A safe property investment in East London??

jonny_rat

Hi all. I'm a long time reader, first time poster (oh what a lovely cliche..). Posting today though as I've got a real issue playing on my mind.

I'm thinking about buying a flat. A flat.. in London. Yes, I may be mental; perhaps you could tell me if I'm being unreasonable/stupid here. I'm not on a great income, but my Ma & Pa have offered to help me out (maybe as guarantors, maybe some kind of joint ownership scheme, I'm going to chat to them about the details this weekend).

I'd like to buy a 2-bed place (so's that I can take in a lodger), and it doesn't have to be anything amazing.

What I'm concerned about is falling house prices; if my mum and dad are kind enough to help me out, I want security for them (or even to give them a return). I really like the East (although I'm open to suggestions), and I see flats around Zones 2&3 for less than 180k (lord of lords, not all of them ex-council). I don't really trust the Olympics thing, and I see myself being there for 3 or 4 years at least. Although I've got a vague notion of looking out for somewhere very close to the site of the new Shoreditch High Street station (which I'm sure would be a bonus to local prices in 2010).

Basically, I guess I know it's London, and there's going to be an element of fleecing; of paying over the odds for a place that wouldn't be worth beans anywhere else. But I'm studying here for the forseeable future, I need a place to stay in this time, and I can't stand putting all this rent money into the fingers of dodgy landlords.

Does anyone have any advice? A cold slap of reality around the chops, perhaps? Ta for reading, anyway, and hello to everyone on here!

lynzpower

Hi there

Im an east londoner, and I think ( I would ) east London is a briliant blace to live. Still relitavely affordable, fab transport links, you wont end up paying through the nose for coffee shop culture.

Now I will say, that round the top end of Brick Lane trandy as it is where the new shoreditch station is, its over inflated in the first place. Also whitechapel and Shoreditch lets just say, are pretty lively crime wise. Its slap bang in the middle of a red light area ( see last weeks time out there was a big article on it) and a fairly heavy one at that ( having worked within prostitution support services I can say this with some authority) , and there are A LOT of crime problems. I wouldnt live in Whitechapel/ Aldgate for all the tea in China.

However, move ever so slighlty down the road
Victoria Park village if your not too bothered by not having a tube
Bow/ MIle end
Stepney

Some parts of stratford OK too, and what 3 stops into l street, fab links etc Still a fair amount of reasonable property but you need to be careful I believe some areas are dodgy, but saying that I havnet come accross them

beckton is cheap still , on DLR, I wouldnt but it all depends where you work, what your budget is and what sort of amenities you are after.

I think capitalising on the new tube links happened a long time ago and Id also say theres a fair amount of building going on in terms of creoss rail, if you are willing to put up with driliing for the next X amount of years then go for a property in the locale of crossrail build. Also to say I did read that the whole of brick lane is under threat from crossrail, and one of my aquaikntainces is having crossraildrilling under neath his actual flat. :eek: I wouldnt be to chuffed mate I have to say

Anyway, I could talk all day about this Ill come back later whne others have had some more thoughts.

Lynz

RHemmings

lynzpower wrote:

Also whitechapel and Shoreditch lets just say, are pretty lively crime wise. Its slap bang in the middle of a red light area ( see last weeks time out there was a big article on it) and a fairly heavy one at that ( having worked within prostitution support services I can say this with some authority) , and there are A LOT of crime problems. I wouldnt live in Whitechapel/ Aldgate for all the tea in China.

The cheapest 3 bedroom property in Shoreditch I could find was £190,000. In Aldgate it was £245,000. To me these seem pretty high prices. And this is what people have to pay to live in an area as you describe. Who is buying these properties in this area at those prices?

And would you recommend people not visit the Museum of Childhood in Bethnal Green with family?

lynzpower

Museum of Childhood AFAIK is closed for a refub, but its a great afternoon out

Loads of people buy round there cos its "trendy" apparently the prostitution & crack houses are part of the seedy glamour. I coudlnt disagree more. Now dont get me wrong Im happy to mosey down brick lane markets, and go for a nice curry, and drink in the bars round there, would I live there? Never.

I dont think 190k for a 3 bed in Zone 1 is bad price though Rhemmings, not for London really. I struggle to think where else Zone 1 you could get a 3 bed for that, very very possibly Elephant & Castle.

jonny_rat

Thanks for the replies so far guys; very interesting stuff indeed. I should probably also add that I'm a real newbie to London, so no advice is going to go to waste, trust me.

Much as I'm in love with the area (I live just off Bethnal Green road at the moment), it does feel like taking a walk two minutes in the wrong direction could land me somewhere nasty. For example, the Aldgate East side of Brick Lane freaks me out a bit.

