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

Dear Vladimir (or should that be здравствуйте?)

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Hi Vlad + wider public, fellow newbie here.

I have a portfolio of five properties, bought by selling a house in London two years ago and spreading the cash across a bigger and higher yielding portfolio in Colchester and Manchester.

I think that people look too much at recent price rises in certain regions when they should really be looking at the long term rental future. My attitude is not to try to anticipate future capital movements because none of us really know or can know which regions will go up or down. Build cashflow. The best way to do this is to invest where the yields are best.

I had bought three houses in Colchester before I decided to spread the risk and go north. I've now got two in Manchester and my only regret is not basing my entire portfolio up there. The yields are so much better.

I guess we all have our own models and this is mine.

Best wishes,

Mark

Reply to the comment left by "Mark Epps" at "17/03/2015 - 08:33":

Hi Mark

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Reply to the comment left by "Mark Epps" at "17/03/2015 - 08:33":

Hello Mark,

Thank you very much for your opinion. You made a good point about cash flow - I was leaning towards north and your experience is a great example of success with such move.

Thank you

Reply to the comment left by "Mark Alexander" at "16/03/2015 - 20:24":

Thank you Mark, I will take a look at these resources

Hi

Also consider Edinburgh, very lively market and values fairly static.

I would be happy to help you if you wanted to explore this further. I have bought quite a few repossessions and often see good deals but cannot save the deposit quick enough!! We currently have 10 BTL properties.

Hope this helps.

Paula

If you go north, avoid any areas that have few home owners - there are some very bad areas with good headline yields. (Until you get the 10th boiler stolen in that many years!)

I don't like flats, as the freeholder and management companies makes lots of charge you have no control over.

Hi vlad

It depends really whether you desire capital growth or income from your investment. You already probably know that it's more likely you will get better capital growth in London and higher income outside of London ie north.

So it depends on each persons individual circumstances there is no right or wrong answer. But my advice would always be location. If you buy in north there are places that will always sell well ie be careful of buying in more run down areas where it can be difficult if you ever need to sell.

Yet these areas are what some people look for especially with tenants on housing benefits. There is a market for everyone just knows your and research it well.

Good luck

Good morning,

London I would say was the no brainer place to invest several years ago. Given that prices are now the highest they have ever been it is nearing what some analysts fear may be a mini bubble. I would only buy in London with a long term view if I was living there, not for investment purposes.

When you mention that many areas in the North have not grown well you are referring to the national or regional averages and so buying well can ensure that the growth / equity performs well.

The average growth may be lower outside of London however for the last few years in London it has been impossible to buy a good deal. This means you are 100% at the mercy of the housing market which Is risky.

I target blocks and streets where I know I can buy distressed properties from vendors that need to sell quickly. This means that although the average growth may be slower that I am not reliant on this. I have made 10% capital gains per annum plus in addition to great yields simply by buying well and adding value.

I have recently left my property investment job and have set up by myself doing this full time. I am now finding more investments than I can handle so I have started introducing fellow investors to them.

Dan Sawyer

Dan, I would not recommend anyone from London to try what you do unless the move into the area they are targeting.

Middle class house in the north, on middle class roads are a lot safer bet for someone that does not know the area like the back of their hand.