Buy in Barnet, Richmond or Walton on Thames??

strawberries1

Dear MSE friends,

I'll appreciate your insight please.

I'm a first time buyer and I've been trying to buy for about 5years but not been able to follow through because of change in personal circumstances working away from main base and relationships.

I've managed to save #100,000gbp and earn #40,000, so I can afford a #300,000 mortgage (apologies US laptop).

I've rented my current flat for 5years and been renting in North London for the last 10years. My eyes water when I calculate my rent. #990 in Enfield North London.

I might move away for work for about a year next year but I'm tired of paying off someone else's mortgage.

I've decided to buy whether I go away for work or not but will like some thoughts on areas and a look into your crystal balls

I like Barnet cos it's a nice area and close to where I currently live so familiar areas nearby but two points I'm pondering on.

First I feel Barnet doesn't have a big/good rental market so my yields will be low; secondly it's so quiet and as I'm still single at 38 I need to socialise more so perhaps I should move more central?

The other area I like is Richmond and Walton on Thames. I feel I will get better rental yeilds in Richmond not so in WoT. This area is closer to Fulham which has a more vibrant vibe (pardon the pun) to it I don't know this area very much so will begin to explore it further.

I'm looking for a 2 double bedroom maisonette or flat and for these areas it's likely to be ex council or ex housing association property. I'm female and it won't be my forever home but I have to get my foot on the first rung and not wait another 2years to see what happens with work and love.

So simply put, for a single mature adult looking for a 2bed property to live in and then rent out in a couple of years will you recommend Richmond, Walton on Thames or Barnet for higher capital growth and rental yield as I'm getting on the ladder so late? I'm going to see a property in EN4 tomorrow and I think I might like it

Thank you!

hazyjo

As a first time buyer, you may not get consent to let on your mortgage and are very unlikely to get buy to let.

Dig out the programme on landlords/tenants last week, and read up on some of the posts on here. Being a LL is a business. I would only do it if I literally had no other choice. It's not for everyone.

Obviously nobody can predict the market though. Prices may rise quicker than you can save, or they may drop. Whatever you do will be a bit of a gamble. What if you're not permitted to rent your flat out in a year's time?

Jx

strawberries1

I have no problems being a landlord in a year's time so that's not an issue.

It's the capital appreciation and rental yields of the area I'm interested in.

Thanks for your contribution.

hazyjo

hazyjo wrote: »

As a first time buyer, you may not get consent to let on your mortgage and are very unlikely to get buy to let.

strawberries1 wrote: »

I have no problems being a landlord in a year's time so that's not an issue.

The above bit I mentioned would be an issue though. As I said... what if you don't get consent?


Jx

Guest101

Wow you can afford both your mortgage on the London property and living costs whilst away - congrats!

economic

i would never buy a purpose built flat just to "get on the ladder".

ElsieMonkey

Richmond is a very expensive affluent area. I'd wonder if you could get a maisonette/2 double bedroom flat for 300k in the area??? (If you can, is it really actually in Richmond?). We currently live in a 2 double bedroom flat in Pinner (NW London, in Harrow borough) and have sold it for 405k. 2 bed flats around here got for anything from 360k up to 650k. And although Pinner is very nice, Richmond is nicer. Richmond is one of the most expensive boroughs in London.

Since it's so affluent, already up and came (as opposed to up and coming), and so expensive, if you're looking for an investment I'm not sure I'd buy there, just because in my opinion there's not much room for growth left (unless you're talking about keeping a property for decades).

I know Richmond personally, and it's a safe bet for families who can afford it (but families with that kind of money tend to want houses, not flats). Not sure about the demographic in Richmond for bottom of the market flats (because to buy a flat in Richmond for that price it really would be bottom of the market).

I think there's more lively, areas in London to buy a flat, areas which are nice but still have room for growth, which would have a larger market of young professionals who would want/need to rent (flats do tend to be for first time buyers I think, unless it's a ground floor property in which case might also attract elderly down-sizers).

Sorry I don't know Barnet or WOT personally to comment on those.

I'm no expert, but this is just my opinion based on experience of owing and selling 3 flats in London, and being from London and knowing different areas.

economic

be careful what you buy though. some areas maybe labelled as up and coming but they just wont be in demand (if you ever then sell) as the regeneration just doesnt happen. also most areas of london have gone up a lot so maybe its better to buy in a safe area where its already nice and maybe scope for a bit more improvement - maybe nows the time to buy in an area where your capital will be safe?

economic

you could buy a £400k one bed in a nice area within zone 2/3. i would do that rather then buy a 2 bed in a purpose built in a not so nice area far out. rental yields for one beds are also higher. if you plan to keep it very long term then that would be a good option for you.

ElsieMonkey

Yes I wouldn't gamble my money in a really rough area which promises regeneration but shows absolutely no signs of it, but likewise I wouldn't put my money into a really affluent area either.

strawberries1

Thanks for your contributions.
£300,000 is my maximum.
The property I've spotted in Barnet is on a nice road with houses, a couple of maisonettes and this 2 storey block.
It's on for £275,000, I'm considering offering £250,000 for t.