Buying to let - surrounding London areas

Ironic Namesake

Ironic Namesake

Ironic Namesake

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I know there was a similar topic recently but a bit of a different situation - OP was looking to buy properties with a couple of friends in areas of Stoke etc.

Anyway, as an investment I've been doing some research into buying some small properties - 1 bed flats, within commuting distance (ie. 30 mins or so train journey to London Bridge / similar stations) where prices are more affordable (£100-£140k) my aim is not necessarily to make a hefty profit on rental each year but to own some property in 20 years time when the mortgages are paid off to assist with buying a place for myself, or maybe to keep for retirement income.

I'm aware of the BTL mortgage rates/agency fees/possible issues with tenants/unpaid rent etc.

Is there anything else I should be considering? (Never bought a property before :o)
 
Also looking to do this when I return to the UK in a year.....

Looking at around 4/5 properties, two bedders near the tube lines, west London.

Read up on the tax side, ability to write of 10% to wear and tear, tax discount on mortgage interest, etc.
 
Vanilla said:
Also looking to do this when I return to the UK in a year.....

Looking at around 4/5 properties, two bedders near the tube lines, west London.

Read up on the tax side, ability to write of 10% to wear and tear, tax discount on mortgage interest, etc.
Click to expand...

I want to go a bit further out - West London is also quite expensive, especially for 4-5 of them :eek:
 
I have a letted property in west london and live abroad.
As has already been mentioned before you can write off 10% wear & tear, and register yourself as a non-resident landlord. you can also write off home improvements against tax.

Estate agents charge a fortune for management fees, think I'm paying 12% fully managed for not much, if you have a mate near by I'd see if you can bung him 50 quid per issue to look after the tenants....
 
Hamish said:
I have a letted property in west london and live abroad.
As has already been mentioned before you can write off 10% wear & tear, and register yourself as a non-resident landlord. you can also write off home improvements against tax.

Estate agents charge a fortune for management fees, think I'm paying 12% fully managed for not much, if you have a mate near by I'd see if you can bung him 50 quid per issue to look after the tenants....
Click to expand...

Yeah I spoke with a couple of estate agents - 12-13% seems to be the going rate for management fees , although apparently this includes insurance for non-paying tenants and any legal costs that you may occur if rent isn't paid and tenants need to be evicted.

I'm still quite unsure though - originally I was looking at flats further out but within commutable distance, these are anything up to around £120K or so, in this case I'd like maybe 2-3 of them. But I don't know these areas at all, and not sure if it's a wise idea if I'm abroad the whole time.

The other option I looked at is a single flat or possibly 2 in SW London in an area which I know well but is far more expensive (ie £220-250K for a 1 bed flat) but would still yield 5+% after management fees etc.

Also a bit concerned about interest rates increasing after 5+ years.

Lots of thinking / researching to do :o
 
Ironic Namesake said:
Yeah I spoke with a couple of estate agents - 12-13% seems to be the going rate for management fees , although apparently this includes insurance for non-paying tenants and any legal costs that you may occur if rent isn't paid and tenants need to be evicted.

I'm still quite unsure though - originally I was looking at flats further out but within commutable distance, these are anything up to around £120K or so, in this case I'd like maybe 2-3 of them. But I don't know these areas at all, and not sure if it's a wise idea if I'm abroad the whole time.

The other option I looked at is a single flat or possibly 2 in SW London in an area which I know well but is far more expensive (ie £220-250K for a 1 bed flat) but would still yield 5+% after management fees etc.

Also a bit concerned about interest rates increasing after 5+ years.

Lots of thinking / researching to do :o
Click to expand...

I guess there's quite a few variables to weigh up, more cheap properties is more hassle but may bring more money, but the cheap properties may bring cheap tenants which bring problems.

As for location if it were me i'd be looking at areas which will increase in price within the next few years. Up and coming areas like Dalston and Stratford.
Also have a look at places near new transport projects like the London Overground Extension and CrossRail as these shoot up in value once the stations open.
 
Battersea / Elephant and Castle / South of Clapham look for regeneration areas that are not just going to be swathes of flats or areas that have had large estates given the go ahead because this usually pushes the average price up in that area.

Problem with Stratford / Newham is that since the Olympics has left the community feel abandoned and with several thousand ex Olympic athlete homes being converted to social housing very quickly the area could very easily turn into another ghetto sink estate that in 20 years we'll be tearing down and replacing.
 
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