To buy in SE London or NW London or Mitcham?

JohnDoe1

Hi,
I wonder if you guys can help by giving some opinions on where to purchase.

My budget is a modest £200-220k and with that I can get a 2 bed house in the Thamesmead area of SE london or a 2 bed flat some other areas of SE London.

In NW London around the edgeware area I can possibly get a 2 bed flat.

In the SW, the only affordable area for a 2 bed flat with my budget is Mitcham!

So of those areas which would you say is the best investment? Or maybe other areas to consider?

Thanks

BitterAndTwisted

Have you been to either Mitcham or Thamesmead?

I'd say "no" to both.

To be frank, I suggest you disregard the idea of investment and concentrate on where you would be happiest long-term.

JohnDoe1

BitterAndTwisted wrote: »

Have you been to either Mitcham or Thamesmead?

I'd say "no" to both.

To be frank, I suggest you disregard the idea of investment and concentrate on where you would be happiest long-term.

Nope, and the prices suggest they're not currently the best areas but was hoping they're not THAT bad.

This buy is purely for investment so i wouldn't be living there...

AndyGuil

£220k might squeeze you into a 2 bed in Hendon in NW. Worth looking around Finchley central and north of there too.

thelawnet

Why are you wanting to invest if you know nothing about the areas?

If you are wanting to do this, then:

* transport links - look for good trains or tube
* central as possible - how far from West End or City?
* housing stock - ex-council can be good value for money, but check the area carefully, spend some time there, check news reports for stabbings, etc.
* look for signs of gentrification - independent caf!s, Waitrose, etc.
* the actual road it's on - is it a sh*t place on a good road? Good. Nice place surrounded by dumps - run away. How far to shops, green spaces, station?
* rental rates - gross yield should be as close to 10% as you can manage
* compare prices per sq ft with neighbouring areas. Is it much cheaper? If so, that might be for a reason, but you've got a better chance of price appreciation.
* schools - read up on the local schools, take a look at the stats, any signs of light?
* politics - check local election results - if the BNP and Labour are the only two parties getting votes, run away. Substantial Lib Dem, Green or Tory votes are a better sign
* housing type - flats are ten a penny, but they aren't building more houses. Period housing is best - look well-built, attractive but perhaps unloved buildings. Ideally nothing post-war. Flats have service charges and tend to be overpriced by greedy builders.

bouicca21

Thamesmead may be a good investment if you are prepared to wait for Crossrail and want to cross your fingers that it really will boost prices in the area. Personally I think the area is ghastly. I agree you would be better off thinking about where you would be happy to live. What do you want in terms of transport connections, shops, cafes/restaurants? Work out the answers to those questions, then work out where to live.

JohnDoe1

thelawnet wrote: »

Why are you wanting to invest if you know nothing about the areas?

Because the place to invest in property is london and with that in mind and my budget, the only places available that i found are in those areas I listed. I don't have much choice.

JohnDoe1

bouicca21 wrote: »

Thamesmead may be a good investment if you are prepared to wait for Crossrail and want to cross your fingers that it really will boost prices in the area. Personally I think the area is ghastly. I agree you would be better off thinking about where you would be happy to live. What do you want in terms of transport connections, shops, cafes/restaurants? Work out the answers to those questions, then work out where to live.

But as I said before, I'm not going to be living there so it's purely investment and for renting out. So I don't mind waiting x number of years for the crossrail to bring it's rewards if it ever comes. But if it is that bad then no one will want to live there anyway...

Dan-Dan

JohnDoe1 wrote: »

Because the place to invest in property is london

Better let all the thousands of investors elsewhere in the UK know!

princeofpounds

Mitcham is about a billion times nicer than Thamesmead. I don't know it really well, been through a couple of times, but you just have to streetview it to see that.

Edgeware seems like typical boring north london to me, sprawl upon sprawl of terrace and semis although I'd be quite willing to be argued out of that position if someone knows it well.

I have no idea whether crossrail will have a spur to Thamesmead, I don't think it's a conclusion yet. But typically in my experience regeneration in London tends to rely on two things. The first is improved transport links, but the other thing that is often important is having good housing stock and amenity potential. An area can't gentrify if it's all council flats; you need properties that better-off people can pump investment into and somewhere to put the delightful coffee shop they doubtless want to frequent, and somewhere to push the pram when you go for a walk.

gordonbennet

I know Mitcham quite well but wouldn't want to invest there.

Property gurus often say it's better to buy the smallest place you can afford in the best location, rather than the biggest in the worst. Because that's where the demand is likely to be.

Therefore, if it really is only an investment (rather than somewhere for you to live), do a bit more homework. Maybe a studio in a really nice area might be in your budget? Failing that, look at transport links (especially tube if you're intent on London) and find out where the best paid people (who rent the types of property in your price range) commute from.

Failing that, look at Network Rail arteries with quick access to London. Nicer parts of Surrey perhaps?