Invest in London or Elsewhere...

master_ian

Until recently, I was focused on investing in a buy-to-let property in London, but because of the increasingly overvalued prices, my projected purchase for a £180K newbuild does'nt look too promising.
I've been looking at other up-and-coming developments elsewhere and am starting to think why not Sheffield, Leeds, or Manchester. They seem to have very good prospects and a healthy economy/jobs, rental, etc...and I could probably purchase a 2 bedroom newbuild flat for about 160K--well under my budget--plus some leftover for the rainy day!!
Has anyone invested in any up-and-coming cities/towns and aside from the 3 mentioned above, any other recommendations?
I have a 20K deposit and am looking to get a 160K mortgage in March.

Thanks for reading... :beer:

Doozergirl

London rents are far higher than other places I've looked at. £180k will just buy you a 2 bed in Crystal Palace that will rent for £850pcm. In Birmingham it will buy you a 3 bed semi that will rent for £600-650. Neither really stacks up on paper but London will provide a modicum more cover for your backside!

New build is frankly a BAD idea. I would not invest at all. There's massive competition for tenants which drives rents down. I've seen prices drop also. If things go pear-shaped in the market, everyone will be bailing out together. That means your investment drops faster than an established residential area where owners are occupiers or professional landlords who bought a long time ago and are in it for the long haul.

If you really can afford BTL, I'd look for a bit of a bargain in an established area.

btw, there's nothing 'left for a rainy day' if you're borrowing The idea is to pay off the mortgage!

master_ian

Cheers Dozergirl...
Brought to my attention that rents 'elsewhere' are'nt anywhere near London...doh! Thinking of East/Southeast London for all the regeneration thats going on/going to happen. I live in Tower Hamlets and can see it happening already. Although I am very weary of ex-council flats for potentially high maintenance bills/problems.

whambamboo

master_ian wrote:

Cheers Dozergirl...
Brought to my attention that rents 'elsewhere' are'nt anywhere near London...doh! Thinking of East/Southeast London for all the regeneration thats going on/going to happen. I live in Tower Hamlets and can see it happening already. Although I am very weary of ex-council flats for potentially high maintenance bills/problems.

Are you having a laugh?

Have you not heard the doom and gloom news? Inflation high and rising. Interests rates going up. You're about 5 years to late on the buy a house and get rich scheme. Prices are only going one way now.

BTW, Avoid new developments, because they are a rip-off.

Doozergirl

You are far better searching hard and buying something at below market value. It provides you with a decent buffer.

New builds are, IMO, over market value and are to be avoided at all costs. I do agree about ex-council, especially where owners are in the minority.

master_ian

I'm aware of the 'gloom' - although I must stress this is an investment over the long run...not just buy to let....Although nothing is guaranteed, I cant see property spiralling downward in the LONG run.
I would live in it myself, but the flat I rent centrally now is extremely good value it would silly for me to give it up.
Lead me to those bargains Doozergirl!

Doozergirl

lol!

I think Lynzpower has taken up the mantle as our resident Kirsty Allsop.. I bet she won't be able to resist this thread tomorrow morning. It has the word London in it

master_ian

Bring her on! Is she knowledagable and gung-ho enough to help me find a good bargain in London...lol...

lynzpower

You rang??? :rotfl:

Im in tower hamlets as well, and I know theres very little around the 180 mark.

Agree about new builds, they are overpriced as a rule, however they *might be* easier to let. Do you know that fabrika development up by victoria park? that was left empty FOR AGES with loads of to let signs in.

In terms of letting, you could do worse than let to the council or to a housing association on a guaranteed rent. Look around on the internet or give TH or NEwham council a ring from the off, and see what thier rig up is.

If you are happy to rent to housing benefit clients ( they dont all trash the place, theres lots of nice families and older people for example desperate for accomodation) you could look for property accordingly.

If I was thinking of BTL in london ( which I have considered, as letting to HB clients as above) Id look around Forest Gate, east & west ham, beckton, plaistow, that sort of area. there are still *some* cheaper properties around at this price.

http://www.rightmove.co.uk/viewdetails-13332163.rsp?pa_n=1&tr_t=buy

whether the figures stack up, I really couldnt say, thats for you to find out I think

master_ian

Cheers Lynz...seen you around on my visits to this site. You're quite a regular here. I think I really need to do some legwork on viewing some properties, just to see what's expected in certain areas.
The plans were straightforward last year...buy a new/newish property in an undervalued location but within easy reach of the city/docklands and let to professional people. (another reason to buy a build) Doh! Reality check!! Now, at my budget, might have to tweak the 'plans'...
Will look at those locations, pretty good transport links too.
Will target developers with end-of-financial year budgets - and try to get those 15% discounts I read so freely about here and in the papers...there are some interesting ones in the greenwich peninsula and thames gateway with decent rental prospects apparently. So much to research!!!!!

itgirlinuk

lynzpower wrote:

In terms of letting, you could do worse than let to the council or to a housing association on a guaranteed rent. Look around on the internet or give TH or NEwham council a ring from the off, and see what thier rig up is.

Who do you talk to when you ring up the Council? I am looking at a similar idea and a guy I knew had let his flat out with the council and he is happy about it. But, I have heard you dont get market value with letting it out with the council? Is that true?