If you could buy in any London Borough...
Discussion
I will be getting my hands on a lump sum soon, and was wondering what the wisdom would be in buying an investment property, it will likely be a smallish 1/2 bed flat, but I figure its better than whatever else I would potentially do with the money...
Question is, where would you buy if you could, I reckon the smart money could be somewhere like Kings Cross, which is currently undergoing huge transformation, but it still isn't cheap as its very central, I also hear Elephant and Castle is going to be sorted out, so maybe that is worth a shout? Failing that possibly out east, I know most of it has come up already, but possibly clapton/walthamstow?
I would think budget will be £350k, I'd look to rent it out as I already have a property I live in...
Question is, where would you buy if you could, I reckon the smart money could be somewhere like Kings Cross, which is currently undergoing huge transformation, but it still isn't cheap as its very central, I also hear Elephant and Castle is going to be sorted out, so maybe that is worth a shout? Failing that possibly out east, I know most of it has come up already, but possibly clapton/walthamstow?
I would think budget will be £350k, I'd look to rent it out as I already have a property I live in...
are you mortgaging it or is it cash?
if mortgaging you want the best possible capital growth to keep improving your LTV come remortgage time and to allow you to draw down if the need arises.
I am quite frankly evangelical about the east. My flat has turned out to be a fantastic investment - valued recently at 375-385k which is quite a bit more than I paid for it 3 years ago.
If I were you I would stick east - homerton/victoria park/bethnal green - you know the areas - close to shoreditch so its a tenner in a cab and easy to get to work.
the alternative is you buy 2 flats slightly further out but for my money I'd buy the biggest 1 bed you can find which should rent out 350-375/week ish. If you do end up looking east then drop me a line and I'll do what I can to help...
if mortgaging you want the best possible capital growth to keep improving your LTV come remortgage time and to allow you to draw down if the need arises.
I am quite frankly evangelical about the east. My flat has turned out to be a fantastic investment - valued recently at 375-385k which is quite a bit more than I paid for it 3 years ago.
If I were you I would stick east - homerton/victoria park/bethnal green - you know the areas - close to shoreditch so its a tenner in a cab and easy to get to work.
the alternative is you buy 2 flats slightly further out but for my money I'd buy the biggest 1 bed you can find which should rent out 350-375/week ish. If you do end up looking east then drop me a line and I'll do what I can to help...
Personally I wouldn't invest in UK property (unless primary residence) at this point in time.
Many (most) will disagree, but it is worth considering the potential downside:
1). Increased interest rates.
2). Change in tax treatment of property.
3). Something resulting in reduction in foreign investment.
4). Further impact of credit tightening.
Many (most) will disagree, but it is worth considering the potential downside:
1). Increased interest rates.
2). Change in tax treatment of property.
3). Something resulting in reduction in foreign investment.
4). Further impact of credit tightening.
kiethton said:
Bromley North - Its where I'm currently looking
Rumors of a DLR extension and a far better area so you would get a sizable flat for the money (or 2 smaller 1 beds). Other than that I'd look at Woolwich/Depford/Greenwich/Blackeath/Brockley/Forest Hill cheap now but on the up big time.
Anecdotal, but I have friends in Brockley / Honor Oak, and it's a surprisingly nice part of town. Plenty of green space, some great little independent bars and shops with a nice village feel, yet insanely well connected. Within a ten minute walk you have mainline services into London Bridge, Charing Cross and Victoria, plus the Overground and (from Lewisham) the DLR. Whole area is well served by buses and night buses. Failing that, I'd look at anywhere along the ELL corridor to Clapham Junction, as that area has gone from being served by tired and dirty infrequent Southern services to a metro service every few minutes. Even on the train out of Victoria, you can see the money slowly creeping southwards. Ditto out of London Bridge.Rumors of a DLR extension and a far better area so you would get a sizable flat for the money (or 2 smaller 1 beds). Other than that I'd look at Woolwich/Depford/Greenwich/Blackeath/Brockley/Forest Hill cheap now but on the up big time.
Failing that, slightly longer term, what about places on the eastern end of Crossrail?
jdw1234 said:
I don't think Elephant and Castle will ever be anything other than a s
thole.
thole.
they've been saying it's going to be gentrified for years and it's still a sthole. Still, it's convenient for getting into the City and is rentable for the BTL mortgage.Have you considered Stretham/Tooting? I think there's money to be made there over the next 5 years even if, again, you probably wouldn't want to live there yourself. (Still much better than E&C)
You might also consider outside of London in the commuter belt - Sevenoaks, Tonbridge Wells or even Brighton etc.
