Liverpool yields are among the highest in the UK property market!

More we look at the numbers, more we get impressed about the potential that is hiding in Liverpool these days. With Abricko machine running, we check every week's different city across the UK market. We collect and aggregate daily data from several web site and in total, we process around 2.5 M data points, between properties for sale and property for rent.

We calculate in real time the median ( not the average!) of the rents organised by the number of rooms and by postcodes ( over 31000!) to get the most transparent overview of what agencies and private landlords asking for long term rent. This data flow arrives not from only one market place but is generated across 5 different sources of information. Just to be sure that we don't miss out anything and the statistic is deep and solid. This job could take months for a single person and never be accurate since data change every minute.

Whit out knowing in the specific the local market, but by only observing through the lens of empirical analysis, one of the city that show some of the most attractive investment opportunities, is definitely Liverpool. To give you a perspective of the magnitude, a city like Bristol show in this moment maybe 2 or 3 property with a yield over 10%. Looking at Liverpool, you can easily find at the same moment, more than 50/60 different opportunities in several areas of the city. We don't comment about the why, but we just report this as a fact.

This is a pick between several that you can find in Abricko, that looks very interesting. Please note that is a auction sale! The closing price can be different and higher. But let's see how is looking like a starting point.

1 bedroom price £20000

Comparable rent range in the same postcode for one room is between £350 to £500 pcm. We take £425 as the median monthly rent.

That lead to an annual yield of 25.5%.

If you don't believe the statistic that Abricko collected and pick a £350 as your monthly rent the result is still a strong 21% yield. 

Imagine to put a 25% down payment to your bank or lenders ( actually often 20% is possible) and you pay 10% in cost and tax, 2% to agency fee and £3000 in refurbishing cost. You end up to invest approx 10000 pounds. This is your real investment. A yearly cash flow generated by 12-month rents of 425 x 12 leads to a final annual cash flow of £5100. After the cost of the mortgage at 2.5% interest rate on the capital borrowed, you could end up with an ROI on your invested capital ( £10000) that is a stunning 45%.

This is an example and anyone can play with the numbers. By get a higher closing price, better conditions from their own bank, or less refurbish cost or higher agency fee and so on. You can end up with different results. Still a great deal. Still that by let a machine searching, you can check millions of data faster than any humans. Then, you can make your own due diligence. A machine doesn't take a decision but can save you huge time. 

In the end... time is money!

https://www.zoopla.co.uk/for-sale/details/50584818