Greenwich High Road apartments. Investment?
Discussion
My Father in Law is looking for some reasonable advice on whether the following is suitable for a buy-to-let. As far as I'm aware he around 40/50% deposit to put down on something like this in this development:
http://www.rightmove.co.uk/property-for-sale/new-h...
Are places like these being rented these days? He has currently negotiated a price of £250k down from £270k at the drop of the hat, which worries me some what as there is obviously little demand.
The things I can see it's favour are it is Greenwich (just) and the transport links look favourable.
Downside - it's an identikit 1 bed apartment, it's inward facing and is practically Deptford.
He's been to see the development and him himself who grew up in South London is happy location wise, but is the price about right?
Would you? Are there any other areas of SE London that are move favourable (has to be SE due to FILs location).
http://www.rightmove.co.uk/property-for-sale/new-h...
Are places like these being rented these days? He has currently negotiated a price of £250k down from £270k at the drop of the hat, which worries me some what as there is obviously little demand.
The things I can see it's favour are it is Greenwich (just) and the transport links look favourable.
Downside - it's an identikit 1 bed apartment, it's inward facing and is practically Deptford.
He's been to see the development and him himself who grew up in South London is happy location wise, but is the price about right?
Would you? Are there any other areas of SE London that are move favourable (has to be SE due to FILs location).
It's a brand new 1 bed flat so should need minimum maintenance but will probably give the least return as well. Do your research and see how much 1 bed flat are renting for in new developments in Greenwich.
I would want a minimum yield ((annual income rent - service charge - estate agent fees etc) / cost of flat) of 5%, ideally 7%+. Do check the service charge as the landlord will have to pay for this.
Canada water might be a better location as the jubilee line is good for both work (canary wharf, London bridge) and play (Bond street).
A house might offer better yield as there's no service charge, more bed rooms so can rent to sharers/family, fewer houses on market than 1 bed flats. Would be difficult to get a house for 250k though.
How long does he want to keep the property for? You'll also have to factor in the property's potential for capital gain when you eventually sell it.
Good luck.
I would want a minimum yield ((annual income rent - service charge - estate agent fees etc) / cost of flat) of 5%, ideally 7%+. Do check the service charge as the landlord will have to pay for this.
Canada water might be a better location as the jubilee line is good for both work (canary wharf, London bridge) and play (Bond street).
A house might offer better yield as there's no service charge, more bed rooms so can rent to sharers/family, fewer houses on market than 1 bed flats. Would be difficult to get a house for 250k though.
How long does he want to keep the property for? You'll also have to factor in the property's potential for capital gain when you eventually sell it.
Good luck.
OP, there are many developments in and around Lewisham station at the moment. A 2 bedder is around £200k and for my money, it seems a good investment option. New build, 2 beds, 15 mins on the train to Cannon Street, 20 mins to Charing Cross and the DLR will take you to Canary Wharf in 15 - 20 mins. Most young professionals are not going to worried about the fact that it is lewisham and anyway, if there are decent homes going up for 'yuppies' then I suspect that a bit of gentrification may occur to the surrounding shopping area and thus improve things in the long term. Finally, Blackheath and Greenwich are but reasonable walks away.
Check it out! FYI, I am not a developer of the flats and all this is IMHO and my own views. It just seemed to make sense and if I had the cash I would definitely buy to let there.
Check it out! FYI, I am not a developer of the flats and all this is IMHO and my own views. It just seemed to make sense and if I had the cash I would definitely buy to let there.
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