Investing in London/South East property now is a very good idea but it won't always be as good as the current gains are making out.
okgo said:
...I figure its better than whatever else I would potentially do with the money...
Make sure you do the maths before you part with the cash. How does the potential investment measure up to just pouring it in to your existing mortgage? Not as exciting but might be the best bang-per-buck.The Stiglet said:
jdw1234 said:
I don't think Elephant and Castle will ever be anything other than a sthole.
thole. they've been saying it's going to be gentrified for years and it's still a sthole. Still, it's convenient for getting into the City and is rentable for the BTL mortgage..
http://www.lendlease.com/en/emea/united%20kingdom/...
BJG1 said:
Battersea. Shed loads of redevelopment going on around the power station, most of it is lovely and pretty quiet and it's just over the river from one of the most expensive places on earth.
I would have said that but not on his budget. Been looking myself and it's pricey unless you want ex-council, which is much harder to rent as those estates are known to be unsafe.I would have said that but not on his budget. Been looking myself and it's pricey unless you want ex-council, which is much harder to rent as those estates are known to be unsafe.
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This, plus a lot of the capital appreciation of the major development is priced in, to an extent...the money would go far further a little further out - also yields are typically higher (4-5% plays 5-7%)
blindswelledrat said:
Im not sure you're right. The current regeneration is on a phenominal scale. If I were investing I would definitely consider it
http://www.lendlease.com/en/emea/united%20kingdom/...
This has been in play for some time now and I didn't make the previous comment without knowing about it. Indeed there has already been some noticeable development since 2010 - a few new restaurants, some shops and new apartments etc. But the sheer fact of the matter is that it's still not a very nice area and it doesn't feel particularly safe. http://www.lendlease.com/en/emea/united%20kingdom/...
This is an interesting recent article: http://www.theguardian.com/local-government-networ... that shows some of the 'regeneration' work, which the council are keen to point out is not gentrification. The difference being that those on benefits and reliant on state supplied housing will still remain in the area and arguably, the associated crime and unemployment will also exist. IMHO, it's not enough to say things look nicer in the borough, the fundamental problems still remain.
Morally, what the council is doing is arguably a good thing - they aren't forcing people out of their homes like the Scottish Clearances but from a private investor's standpoint, what is the justification to support a rise in house prices if wealthier people aren't attracted to the area? If crime, unemployment and a bad image remain then why would people want to live there when they can move to a nicer area?
It's flawed Utopianism.
You know more than me obviously. I was chatting to a chap from Lend Lease a while back about it (the developers) and they had a much more positive view of it and I understood it involved many £1m+ apartments which were already attracting a large amount of interest from foreign investors. It was all anecdotal, obviously, so you're probably still right but I do know it is supposedly kicking off on a large scale early next year.
The Stiglet said:
BJG1 said:
Battersea. Shed loads of redevelopment going on around the power station, most of it is lovely and pretty quiet and it's just over the river from one of the most expensive places on earth.
I would have said that but not on his budget. Been looking myself and it's pricey unless you want ex-council, which is much harder to rent as those estates are known to be unsafe.Safe bet would be somewhere like Islington.... You can get a 1 bedroom for approximately £260kish and should be able to rent for £1100/£1200ish per month.
Somewhere a bit nicer in the borough will cost more i.e £300k but should rent for £1300/£1400ish..... might even be possible to get a 2 bedroom adn rent both rooms and the front room out. Preferably somewhere nearer to Angel or Hoxton/City
For somewhere a bit cheaper and further out Bounds Green, Finchley,etc (in Haringey) are nice areas and 2 beds are readily available for approx £260-£280k and they are in zone 3 so travel is a bit cheaper for commuting.
Somewhere a bit nicer in the borough will cost more i.e £300k but should rent for £1300/£1400ish..... might even be possible to get a 2 bedroom adn rent both rooms and the front room out. Preferably somewhere nearer to Angel or Hoxton/City
For somewhere a bit cheaper and further out Bounds Green, Finchley,etc (in Haringey) are nice areas and 2 beds are readily available for approx £260-£280k and they are in zone 3 so travel is a bit cheaper for commuting.
Edited by Froomee on Tuesday 26th November 17:02
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