House Buying

Discussion in 'Finance, Property, Law' started by Yes_Sir!, Feb 19, 2006.

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  1. Fellow Arrsers,

    I am looking at buying a house in good old blighty. I have no intention of returning to the UK when I leave the forces, and was looking at the buy to let option.

    My question is this; In your valued opinion where in the UK do you think is the best place to buy a house and get a good return in say 5 years??

  2. Your time scale suggest that East London, within striking distance of the 2012 Olympic site at Stratford, would be a good bet.

    I bought my flat from Collins who were fine. I've heard that AJ Scotts are good too. - 15k
  3. Buy in either Scotland or the North East. Both are steadily rising.
  4. It's all about economy of scale.

    You can buy a big property in the North/ Northeast/ Scotland or a smaller one on the Southeast/ London.

    Seeing as you aren't going to be living in it, the only important questions are:

    1. How much rent am I getting versus my mortgage repayments?

    2. How much return am I going to get on the value of the property in "X" years time?

    Both are massive questions, basically because property values work (roughly) in seven year cycles and because today's up-and-coming area is tomorrows came-and-went area.

    Personally, I don't think you can go wrong with the old adage of "buy the worst house on the best street, not the best house on the worst street."

    If you are going for executive/ professional lets you need to spend a shed-load on interiors. You also have to be in the right area. My advice is to aim at an area with a large NHS trust/ university etc, avoid the student market and let to junior doctors/ nurses/ teachers/ lecturers (etc). A friend who owns two buy-to-let properties swears by this tactic (in the Home Counties) and has made a few quid; something to think about.

    Having said that, another friend makes a good profit simply letting his four-bedroom house (bought for very little) in Florida to families visiting Disney.

    Good luck,

  5. I looked into this about 18 months ago as a way of getting out of my existing house (sale fell though twice) and the sums did not do it for me. The amount I would have got in rental did not cover the expenses. Best of luck with your plans, I would strongly advise you to be upfront with the mortage lender and insurance company, they have different (i.e. higher) rates for the rental customer and you are obliged to tell them this.
  6. I've been doing a lot of research on just this subject. It's only a predictor but I've found this site quite useful:

    Examples; For Middle wallop area it predicts a -1% decrease over next 5 years
    For Harrogate it predicts an 8% increase
    For Blackpool 3.3% increase

    Of course it can't be exact but it's helpful.
  7. The question you need to ask is also whether you can get a relaible supply of tennants for the property.

    i would suggest you look for a medium sized city with an expanding university.
  8. Perhaps that'll be because of all those annoying t**ts low flying around the place under the dellusion that they really are Tom Cruise? :D :D :D
  9. Or maybe cos its actually a gash place to live!

    Any other ideas/suggestions??