a YMCA.

And you get TWO of these freehold houses for the price of ONE tiny city centre leasehold apartment.

Now these houses are not in abundance but they are out there and we find them.  If you want me to help you then read one of my books.

 

Be the first to comment

Leave a Reply

Your email address will not be published.


*