From This is Money:
Property prices, on the other hand, were temptingly low. So she bought a flat near Aston University in Birmingham which, in September, she will rent out to eager young students.
‘The idea is to get a good return now and achieve a small monthly income of £550 to £575, then to sell it in four or five years. By then, the market should have recovered fully and I will enjoy capital appreciation as well,’ she says.
Sally’s investment could prove a good one. Certainly, no one can accuse her of not taking full advantage of the property slump. She and many others are making sure that they understand the meaning of that phrase: silver lining.
The fact is that Sally’s property, a new build which remained unsold during the downturn, was originally marketed at £100,000. But she negotiated a deal and got the price down to £72,000 – a 28% reduction. She has spent a further £1,000 on furnishing the property.
‘I decided to pay for the property outright, though…