BTL - top, middle or bottom?

[marctwo]

We are considering purchasing a BTL property in a new build high rise (25 floors) in London. We have been told that for each floor you go up, the cost higher. The question is, do you go for low cost / low desirability or high cost high desirability? Or play it safe in the middle?

[Fotic]

I suppose it depends on what your views on long term house prices are.

I'd get the best you can afford however as BTL is all about leverage.

[Burrow01]

BTL is all about avoiding voids (so to speak)

I would go as high as you can to make the property more desirable to rent - assume the rents also increase the higher you go?

[marctwo]

Thanks for the helpful advice. My concern was limiting the potential market too much by having too high a rental value.

[98elise]

marctwo said:

Thanks for the helpful advice. My concern was limiting the potential market too much by having too high a rental value.

Talk to a local agent. As has been said above, you want something thats easy to rent above all else. The agent should be able to tell you what is in demand.

[zuby84]

It depends on what the price difference is between the floors, the views and if you will get a proportionately higher rent in the top floor apartments compared to the higher purchase price. If it's s desirable area; then the difference in voids between top/middle floor may be negligible. Just need to do the sums.

[Burgmeister]

Depends on how many floors there are.

if there are three the top and bottom will be most desirable.

if there are 100 the middle and very top floors will be most popular.

[sideways sid]

Also, consider the likelihood of other buildings changing the views from the top, middle and bottom of the building you're looking at.

A friend bought a smart apartment on 16th floor of a block in London's Docklands, aware of a building site next door, but unaware that it had pp for 20 stories until he was well into the process of buying. He successfully negotiated a discount but later found out that some of his neighbours hadn't known / negotiated and are disappointed that the panoramic view they paid for is now a view into someone else's lounge!

Flats higher up will be much easier to let, but in the absence of a view, the cheaper lower flats in the same location may offer better yield.