Stratford still a good buy for long term

lynzpower

Good point about HMO Tassotti.

Having lived in HMOs myself, the OP needs to prepare themselves for the hassle of multiple tenants, and fairly high turnover of tenants, and all the hassle that goes with that. Many of my clients ( eastern europe, as well as African, again high population in Newham) have come for a few months, made some money and naffed off home, sometimes not paying the final rent installment.

A couple of my EE clients have moved into HMOs' and they are serbian wont live with Croatians, ( just an example) and there are lots of clashes of politics involved, some situations have got pretty volatile. POlitically and culturally there are a lot of clashes in this seemingly homogenous group. *African* cultures the same. Just cos they are from the same continent, the disparity between religeon, culture & beliefs is huge, and often clashes, learned from bitter experience.

If you are convinced of buying it, you could always consider students University of East London has campus in stratford.

meanmachine_2

lynzpower wrote:

A couple of my EE clients have moved into HMOs' and they are serbian wont live with Croatians,

Oh why can't we all just get along - for the sake of our poor suffering BTL landlords!

I suspect the OP wouldn't want the hassle of an HMO.

I suspect the OP was hoping to rent their luxury pad to a nice middle class professional couple called Simon and Tabitha, with bags of money and some weird desire to live in, ahem, an "up and coming" area.

I travel through Stratford daily. Lots of old warehouses etc are being knocked down and replaced by blocks of flats, almost on a daily basis. SO what we have now is a depressing mix of Russian style apartment blocks, council high rises, a massive scrapyard, and some kind of alien-looking Olympic building that'll be used for 3 weeks.

I swear, one block has been advertising empty apartments for over a year.

I'd consider myself to be a professional. Would I live in Stratford at a cost equivalent to a place in West London? Sorry, no.

lynzpower

Also to say, I think the transport in Stratford is one of the best things about the place. Central line,( easy change at mile end, no stairs) DLR & loads of overground.

BobProperty

Just one more point from a cynic, is there a chance that the money being spent for the olympics will be concentrated on a few routes? I.e. the main routes to and from stadiums etc will get a facelift but one street away, not in camera shot, will get nothing.

lynzpower

London is a wonderful city, BECAUSE of its diversity, BECAUSE of the rich & vaired cultural traditions, and BECAUSE of the opportunities it offers its residents to learn and embrace other cultures. I think those who cannot "handle" the diversity of London, should go back where they came from! Including me, I should naff off back to Stockport really if I didnt like it.

Back to OP, and getting it all back on topic, who you want to let to. If you are not happy with the HMO/ Student route/ or even housing benefit route. Then why not put this £200 a month into a high interest account or shares or something, and wait for the market to do what its doing. Do some more research into areas that have fewer voids for example.

You might want to tell the vendor you have cold feet, if you have put an offer in too, I feel for them, they are probably getting on with thier side of things.

Tassotti

Don't feel sorry for the Vendor. The estate agent probably already has another 4 speculators ready to take this property.

As soon as the Olympics were announced, prices in Stratford rose by about 25%, so the vendor is cashing in anyway

The market there is unbelievable.

There is money to be made. The initial influx of investors has died down now, but in a couple of years will pick up again (those speculators not wishing to 'miss the boat')

The type of property the OP is looking at will demand the most competition.

Get in, wait a couple of years for more increases, get out quick.

At the end of the day, Stratford is left with a masive unused Stadium in a dump.

Tassotti

Sorry to ramble on, but one other thing about the Stratford market.

I viewed a 4 bed penthouse in The Heights (opposite Station)

Asking price 400K. I liked it and wanted it for myself, so put in cash offer of 385K.

Checked sold price in 2001 and it sold for half a million.

Offer not accepted (due to idiots of Estate Agents)

Sold eventually for 380K???

Never worked this one out.. Why would someone lose 120K on a property?

lynzpower

Unless TAssotti, there was something wrong with the construction of the property?

Cant see what other reason there would be for such a plummet

black-saturn

Tassotti wrote:

Sold eventually for 380K???

Never worked this one out.. Why would someone lose 120K on a property?

Cox no one else wants to live there maybe?

Tassotti

Well , Lynz, newbuild in 2001 by a major developer.

9 Floors of apartments (flats), concierge, underground parking (x2) all that jazz.

1 and 2 beds achieving good profits on sales

Cannot understand it myself.

Maybe overpriced in first instance as all new builds are, but why the loss?

Unless the original owner knows something everyone else doesn't??

(Scratches head)