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Looking at properties up to £200k there is very little around with much potential for uplift.
There's not many options other than a leasehold property within 10 miles of me (W.London) which is quite depressing, but not as depressing as the ROI each month!
The problem is I still think LL's are investing in the SE in hope of long-term capital growth which I'm struggling to see happening.
I've run the figures through the spreadsheet and allowing for a 3% CG uplift every year (which I can't see happening), it looks 'challenging' in the SE to say the least.Multi-lets seem to be the only way to make a decent return (which is what I've focussed on) but it's getting tougher to find the right properties, and leasehold properties don't lend themselves well to this.
You don't mention holiday lets? Have you looked into those in the South East?
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
I'm not sure in W.London there are too many holiday lets available? I'm trying to keep any future purchases to within a sensible drive as I'm managing all properties myself, can't be doing with LA's any more.
Hi Adam,The south coast is within 1.5 hours of where you live, and is a holiday let hotspot. Local holiday let agents will manage the property for you. Having said that, I am sure there would be demand for short term accommodation in West London. Many people come to the capital for all sorts of reasons - conferences, business meetings, events, visiting family, having hospital treatment etc. - i.e. not always on holiday - but they still need somewhere to stay.
I'm afraid I've given up trusting companies to look after my properties as they just don't seem to care even though they're getting paid, so if I wasn't managing myself I'd rather not bother. 1.5 hours away is not sounding attractive, as I've found problems can sometimes need immediate resolution on site.
The problem is that there are “cheap” money in the area from people who are happy to only get a 1% more than from their bank account. They do not see property as a business but they have to much money and brick and mortar are safe in their eyes.
I live in SE and 100% agree with what you are saying so I have stopped investing in my local area
Totally agree. A guy I know has 3x properties in the local area and is clearing probably £1k tops off all 3. That's not an investment but a millstone!
I never underestimate how much spare £££ there is floating around in the SE, looking for something to invest it in.
I too am in London and looking for something to invest in and find myself in the same boat.
I am currently getting a paltry 1.36% on my money - I have even considered (for a short while) buying for £600k which would get me not much more that 2% on my money.
I have a full time job and also do most of the small diy myself, therefore I prefer to purchase close to home.
I would look to hold the property for say 20 years and over that time I would expect it to at least double in price.
It was the SDLT that has so far stopped me going ahead!
In general you will find for standard 75% LTV BTL, yield of 6% will not allow you to obtain mortgage if you want to build a property portfolio. Many landlords in London (mostly yielding 2 to 3%) will come to realise this when their current mortgage deal ends and needing to remortgage, to only find out they can't.
Standard BTL with 75% LTV will not be able to refinance with yield of 6% in general. And you rightly pointed out, most landlords in London has yield between 2 to 3%. The realisation will come when their current mortgage deals ends and unable to remortgage.
I've got a flat on 75% LVT, 4% yield. 2 year term is coming up, but my mortgage broker doesn't seem to think there will be any issue getting a new deal