BTL in London

[MarillionFan]

Been years since I worked in London but with a view to
Do a little contracting up there next year I am toting with buying a small two bedded flat.

Price limit of 400k, where would be the best place to get a 2 bed place that would rent out or take a tenant? Oh what should the rent be?

[scooterscot]

I've got 2 house in the UK, I live in neither.

Should I sell one of them or both?

Was thinking we've registered ourselves out here in Germany with all our belongings and yet we're still serving tenants back home. Should we sell or keep letting?

[d000hg]

What should the rent be?

I heard a figure of 4% return but that seems kind of risky with interest rates this low.

If you had a 3% mortgage that means you need to be letting with an income of 7% then, £28k pa => £2333pcm.

Is that right as far as defining 'return'?

[AtW]

Price limit of 400k

In London this will only be enough to buy a dog house and you'll have to live next door to sasguru in Winksworth.

You'll also have to face stiff competition from likes of DimPrawn trying to escape grim north.

HTH

[MarillionFan]

Everything I'm reading is that London and only London is holding
It's prices and is set to rise. It's also easy to rent, but yield is not great.

So if London will hold value or a slight increase may be worth it. Everything else I read says avoid property!

[d000hg]

Interest rates would make me very nervous unless of course buying with a small or zero mortgage. If they jump up to 5% you could find yourself with a property you can't sell and can't cover the costs for.

The problem as I see it is loads of properties were bought before the prices boomed, on mortgages which are now at 1.5%. You can't compete since you have to pay more and can't get such a low mortgage rate.

[scooterscot]

Wait until an IRA kaboom, people will flee prices will drop.

[scooterscot]

The problem as I see it is loads of properties were bought before the prices boomed, on mortgages which are now at 1.5%. You can't compete since you have to pay more and can't get such a low mortgage rate.

Cough, don't want to brag but I'm going to, my 1st let house is 0.49% above base

[shaunbhoy]

Everything I'm reading is that London and only London is holding
It's prices and is set to rise. It's also easy to rent, but yield is not great.

So if London will hold value or a slight increase may be worth it. Everything else I read says avoid property!

A major factor in London prices holding might be down to the Olympics next year. I'd hang fire if I were you. You don't want to end up like sasguru, living out in your eco-shed winking to keep warm because you can't afford to heat the main gaff!!

[MarillionFan]

Interest rates would make me very nervous unless of course buying with a small or zero mortgage. If they jump up to 5% you could find yourself with a property you can't sell and can't cover the costs for.

The problem as I see it is loads of properties were bought before the prices boomed, on mortgages which are now at 1.5%. You can't compete since you have to pay more and can't get such a low mortgage rate.

It would be no mortgage, so it's a pure return basis.

Does 400k buy anything in a decent place though in London?