Buying a House in London

olly300

St00zer wrote: »

Would people recommend I bought a flat in a nicer area and then eventually moved up the ladder with a house rather then buy a house in a not so nice part of London?

Or what if I bought a house in a not so nice part of London and rented it out and then in 2-3 years sell up and with a bigger deposit buy a house in a nicer area?

What do people think? What would you do?

Nope I wouldn't recommend it.

Even the landlords I know and have rented from know the type of people who are looking to rent in their specific area of London.

For example some parts of London have a university or a university of London College within a mile of them. That means that if you have a property to rent then you are likely to attract students and no one else.

While others have a specific community that rents properties in that area.

And even more are just targeted at professional people.

However if you buy a property i.e. a 2 bedroom flat near a tube/train station and with good bus links and aim it at students or that specific community but it's not in the exact area, or exact type of property they want then you will have difficulty renting it out.

For example when I was renting and wanted to live near a tube or train station I looked at properties advertised stating they were near a tube or train station but walking to the property I found many of them were mis-advertised as they were not in the area stated or I didn't feel safe walking in the area at night.

In addition at the moment you are competing with lots of accidental landlords.

Corona007

St00zer wrote: »

I am starting to think it is pointless buying a property in a crap part of London as it could turnout to be a total nightmare and may end up struggling to sell it and then eventually sell at a low price just to get rid considering how illiquid property is.

Hold onto that thought St00zer, it'll hold you in good stead if you do move. It may be cliched but in London location is everything and unfortunately you will have to pay for it. Generally, if you want to live in a nice area you either have to be rich or you rent. In fact most people I know in London rent and nearly all of them agree that it is not "money wasted" as it would be elsewhere.

For example, if you can afford £1,000 pm you can rent a nice flat near a tube/train. The same money in mortgage terms may buy you the same flat depending on how much deposit you can afford but usually will not. Normal trend is to move from there to a 3 bed house which may cost £1,500 rent or about the same in mortgage assuming you re-invest the equity and increase your mortgage. And so on ad nauseum. At the moment, unless you have a lot of money to start with, you will always be paying the same to rent as might do to buy in the best conditions. The only way to realise the equity you are earning is to downgrade or move out of London - but if you've rented for the same period you'll find you might still be able to afford a new mortgage for that same property. Fact is, people and money gravitate in towards Central London and the cost of buying increases exponentially.

The areas you mention are as different as Huddersfield is from Southampton. Pinner is a more upmarket commuter area whereas Wembley tends to be more ethnic and community focussed. High Barnet is a fair old slog down the busiest tube line in London. Once again, I'd advise you to experience the areas before you decide.

<sebb>

St00zer wrote: »

Wembley, Harrow and Pinner

These are the areas I've been looking to buy in and you still wont find a decent 3 bed house here for under £250k. And you also have to be careful, there are some parts of Wembley and Harrow that are pretty dodgy. If you go out to Harrow Wealdstone, there start to be some 3 bed houses in that range but its not an area I'd like to live in.

lottie176

I'd be supprised if you could find a 3 bed property in London in a good area for your budget. I'm N14 and almost right on the London/herts boarder and even moving that far out of London the prices are high. I've lived here all my life but am now moving out further in to Hertfordshire so that I can get a decent size property in a decent area at a decent price! London property prices seem to be very much that you pay for what you get. Cheap house= it's not going to be a very nice area.

amcluesent

Since the money was drained out of the City, not much "gentrification" going on in London to help turnaround iffy areas either. Anyhow, with our crazy benefit laws you could buy a £1M apartment in Chelsea and then find a Somalian & her 10 kids living above you.

Megarobbie

We're buying a three bedroom ex-local authority house in Forest Hill at the minute for under £250,000. It's not on the tube but in June the East London line reopens as London Overground, going up to Canada Water, Whitechapel, Shoreditch and eventually Highbury & Islington. It's not quite as regular as the tube but not far off.

Nice area (as long as you aren't too close to Catford) and definitely on the up.

MrsE_2

Megarobbie wrote: »

We're buying a three bedroom ex-local authority house in Forest Hill at the minute for under £250,000. It's not on the tube but in June the East London line reopens as London Overground, going up to Canada Water, Whitechapel, Shoreditch and eventually Highbury & Islington. It's not quite as regular as the tube but not far off.

Nice area (as long as you aren't too close to Catford) and definitely on the up.

And so handy for Peckham;)

pimento

I've come back to defend east London. I was born there so may be a bit biased, but it isn't 'the pits'.

I have lived in and sold two properties in Bow/Bethnal Green. One was the top floor of a tower block and sold within weeks at the asking price, and the other was a terraced house in Bow which tripled in price in the 10 years we lived there very happily. This was very close to Mile End Station and I worked in the west end and had absolutely no problem getting a train in the rush hour from either of the two tube lines that run through there. I was quite safe walking home from the station after dark (although I wouldn't walk tnrough the park or cemetary in the dark but then, I wouldn't do that in any area).

My husband used to walk my (then toddler) son the Canary Wharf from our house and it didn't take anywhere near 45 minutes.

The woman who bought our house paid cash (using her city bonus) and is renting it out to students at the nearby Queen Mary College. She has been doing this since 2001 so it' obviously making her a profit.

The only people who think east London is bad are the people from west London (in my experience).

If the secondary schools were better, we'd probably still live there. Don't discount Bethnal Green, Mile End, Bow, Stratford. With an Olympic Games coming up and the infrastructure that being built around there, you won't lose your money.

St00zer

pimento

Which streets would you say are the most desirable areas to live in for Bow/Bethnal Green and Mile End ?

What infrastructure is being built in Bow/Bethnal Green and Mile End ?

St00zer

Megarobbie

I would never but a ex-local flat, not even to rent out. My view is why should I work hard and earn money to buy a place to live in which I know the next door neighbour is probably being handed it to him/her on a plate for doing naff all?

I would only buy in a private residence where people alike have worked hard to buy their house.

Does anyone know where I can get details of which London Boroughs have the most social housing? I think that is one way I will eliminate areas from my list.

I believe more social housing = more crime and a nightmare area to live in.

The areas that have regenerated and have been really up and coming are the ones where councils have reduced social housing and more rich city folk have moved in ... Islington comes to mind.