Flats make rubbish B2Ls. Discuss.

[d000hg]

This is very true. I did think about looking at new builds as you get a discount buying off plan and can negotiate pretty hard if you have plenty of cash behind you. They are also very well designed and attractive to young families that are going to stay a good number of years. I am just nervous about the quality of them and that fact some new estates can look very dated over the next decade compared to older houses. Maybe it's just because I am not used to newer houses having always lived in solid old ones.

I'm not really a fan of modern housing - they are sturdy enough but so noisy with the modern walling techniques. On the other hand they do maximise space.

I never thought we'd buy a new-build after looking round a few typical new-build developments - tiny box room, everything oozing cheapness, etc - but we discovered there are new build developments, and new build developments. In more expensive areas, the developments can be much nicer. There's a really nice one in Durham which we sadly couldn't afford to buy in - houses with high ceilings, big wide hallways, etc - they don't really feel like new builds at all.

But the ones they squeeze into every bit of land and advertise "buy from only £89,000" are horrible although probably far better as rental properties.

[northernladuk]

There's a really nice one in Durham which we sadly couldn't afford to buy in - houses with high ceilings, big wide hallways, etc - they don't really feel like new builds at all.

Got a link for this? Would like to have a look.

[b0redom]

It depends where you are investing really. Here in London, the majority of homes are flats and provide a fairly decent return in terms of rental income and long term equity growth. The average rent rose in London by £29 in Feb 2014 according to the report below.

As you say however, ground rent and service charges are not cheap and have to be factored in.


UK rental yields reach 18-month high:

UK rental yields reach 18-month high

I was considering in W. London where I currently live, but the market seems to have gone completely bonkers. Stuff is selling for over asking price before the ads even hit Rightmove etc, so I'm considering further afield.

Do you guys with multiple properties look to buy within a radius of home in case of emergencies, or do you go for wherever is cheap with a good potential return? Oop North, where my folks are from, it seems possible to get terraced places for £80k, with a claimed rental income of ~ £500/month.

[sasguru]

I'm firmly of the opinion that BTL is the only inflation-proof way to sort out your retirement. What else are you going to do - the financial industry products: pensions/annuities etc etc are all cons designed to make their administrators lots of cash.
With BTL hopefully someone (several people) pay off your mortgage and then you have a pure cash generator (minus maintenance costs) for your old age, inflation-proof since rents will probably rise with inflation.
The leasehold argument I think is only valid for a short lease - the usual 125 years is more than good enough for an investment.
But my one luckily is share of freehold - I think this is becoming increasingly common in London so find a non-leasehold one.

[Martin@AS Financial]

I was considering in W. London where I currently live, but the market seems to have gone completely bonkers. Stuff is selling for over asking price before the ads even hit Rightmove etc, so I'm considering further afield.

Do you guys with multiple properties look to buy within a radius of home in case of emergencies, or do you go for wherever is cheap with a good potential return? Oop North, where my folks are from, it seems possible to get terraced places for £80k, with a claimed rental income of ~ £500/month.

I live in Ealing and I 100% agree with you - it seems that property isn't even making it onto Rightmove etc before it is under offer.

I would say to look where you get the best rental return even if it is a bit further out. Because of the way house prices are going in London, it is getting harder to meet the lenders BTL rental calculation which tends to be - loan size x 5% / 12 x 125%. This means that a lot of the time, you have to put down more than the standard 25% deposit depending on the lender you go to.

[d000hg]

Got a link for this? Would like to have a look.

Couldn't find a great example but the postcode is DH1 4GS and the road is called Highgate. It's right underneath the railway station, if you know Durham.

I don't know what the hell the owners were thinking, but here's one very badly decorated example:

4 bedroom house to rent in Highgate, Durham, DH1, DH1

Here's a picture, the main point is they were forced by the council to not make them look like a boring row of identical houses: