The Hidden Cost of “Cheap” Rental Properties

On paper, a £65,000 terrace in Sheffield that rents for £550 a month looks like a

landlord’s dream…around 10 % yield!

Here’s the reality:

• The type of tenants who can afford £550 a month often don’t pay on time, or at

all.

• Older properties come with headaches: rising damp, leaking roofs and constant

maintenance. Every repair bill comes straight out of your pocket.

• And, yes, I’ve had one turned into a marijuana grow den. Twice.

I made the classic mistake most first‑time investors make: buy near home because it

feels familiar. I snapped up a few houses within three miles of where I grew up.

They’ve been nothing but a pain in the backside.

Today my strategy is completely different. I look for new‑build, luxury apartments in

city centres with strong stories of economic growth. Why?

• Newer buildings mean fewer surprise repairs.

• City‑centre locations attract professional tenants who value their credit scores

—and pay on time.

• Growth areas deliver both rental income and meaningful capital appreciation.

Low‑cost housing looks tempting, but when you factor in bad tenants, vacancies and

endless repairs, that “10 % yield” evaporates. Focus on quality assets in thriving

locations and let your money work without the drama.

Thinking of dipping your toes into property? Learn from my mistakes—invest where

your capital and your sanity will both grow.