Glasgow/Leeds/Manchester or save for a year to buy in London?

by Readers Question

20:20 PM, 16th March 2015
About 4 years ago

Glasgow/Leeds/Manchester or save for a year to buy in London?

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Glasgow/Leeds/Manchester or save for a year to buy in London?

I would like to invest some savings that I’ve got into a property through buy to let (min 25% LTV). Unfortunately my savings are not big enough to purchase even a small property in London for now. So I have a choice: Glasgow Leeds Manchester or save for a year to buy in London

– save for another year and hopefully get small property in London
– purchase a new build (off-plan) property in Glasgow/Leeds/Manchester

I’ve done some research and looks like yields in Glasgow/Manchester/Leeds are higher than I can get in London (approx 7-8% in those cities against 5% in London). But the problem is that property prices in those cities have mainly fallen in recent 5 years but in London they went in the opposite direction. So yield-wise those cities are more attractive but in long-term perspective London hypothetically wins (as you can make money on selling rather than on rent).

So, bottom line, I’m a bit lost and would kindly ask for local community advise on this.

Thank you

Vlad



Comments

Dan Sawyer Cherry Picked Properties

21:09 PM, 18th March 2015
About 4 years ago

Reply to the comment left by "Vlad Eremenko" at "17/03/2015 - 23:29":

Hi Vlad,

On average people in the industry say that you should account for 25-30% less than the 12 months rent after all charges. With new build or apartments you tend to have to pay service charges and ground rent however this is normally offset when buying well by almost zero void periods (maybe a week).

With houses you don't have these expenses however repairs and voids tend to be higher as they are older properties in areas where you can expect a month void period.

Agent fees can be as little as 5% however you'll get what you pay for so I wouldn't use a company that low. 12% I'd say is high is high and 10% is a standard rate.
My main cities are Manchester and Liverpool which you could maybe consider as Glasgow would be similar to investing in France for you in terms of distance!

You're more than welcome to contact me. I'm not sure if there's a way of me giving you my details without attracting spam by putting my email or phone number on here?

Mark?

Mark Alexander

21:16 PM, 18th March 2015
About 4 years ago

Reply to the comment left by "Dan Sawyer Cherry Picked Properties" at "18/03/2015 - 21:09":

Hi Dan

The linked page below should answer all of your questions, we would be delighted if you were to decide to give business membership a try, and I think that given time you will too, especially as your advice and presence here becomes more and more established.

Please see http://www.property118.com/house-rules-business-sponsorship/
.

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