best type of property investment

[jameshaworth]

With regards to the current market and keeping things in the UK where do you think is the best area to invest in in property.

I have heard a successful developer is now looking at buying apartments in leeds by offering low offers in centrally located flats - logic being that they are not selling so may get a deal and he thinks they are undervalued and you can't build new property in LS1 (unless you are knocking things down)

I have also heard of people doing the same in commercial property - particularly storage space and land in particular.

are there any particular areas you favour and why?

Personally I will be not buying for a few months yet to see how things begin to unravel but i'm interested in your thoughts.

Thanks

[shadowninja]

If they are undervalued, why haven't they sold? Because people can't afford them? Then they're overvalued.

[ACEparts_com]

I was reading just yesterday or the day before about £240,000 flats being sold for £71,000 in leeds. I can send the newspaper clippings if you like? Think it was in the mail.

[ab@]

ACEparts_com said:

I was reading just yesterday or the day before about £240,000 flats being sold for £71,000 in leeds. I can send the newspaper clippings if you like? Think it was in the mail.

Yep - read that too.

Spoke to someone from a King Sturge in Manchester yesterday, she seemed to think that the market for apartments had bottomed out and that now was the ideal time to buy as an investment, especially as developers are sh**ing themselves and dying to get rid.

If i was investing - agricultural land = caravan sites = license to print money.

[ACEparts_com]

I've been doing alternative property investments for years; renting lovely properties for less than the landlord is paying in interest only. I call it subsidised housing and also offers the equivalent of property 'dating'; find a feature you don't like and make sure you note it ready for the marriage later on.
In the mean time i've been building up a real, non speculative business.

[AMZ1]

http://www.dailymail.co.uk/news/article-1028492/Re...

[Hobo]

I'm sorry to p!ss on all you're parades, but the prices of apartments, whilst dropping, are not doing so to the level you are saying.

The apartment in question, bought for circa £240k is in a terrible area & was never worth anywhere near that. I tip my hat to the developer who managed to get some idiot to hand over that much money as 3-bed apartments (which there is a very limited market for) would only ever be worth circa 50% of that figure. The other reason the loss of money is that they are simply horrible apartments, red brick, cr@p fixtures/fittings. Ok, when new they may look ok, but they soon date & as such 10 years down the line this happens.

Its still the case, that it you build something to a high quality in a good location that it will sell. I have just finished a development in Leeds of apartments. When we started in Nov'07 we were going to put the apartments on the market for £125k each, however as the project went on & I compared to others on the market, we decided to put them up for £135k. 2 weeks into advertising & 3 apartments have sold at asking price. I'm half tempted to raise the price a little of the remaining properties as if I don't get the interest I'll just keep to rent as that market is booming at present.

The days of building cr@p & selling for a premium have gone as everyone is doing it (or think that they can), however be a little more selective in where you build & to what standards & all seems well still.

Edited by Hobo on Wednesday 25th June 07:38

[stimmers]

jameshaworth said:

With regards to the current market and keeping things in the UK where do you think is the best area to invest in in property.

I have heard a successful developer is now looking at buying apartments in leeds by offering low offers in centrally located flats - logic being that they are not selling so may get a deal and he thinks they are undervalued and you can't build new property in LS1 (unless you are knocking things down)

I have also heard of people doing the same in commercial property - particularly storage space and land in particular.

are there any particular areas you favour and why?

Personally I will be not buying for a few months yet to see how things begin to unravel but i'm interested in your thoughts.

Thanks

I bought an apartment in Leeds last week. I got a 40% discount on the asking price from the wealthy owner who still made money on his investment. I can seriously under cut other like for like apartments in terms of rental price and still make a monthly profit. Rentals in Leeds are still very strong for good apartments.

Im not thinking about capital appreciation, although -40% is a nice place to start, my money will come from a few hundred quid every month and t didn't cost me a penny to purchase the place. See where we are in 6-7 years time !!!

I'll continue to offer on deals like this in central Leeds. In fact i have someone looking around two repossessed flats there this morning.

