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I thought I would give an illustration of true figures and the growth rates of property I purchased in 2007 to date.I purchased this little batch between 2007 and 2015 up until the time of the Osborne changes, when I stopped buying Investment property.My conclusion from my figures is that, even if Osborne had not changed the rule, I don't think I would have purchased again anyway as the yields today and the prices paid today just don't give me the cash flow I need3 Bed House - Purchase price 2007 £60000 - value today £1200003 Bed House - Purchased price 2008 £75000 - value today £1250002 bed flat - purchased price 2007 £49000 - Value today £750003 Bed Flat - Purchased price 2008 £55000 - value today £80000The figures are not staggering but for a total investment £239000 the value today is £400000This is just a sample of my own record in the NEJust out of interest the Rental income from the above is £26280 per yearSo you can make money in the NE If you know what to buy and run as a businessFrom what I can see in my market, flats are growing slowly but houses are growing wellRents are steady - no growth at presentI am happy to plod along with good yields, but I am not intending to buy at this point of time more BTL property.
Learn Change and Adapt ?????
All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.
Where abouts in the NE are these DL? I have property in Heaton which has seen very little growth since the crash.
I know HEATON well but it’s not my patch I am in walkerville and Walkergate and parts of walker
property I bought between 2000 and 2007 has been a poor investment in real terms and are still below the prices they were before the crash flats at the height were 90k now are around 75k so yet to recover
property I have shown today are post 2007 which I purchased cheap after the crash they have done well but I changed statergy and moved from flats to 3 bed houses
I won’t buy flats now learned a lesson
flats are still performing badly but the yields are holding up so I just keep hold of what I have and watch the market
You have done well, buying when prices were depressed due to the financial crisis around that time. Now with good capital returns you should lock in some gains as these will erode very quickly over the coming months. Those areas outperforming usually get hit badly on the down side.
It’s an interesting thing the three bed houses before the crash were 145k
so they haven’t yet recovered from the crash
i won’t buy at today’s prices just treading water to see what happens my guess is FTB are holding up prices in N E I don’t think landlords are buying
I suppose it very much depends upon the location as you would have thought 3 beds would have done better. Maybe first time buyers were looking at the cheaper flats in relation to house prices at the time.
My guess is why buy a flat for 75k when you can have a house for 125k
its all horses for courses
your right every area is it’s own market
but when we have the crash the SE and London will feel a lot of pain
and it will take a long time to recover this time
th North dosent have a affordability issue and it FTB which will hold prices in the north but it may stutter or stagnate too
Thank you for sharing that, great to see your successes in investment. You are right, flats are slowly growing in the market as they are becoming more popular and convenient for modern day life.
In London massive amount of flats are going up. As house prices are far beyond first time buyers they are buying flats. However with these flats come all the extras as portage, fitness centers, landscape gardens- all which has to be paid for ie service charges which many will realize how expensive these are in due course. Also with so many flats around the old conversions are going to have to compete with the new modern flats. So i expect to see conversions come down in price more and be difficult to sell over the coming years.
Some really good points there.
I think it all comes down to the buyer, as tastes are different in terms of wanting to be in a new build flat or a more mature converted house. Also Service charges do not apply to all flats but this is a valid point.