X

Sign Up

or

By signing up I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google

or


By signing up, I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Log In

or


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.


Already a PT member? Log In

Don't have an account? Sign Up

  • New Members

    Newbie in London

    Hi All,

    Another newbie to the forum and should have probably posted here first.

    I'm currently looking to build a portfolio over the next couple of years producing good yields. I currently have finance in place however as I am in London I am substantially priced out the market unless I stump up a bigger deposit, which isnt viable at this point in time.

    Do people have any strategies for this? HMOs maybe? Which begs the question, do I buy established vs setting up my own? Also as mentioned in my other thread bulk buys from developers. Who and in what areas would it be viable to do this? London is in a world of its own where things are still selling!!

    In London being in a bubble we don't seem to have void periods and issues with tenants as their is always someone willing to live in the flat/house however outside of London what is this like? Do people have 1/2 months on average down time?

    Finally management. If I was to buy out of London I would need a good management team, as I work 10 hours a day 6 days a week self management isn't an option, is there a PT list of accredited property managers? I've heard terrible stories of Letting agents charging for work that never occurred etc.

    All advice of course is greatly appreciated and I look forward to exploring the forums some more.

    Thanks!

    George

    0
    0

    Why don't you use an operation like Northwood who will deal with EVERYTHING and pay you rent whether they can source a tenant or not

    Yes you'll pay about 14% fees, but they will leave you Alone to work your 10 hour days etc. whilst they look after your portfolio

    They have a good reputation and are sponsors on this site.

    You could sleep easy knowing they are carrying the can for your properties.

    You just have to ask yourself whether it is worth 14% of your gross rent

    It seems that is a price you would be willing to pay for total management including rent, voids or not.

    0
    0

    Hi George,

    I have answered your questions below:

    I'm currently looking to build a portfolio over the next couple of years producing good yields. I currently have finance in place however as I am in London I am substantially priced out the market unless I stump up a bigger deposit, which isnt viable at this point in time.

    I recommend looking in up and coming areas of London like Dulwich, Leyton, Peckham etc. and/or the one hour commuter belt around London where prices are significantly cheaper.

    See - How to ... Buy to Let (BTL) in London.

    Spotlight: London investment property market 

    What are the limits of London's commuter belt? 

    Five future commuter hot-spots

    Do people have any strategies for this? HMOs maybe?

    You need landlord experience to get HMO financing, and they are much higher risk due to the higher reward.  It is mostly full-time landlords who are involved in HMOs.  Not for you at this stage imho.  Keep it simple with single occupancy BTL until you have cut your teeth.

    Which begs the question, do I buy established vs setting up my own? Also as mentioned in my other thread bulk buys from developers. Who and in what areas would it be viable to do this? London is in a world of its own where things are still selling!!

    Developers are there to sell properties and meet targets.  All of them are open to deals.  As mentioned, look in the commuter belt and M3/M4 corridor.  

    You could also look at tenanted properties - see today's video:

    Low risk strategy to get started in BTL

    In London being in a bubble we don't seem to have void periods and issues with tenants as their is always someone willing to live in the flat/house however outside of London what is this like? Do people have 1/2 months on average down time?

    A void is a risk in any town or city.  I have had a void recently in North London.  You should factor this risk into every property evaluation.  Find areas of high tenant demand to minimise the risk.

    Finally management. If I was to buy out of London I would need a good management team, as I work 10 hours a day 6 days a week self management isn't an option, is there a PT list of accredited property managers? I've heard terrible stories of Letting agents charging for work that never occurred etc.

    You need to work with a reputable lettings agent to fully manage your properties.  Northwood, our lettings partner, meets all the criteria set out in How to vet a lettings agent ... 12 questions to ask .  They also have a market-leading guaranteed rent product which would be ideal for your situation.





    Hope that helps for now?

    0
    0

    Hello George.  I can't help you in London but I can help if you're considering the North West, or more specifically Manchester.

    I'm an ARLA licenced letting agent so you can be rest assured that I'm nothing like the rouge agents that make the headlines.  I also charge 5% management fee's as I specialise in helping portfolio Landlords and I understand that hefty management fees eat into precious yields.  I don't offer rent guarantee personally (like Northwood) but I can certainly put policies in place.

    Finally, I can help source properties that fit your needs, and talk you through what's good/bad/ugly and most importantly - profitable.

    So f you look further afield than London and end up setting your sights on Manchester, then please do get in touch.

    Helen

    0
    0

    Hello George,

    Welcome to the world of property investing.  It is a very exciting world, with many talented people with good ideas on how to make money.

    If you want high yields, then outside of London is probably a better place to look.  But if you are working 60 hours a week as you say, maybe your current cash flow is sufficient for now, and you want a longer term gain.  London property values are very stable over a medium to long term.  The growth over the last 2 decades has been amazing.  As a landlord myself, I can confirm that the yields on my properties in the north of England are outstanding, but their capital growth is very poor.  My London and South of England properties, are the complete opposite.

    Vanessa has accurately answered some of your specific questions.

    There are Northwood offices around the country.  I suggest you consider your budget and find areas within your budget, and contact the local Northwood office.  Most will have investment properties with tenants in place, so you have guaranteed income from the day of completion.  There are some listed here:

    https://www.northwooduk.com/properties/sa...g-investor

    If you have any questions, feel free to contact my office any time.

    Regards,

    Stuart Williams

    0
    0

    Stuart Williams| Director| Northwood 

     

    20 Upland Road, London, SE22 9EF
    t: 02082999999 | http://www.northwooduk.com/branches/dulw...ate-agents| Facebook | Twitter

     

    Earn £100 extra cash!

    We operate a landlord referral scheme and will pay £100 for every successful landlord or property developer that generates new business for our office.

    Please send details of your proposed landlord including their name, contact telephone number and proposed rental property address, along with your own contact information.

    Thank you all for your warm welcome and replies, there is definitely some food for thought and some reading to do. I'll fully define a strategy that suits me and will be beginning my search next month (fingers crossed Smile )

    Thanks again for all your support!

    Best,

    George

    0
    0