Reply to: BTL in London

[lukemg]

1. DONT talk to an IFA, DYOR, start with fool.co.uk.
2. Property has edged down from the peaks but hasn't reached anywhere near long term average against income. That says it could fall again or stagnate for years. Yes, london market is different but I don't see it going up far when the cutbacks and removal of QE bite - Q4 this year.
3. It's too easy to build more flats, buy quality areas etc if poss.
4. I personally don't want the grief of managing properties, even through an agent and it tends to be illiquid.
5. Too big a bet on one sector - residential property (my own house is enough exposure + tax free). Consider proportions in Trackers, HYP, bonds and a small percentage in more exotics - Latin America, emerging markets
Apart from that - go for it...

[EternalOptimist]

Just because your missus is useless in letting doesn't mean MF will be. Obviously you are a match made in heaven two failures together.

your finger will wear out before we let you neg Russell again

-damn

[russell]

I wouldn't bank on increasing rents, my missus has 3 of them and all three have seen the rent fall over the last couple of years.

You missus not the sharpest tool in the box, your meant to put the price up.

[doodab]

It's all come out of bonds and I'm deciding what to do. Re-invest or BTL. 5 years are the best returns but it's still 5%. Not sure if a BTL in London with increasing rents over 5 years and a possible capital gain is risky or not risky.

I wouldn't bank on increasing rents, my missus has 3 of them and all three have seen the rent fall over the last couple of years.

[sasguru]

I've been mulling getting back into the BTL market for some time now, but can't be fooked with the hassle.
I would look into buying a flat (one or two bed) walking distance from the City. As there is a limited supply of such flats, they will always keep their value (or at least there's no propect of a big fall any time soon).

When I was doing BTL that was my strategy, but then I bought for less than £200K

The point is whether you can make a decent return after expenses. You'd have to do your sums.

[d000hg]

Yeah MF what do you consider to be 'London'?

[doodab]

Does 400k buy anything in a decent place though in London?

Depends where you look. Prime zone 1 stuff is probably out of the question although you might find a few in the less nice places like Bermondsey. Personally I would look at nicer areas in zone 2-3 with good transport links.

[Scrag Meister]

It would be no mortgage, so it's a pure return basis.

Does 400k buy anything in a decent place though in London?

Purpose built or victorian conversion.

Reckon you could manage a 2 or perhaps small 3 bed in Finsbury park.

Depends where you go.

I rented in Finsbury Park for 2 years at 1300 per month for a nice 2 bed flat.

We looked at buying a small 3 bed across the road in a victorian conversion, basement flat, £400k!!, ended up buying a big 4 bed house in Tottenham for the same money. As I say depends where you want to be.

Try this findaproperty

[russell]

Cough.

[Clippy]

If I were you I would seek advice from sources other than this forum, I wouldn't invest nearly half a million based on the advice here.

Cough.

That's a bit defeatist, now is a great time to buy, if you have cash you can get a great deal on auctions from all the plonkers who took 105% mortgages, by the time next year comes Interest rates will have risen which will squeeze even more of them into repossession. Also potential first time buyers have to rent as they can't afford 25% deposit that is required = demand.

[russell]

Similar here, except the house was dirt-cheap anyway; interest-only mortgage is £61/month, let out for £400/month.

Oh, it's an imaginary purchase . From half-remembered property shows £400k will get a decent family home, certainly something you can let happily.

This creates a paradox since your advice is not to take your advice.

Good point, I would seek the advice of an IFA though. Im sure we are all armchair investors but do we really know what we are doing?

[d000hg]

Cough, don't want to brag but I'm going to, my 1st let house is 0.49% above base

Similar here, except the house was dirt-cheap anyway; interest-only mortgage is £61/month, let out for £400/month.

It would be no mortgage, so it's a pure return basis.

Does 400k buy anything in a decent place though in London?

Oh, it's an imaginary purchase . From half-remembered property shows £400k will get a decent family home, certainly something you can let happily.

If I were you I would seek advice from sources other than this forum, I wouldn't invest nearly half a million based on the advice here.

This creates a paradox since your advice is not to take your advice.

[russell]

It's all come out of bonds and I'm deciding what to do. Re-invest or BTL. 5 years are the best returns but it's still 5%. Not sure if a BTL in London with increasing rents over 5 years and a possible capital gain is risky or not risky.

If I were you I would seek advice from sources other than this forum, I wouldn't invest nearly half a million based on the advice here.

[MarillionFan]

If only I had a crystal ball I'd might match your move but something inside is telling me, patience, patience.

If you do, it's the best yield through rent you're after. Forget making a decent profit from sale that's ten years away.

Our idea instead, for the moment, is to use the cash for the offsprings education when that time comes.

It's all come out of bonds and I'm deciding what to do. Re-invest or BTL. 5 years are the best returns but it's still 5%. Not sure if a BTL in London with increasing rents over 5 years and a possible capital gain is risky or not risky.

[scooterscot]

I think you should do it. You'll take all those City types to the cleaners.

And hopefully you'll earn so much that you won't be able to relate yourself to mere mortals here on CUK (zeity excluded).

Massive amounts of cash does not really do it for me. Shocker. I'm comfortable as I am.

If those I know are happy then I'm happy.