If your looking for a good solid investmet, then i cannot reccomend looking into land in Argentina enough. Some serious returns to be made. Anyone wants more details can e-mail me

[shadowninja]

Hobo said:

The days of building cr@p & selling for a premium have gone as everyone is doing it (or think that they can), however be a little more selective in where you build & to what standards & all seems well still.

Indeedy. As stated a few times before, a couple of years ago, you could buy a run-down property in need of renovation, take a huge st in every room, sell it and make a killing. Nowadays, only the professionals will profit.

[FUBAR]

There's several commercial properties in Jones Lang Lasalle's July auction, with decent tenants, showing yields in excess of 9%

Im staying clear of Resi for a while. Leave that to you bravehearts

[NoelWatson]

stimmers said:

jameshaworth said:

With regards to the current market and keeping things in the UK where do you think is the best area to invest in in property.

I have heard a successful developer is now looking at buying apartments in leeds by offering low offers in centrally located flats - logic being that they are not selling so may get a deal and he thinks they are undervalued and you can't build new property in LS1 (unless you are knocking things down)

I have also heard of people doing the same in commercial property - particularly storage space and land in particular.

are there any particular areas you favour and why?

Personally I will be not buying for a few months yet to see how things begin to unravel but i'm interested in your thoughts.

Thanks

I bought an apartment in Leeds last week. I got a 40% discount on the asking price from the wealthy owner who still made money on his investment. I can seriously under cut other like for like apartments in terms of rental price and still make a monthly profit. Rentals in Leeds are still very strong for good apartments.

Im not thinking about capital appreciation, although -40% is a nice place to start, my money will come from a few hundred quid every month and t didn't cost me a penny to purchase the place. See where we are in 6-7 years time !!!

I'll continue to offer on deals like this in central Leeds. In fact i have someone looking around two repossessed flats there this morning.

If your looking for a good solid investmet, then i cannot reccomend looking into land in Argentina enough. Some serious returns to be made. Anyone wants more details can e-mail me

"Im not thinking about capital appreciation, although -40% is a nice place to start"

Isn't that the going rate?

http://www.telegraph.co.uk/finance/financetopics/f...

[m4tt]

stimmers said:

I bought an apartment in Leeds last week. I got a 40% discount on the asking price from the wealthy owner who still made money on his investment. I can seriously under cut other like for like apartments in terms of rental price and still make a monthly profit. Rentals in Leeds are still very strong for good apartments.

Im not thinking about capital appreciation, although -40% is a nice place to start, my money will come from a few hundred quid every month and t didn't cost me a penny to purchase the place. See where we are in 6-7 years time !!!

I'll continue to offer on deals like this in central Leeds. In fact i have someone looking around two repossessed flats there this morning.

If your looking for a good solid investmet, then i cannot reccomend looking into land in Argentina enough. Some serious returns to be made. Anyone wants more details can e-mail me

When you say it didn't cost you a penny to purchase the place, do you mean you mortgaged it sufficiently to advance the full amount? I thought most lenders didn't like that?

[.. al]

You pays your money, you takes your choice.

Brandeaux is doing a number of property funds..

http://www.brandeaux.com/mediaupdatesnew/pdfsmedia...

.. that one seem to be doing constantly well. The one in the link isn't to a series of rundown dosshouse digs, but to new, smart tailor made accom which is in keeping with the g'ments thinking on providing more university education. Long term guaranteed ground rent and student accommodation being a niche market in constant demand has meant strong performance and low volatility.

http://www.guardian.co.uk/education/2008/aug/20/re...

http://www.guardian.co.uk/education/2008/apr/14/hi...

http://www.dcsf.gov.uk/hegateway/uploads/NEWAddres...

http://www.telegraph.co.uk/news/newstopics/politic...

At the moment, just to stand still and not lose in real terms, you'd need a savings return of about 7.4% if you're a HRT. If you have a decent sized portfolio, there's a convincing arguement to be had for putting a slice of it into something like this, to offset the corrosive effect of inflation on savings.

I wouldn't wipe my worse dogs arse with The Mail. Tired, lazy hacks who live off other people's ability, discarded titbits and rumour mongering.

I don't work for Brandeaux by the way - but if anyone has any questions about it, drop me a line.