I do need a tube unfortunately (Hsmth or central are fine), but I'm very interested in places near the Stepney or Mile End stations.

loulou41

I, too am looking a bit like you but am the parents who are going to help the children. So far, have been looking in Harrow with no joy, had an offer of 297K refused. I am also considering a flat in London and open to suggestions with a budget of 300k for a decent 2 beds flat in a nice area, near Russell Square in zone 1 or 2. So far, can only get a 1 bed flat, if anybody could suggest to me where to look, I will be grateful. It has to be within 0.5 miles of a tube station where you can walk. I am sure I am looking in the wrong places. Currently, daughter is renting in Harrow and takes the fast train to work and I have been looking in these areas since February with no luck. Thanks

lynzpower

Jonny

I know exactly what you mean about wrong turnings round there. I find winters round bethnal green just that little bit scary, and I like to think Im pretty hard

One thing I will mention,( and Im exceptionally biased here) but I think just up the road round Bow Road is ever so slighly better as its got the DLR at bow church

Bow road onto the central line is no bother at all, theres no stairs or changes to be bothered with, so effectively from Bow rd, you have DLR, H&C, central & district. plus 2 night buses ( 8 from victoria which youll know of & the 25 from o circus)

Lou what size place are you looking for and whats your top budget, theres loads round here and I am firmly of the belief that for professionals this is a great area (not sure on the schools IYSWIM although there is a couple of partic good ones according to ofsted)

RHemmings

lynzpower wrote:

I dont think 190k for a 3 bed in Zone 1 is bad price though Rhemmings, not for London really. I struggle to think where else Zone 1 you could get a 3 bed for that, very very possibly Elephant & Castle.

Here's the cheapest 3 bed in Shoreditch according to rightmove.

http://www.rightmove.co.uk/viewdetails-7768870.rsp?pa_n=1&tr_t=buy

I'm sure there's something "wrong" with it to make it "cheap", rather than it being a true bargain.

The cheapest 3 bed in Elephant and Castle is £5000 more expensive.

http://www.rightmove.co.uk/viewdetails-13009408.rsp?pa_n=1&tr_t=buy

But for £150,000 you can buy a 3 bed flat in Sydenham.

http://www.rightmove.co.uk/viewdetails-5274291.rsp?pa_n=1&tr_t=buy

Or for only £10,000 more, this 3 bed flat in Forest Hill.

http://www.rightmove.co.uk/viewdetails-12655250.rsp?pa_n=1&tr_t=buy

Minimum of 20% deposit? What's that about? Valuation problems?

Searching on 3 bed flats in London as a whole, cheapest first, I find that the cheapest 3 bed in all of London is:

http://www.rightmove.co.uk/viewdetails-5142066.rsp?pa_n=1&tr_t=buy

In "Mottingham". I've never heard of Mottingham. In case that isn't London, here's another in Abbey Wood. Dartford area, is that really officially London?

http://www.rightmove.co.uk/viewdetails-5330764.rsp?pa_n=2&tr_t=buy

I'd better restrain myself. Looks like I'm at risk of hijacking another thread here.

jonny_rat

Thanks again Lynz! Again, more food for thought. I plan on talking to a mortgage dude this weekend (as well as an IFA in the near future) to sort out my budget, then I think I'll start looking at some places on a sort-of casual basis.. I really need to get some hands-on research in the areas you mentioned I think.

One other question though. All questions of whether the East is 'worth it' aside, what do you reckon to future prospects? I'm scared of prices dropping, and landing myself and my parents in it. I know a decision like this is always going to be a gamble, but still..?

Bargain_Rzl

RHemmings,

Mottingham is in Zone 4, think it's SE12, between Lewisham and Sidcup. I pass through it regularly and parts of it aren't bad.

And as for Abbey Wood, a lot of properties that say they're in Abbey Wood (Zone 4, SE2) are really in Thamesmead (SE28) which is a dump despite loads of "regeneration", and is miles from anywhere including the railway.

In my opinion, Sydenham/Forest Hill/Crystal Palace are the places to go for a bargain with lots of greenery around and excellent trains.

lynzpower

LOL HIJACKER!!

ive never heard of mottingham either Anyone?

That flat in bethnal green ( i wouldnt say B green, Id say Hackney, actually isnt that bad, and pricing in that area is fairly stable. Like any estate, youd have to go adn see them in the middle of the night adn see how you felt about it. Some in poplar Id say would be fine, bow perfectly fine, most of stepney fine.

bethnal green, whitechapel, haggerston, homerton, each to thier own really.

I dated a lad from Abbey wood for about 5 mins once, he said it was really rough.