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  • London Property Market

    London BTL investors some advice please

    Hi,

    I only have one BTL property in London and not sure to invest in more!? I don’t want to buy any flats due to the service charges and I don’t think you gain much in capital growth when a property is a leasehold. 

    Would you still invest in London? Especially the house prices start from £550K on average?

    Should invest on shares may be? What are your thoughts in investing in or around London?

    Many Thanks
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    Hi Jack,

    The moderator has moved your thread into the London Property Tribe where there is a wealth of information on this topic.

    Have a look through this category.

    A recent thread for example:

    Seeking London hotspots ... ! 

    I am invested in London and currently have 100% occupancy across my portfolio of flats and have put the rent up on a couple recently.

    I agree you should perhaps seek a house in an up and coming area in zone 3 to 6, rather than a shiny new flat. Smile

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    It all depends on what sort of property you're looking for and where? North London has access to more tube lines, if that's important to you?

    Where is your current property? Would you manage the new one yourself, so may need to be closer to where you live?

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    Hi Adam, yes both North London and East London have become very popular and trendy. My BTL is in SW London and 20minutes away from me. So I can easily manage.
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    Up in the northern powerhouse is great value. As long as you have good management in place you will be looking at 6%+ net yields after all fees. 

    Some great spots and not so great. Get some advice from a local person.
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    I will have sold both my London properties by 8/11/19. I've been lucky in that I've owned them for 17 and 14 years and seen the value increase. And because they were not too highly geared, the yield has also been good. One was an apartment with a share of the Freehold and I was the Company Sec. We kept the service charge 'honest' for a long time, but the work became too much and we outsourced the management 3 years ago. The agent then started to increase the charges.

    I'm leaving London for York, and have several BTLs in Yorkshire. If I had not overpaid, the yield would have been better, but they manage to wash their faces!

    With s.24, hits to CGT reliefs and, God forbid, a Corbyn government, I struggle to see how a new entrant to the London market can make money unless you are starting with a lot of money.

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    Thank you Lou. Yes, I am sure you did really well with your London properties after such a long time. I hear Northern property investment is very good but can’t manage the properties out there. Best wishes with your move to beautiful York.
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    Depends how hands-on you want to be with the management.

    If you have a full-time job, you will find it hard, wherever the properties are. 

    I've had the Yorkshire apartments since 2009, and have a great agent who was a co-owner in one of the blocks. I now have more time but will leave them with her. 

    If you wanted to look in the area between Sheffield and Leeds, I'm sure she would handle them for you.
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    Hi Lou,

    Hope you don't mind me asking, but why did you overpay for you BTL's in Yorkshire?

    Did you receive bad advice?

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    I put my hands up. I committed the ultimate sin and was 'persuaded' to buy off-plan leasehold with the idea of building a better pension pot! It appeared the areas were ripe for expansion and there was demand, and the prices appeared reasonable (compared to London!). But I didn't do sufficient research, and like hundreds of other supposedly intelligent and successful people (accountants, barristers...) who were 'cash-rich, time-poor' and not property experts, I was conned by IAP and their tame solicitor; Powell Callen (both now conveniently defunct with no visible assets to recover!). The purchases were just before the recession, and the valuations have not recovered like London or other big cities, although I am now a little more optimistic about the Sheffield area. An expensive lesson... but I take a simple portfolio-wide view, and have done OK overall.

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    Thanks for your reply.

    Unfortunately the most intelligent people in the world fall foul sometimes.

    I admire the step you have taken to look as a whole and seem to be moving forward positively.

    The used market is a little easier to compare with history but I totally understand the lure of new build.

    once bitten twice shy.

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