Buy-to-Let high yield locations...

lynzpower

See my feeling is that you could well get 1050 from housing benefit, but youd need a 2 bed place min to be able to secure that sort of money. have you thought about having a speculative chat with the rentservice.gov.uk

I'll have a think and try & come back to you but it might well be later in the week, I have NO mse time whatsoever

lynzpower

Ok Ive thought about it that didnt take too long did it!

If you are going to try to let to HB tenants, you may well have some luck in beckton E6. Property there is cheap for london eg http://www.rightmove.co.uk/viewdetails-14402194.rsp?pa_n=2&tr_t=buy

but theres another cheaper one too.

have a look there and have a chat with newham about whether they might take on your place for HB and what the rates would be that would be my starting point.

master_ian

Lynz, you're a star...Will check that out on Monday. Maybe I should be consulting you for your location service - you probably charge a mint. Cheers for getting back Alan M.

RHemmings

master_ian wrote:

Hey Lynz...thought you'd drop in.

Our budget is £180K max for a 2 bed - with a 20K deposit - we're below usual 15% needed for BTL. However, there are lenders now allowing for 10%, although I do realise we'll be paying higher IR. Another option is being straight with a lender and going residential first then switching to BTL after the purchase - finding a lender who will allow for that.

Ideas on good rental areas in East London/any part of London for that matter?
In this for the long run so although we may not be getting the yields of 10 years ago, a bargain purchase in a good area will I believe produce good capital growth.

Just read that houses give higher yields than flats...Comments?

I would have thought, like some have mentioned, that you may have missed the boat. But having a look around it seems possible to buy a 2bed in SE18 for about £100,000-£110,000. To get your 7% rental on £110,000, you need £641PCM rent. Looking at the rental listings it looks like £641PCM for a two bed is possible. Strange, because I thought that there weren't any parts of London that would give such yields any more. But £100,000 sounds cheap for a two bed in London, and it seems that SE18 is one of the cheapest boroughs in the city. There may be good reason for this, that someone with local knowledge can fill you in on.

pioneer

Try collecting the rent ! preferably with a small semi automatic weapon.

lynzpower

RHemmings wrote:

I would have thought, like some have mentioned, that you may have missed the boat. But having a look around it seems possible to buy a 2bed in SE18 for about £100,000-£110,000. To get your 7% rental on £110,000, you need £641PCM rent. Looking at the rental listings it looks like £641PCM for a two bed is possible. Strange, because I thought that there weren't any parts of London that would give such yields any more. But £100,000 sounds cheap for a two bed in London, and it seems that SE18 is one of the cheapest boroughs in the city. There may be good reason for this, that someone with local knowledge can fill you in on.

I dont know the area MASSIVELY but Woolwich/ Thamesmead aint the greatest I have to say. I went to wollwich a few weeks back and although it definately has some higher points ( the foot tunnell is cool & the old army buildings round there are fab) but aside from that its very run down, plenty of street drinkers, and a very high police presence kicking around. I wouldnt live there. the high st is full of cash converters type places, but Ian, Id go have a nose and see how you feel.

Additionally, in this area I suspect you'd hit the point where there might be a lot of oversupply issues. there is a fauir amount on the market that seems to have "stuck" for a while, and property as Rhemmings says is cheap and very plentiful.

Id also suggest that if "somone" can afford 641 a month rent, they are not far off getting a mortgage themselves.

Personally, I wouldnt touch the property in the area. It isnt rising a lot, with ( I suggest) fairly good reason. However, the DLR is getting an extension there shortly so it might be a good prospect. Depends on your viewpoint really

Mrs_pbradley936

If you want more of an insight look here at posts number 6 and 9.

http://forums.moneysavingexpert.com/showthread.html?t=372028

I had given my circumstances to someone enquiring about investing in property and some else very kindly worked out that the yield had fallen from 9.1% to 4.6% and at the same time the prices to buy the properties has more than doubled. These flats are on borders of Herts and Essex about 30 mins from London by train.

master_ian

I realise it's a tight squeeze in the market climate of the moment but am willing to seek out a good under-priced flat in a up-and-coming area.

Keep the comments coming...

Doozergirl

RHemmings wrote:

I would have thought, like some have mentioned, that you may have missed the boat. But having a look around it seems possible to buy a 2bed in SE18 for about £100,000-£110,000. To get your 7% rental on £110,000, you need £641PCM rent. Looking at the rental listings it looks like £641PCM for a two bed is possible. Strange, because I thought that there weren't any parts of London that would give such yields any more. But £100,000 sounds cheap for a two bed in London, and it seems that SE18 is one of the cheapest boroughs in the city. There may be good reason for this, that someone with local knowledge can fill you in on.

Is SE18 Plumstead?

I saw how cheap it was years back. We drove in and drove straight back out again and got a speeding ticket on the way out! :rotfl:

And I hail from Streatham if you think I can't hack slumming it

Alan_M_2

There's only one place I'd consider worse than that....Roundshaw on the outskirts of Wallington.

They used to use it to shoot scenes for The Bill when they wanted a deprived a drug infested squalor ridden estate. You could get a 4 bed house there for £150,000 - mind the neighbours would probably burn it down within the year....