Is this a good time to put money into real estate?

padington

Broken_Biscuits wrote: »

If you are buying purely as an investment, consider buying outside of your home town.

At the different ends of the country, both Bristol and Manchester are expected to see house price increases above UK average. Birmingham too for a middle approach if you are looking for the closest to your home town.

50k in a bank account will safely earn you 3-5%.
50k as a 25% deposit on a 200k property where prices are expected to rise 25% in 5 years should earn you considerably more.

Do your own research obviously.

Homes under 6 feet of water in Manchester might just have become a bigger liability than an asset.

That Nadeem bloke made a very good call in his blog. Buy well away from possible flooding. Two more years of upside in cheap London or outside then start looking overseas.

Broken_Biscuits

padington wrote: »

Homes under 6 feet of water in Manchester might just have become a bigger liability than an asset.

That Nadeem bloke made a very good call in his blog. Buy well away from possible flooding. Two more years of upside in cheap London or outside then start looking overseas.

I'm sure if marketed correctly there will be a buyer at the right price.

Now with indoor swimming pool.

Gulash

padington wrote: »

Homes under 6 feet of water in Manchester might just have become a bigger liability than an asset.

That Nadeem bloke made a very good call in his blog. Buy well away from possible flooding. Two more years of upside in cheap London or outside then start looking overseas.

I don't get it, you recommend me to buy in London and invest for only two years, or otherwise to buy overseas??

Generali

Gulash wrote: »

I don't get it, you recommend me to buy in London and invest for only two years, or otherwise to buy overseas??

Property isn't a short term investment, it's a very long term one. Costs of buying and selling are high and the market is very illiquid.

padington

I

Gulash wrote: »

I don't get it, you recommend me to buy in London and invest for only two years, or otherwise to buy overseas??

Property is a horse often best left to run. If you make sure it makes you a small yearly yield, you can't go too wrong. The worlds population is only going one way fast.

I think this year will be yet another year the mainstream house price pundits under estimate the power of the market forces. However it's not a great time to be buying in the hope for a quick flip. Neither is it, in my opinion a wise time to sell, just yet.

However, If I had dry powder right now I would be looking at crowdfunding tech firms, self driving tech firms, block chain tech firms, advanced battery making firms, virtual reality tech firms and a side bet on google and Facebook carving up most of the known world between them.

The digital age is just about to fuse with reality and the upside potential for those that back the right players will be very significant. Alternatively old established firms or whole industries may get blown away over night, so be careful.

If you are yet to buy the roof over your families head however, I would suggest you do that first. Stay near cities that are popular with the tech industry, that's the future.

Gulash

Can you tell me please which properties are most sought after??? In Greater London. Studios, 1bed flats, 2 bed flats etc?

Bennifred

The spoons are in a drawer in the kitchen.

Gulash

Gulash wrote: »

Can you tell me please which properties are most sought after??? In Greater London. Studios, 1bed flats, 2 bed flats etc?

Anyone serious giving some reliable info?

padington

Gulash wrote: »

Can you tell me please which properties are most sought after??? In Greater London. Studios, 1bed flats, 2 bed flats etc?

With the new buy to let rules you will struggle to make a penny yield profit whilst still having all the work a landlord has to do and will be gambling that the place increases in price. This may or may not happen but you will certainly have to pay capital gains tax on the profits.

For some this still makes a worthwhile investment whilst others think small time landlords in the South East are crazy to stay in the market given the changes. Are you sure you are completely aware of the tax changes that are coming in and that more stringent rules may follow which may undermine your business plan ?

I say this because If you are aware and have done your homework you would know about the key web sites that track home prices and be aware of the importance of knowing the specific area you intend on targeting to buy and done quite a lot of googling and may not have asked this question.

tkane

Gulash wrote: »

Can you tell me please which properties are most sought after??? In Greater London. Studios, 1bed flats, 2 bed flats etc?

2bed, 2bath if purely for rental demand. Within zones 1-3 these fly out on the same day they are advertised.