Next best place to invest ?

by Readers Question

10:37 AM, 22nd May 2014
About 5 years ago

Next best place to invest ?

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Next best place to invest ?

Where would you invest next for capital growth?

If you had 200K to invest would you buy 2 houses up north outright or 1 house down south outright
or leverage the money and buy more ?

Bearing in mind buying a home outright is just a cash cow with no aggravation (apart from tenants).

Many thanks

Steve Map



Comments

Some One

12:17 PM, 22nd May 2014
About 5 years ago

I would only buy in places I know, essentially that would mean I'd buy three at 125k put 50k deposits down for each one (to get 60% LTV mortgage rates) leaving myself with a buffer of a little over £40k after purchase costs.

(Hmm, I've ignored your request for capital growth - if that's your sole raison d'etre, then I guess you'd do best to mortgage to the hilt and then hope for the best)

Jonathan Clarke

12:58 PM, 22nd May 2014
About 5 years ago

Milton Keynes - worth a punt

Positives

40 mins up the road from London
But at affordable prices and better yields
Room to grow and expand
Geographically centre of the country
Good transport links
Modern outlook
Forward Thinking City
Knock on effects from London yet to kick in
Big firms relocating HQ operations here all the time
Tenant demand very high
Lots of investment estates with different profiles

Negatives

No beach

Oh and buy cash if you want to be just plain rich
Leverage though if you want to be richer.
High Leverage. High Yield I find is the best model

Neil Patterson

13:05 PM, 22nd May 2014
About 5 years ago

The vast majority of people do buy in their area as local knowledge is invaluable, but that does not mean you can't find a great investment further away if the yields in your part of the country are poor.

At the end of the day you can get some great advice but you will normally only do what you feel is within your comfort zone and risk profile.

Borrowing is often perceived as a risk, but do not forget you can always pay it back if you have the cash. It is safer to own an asset with a positive cash flow and a large surplus of rainy day money than a high cash flow and no savings, because the cashflow can stop at any time.

Robert Desbruslais

14:21 PM, 22nd May 2014
About 5 years ago

Brighton and Hove is a good punt. Has the London effect but less bubbly.

Mandy Thomson

10:37 AM, 23rd May 2014
About 5 years ago

Greater London - at least 5% yield (not counting conveyancing fees), and increase in capital value between 20 - 25% over past year. Flats can still be bought in certain areas from as little as £120,000 (for a studio). Moreover, the close proximity to London means a plentiful supply of young professionals - who make excellent tenants. However, my friend, who was trying to let a terraced 2 bed house, not a flat, found it much harder to get tenants, as this type of tenant naturally don't want to pay any more rent than they need to while still being within close proximity to town.


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