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Invest in the North (BTL) or buy owner occupier in London?

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Hi All,


I've been listening to alot of talk about the prospects of good capital growth in certain areas of the north, whereas London is stalling. I'm in a predicament in that I can only afford to invest in a BTL up North OR possibly a Help to Buy scheme in London, meaning I'd live in the property (hopefully buy a 2 bed & rent the 2nd room to help with repayments) but being tied to the property for a certain amount of years thereafter, but I'm not sure which would be the best option from a capital growth point of view & with a view of pulling equity from the property and buying again within a year to 18 months?

It'd be very helpful if anyone had any views on the best strategy to effectively & efficiently buy right the first time to best enable me to buy for a 2nd time in the not too distant future as a result of the 1st buy? I'm sure there are plenty of people in the same boat, I'd love to hear your views.





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Do you want to live in London? If so buy there. It'll grow, just not at the moment. But due to the prices in London, a 5% growth will probably be the same as a 10% growth further north. As you'll be needing to live in London, you risk being priced out, unless you're thinking of buying several properties in the north and using the rent received to pay to rent in London. You can still then look to buy in the north at a later date if you want an investment property, it may just mean that you're not in the prime areas. Doesn't really matter, as you'll still get the rent etc, but being priced out of where you want to live in London may mean longer commutes every day, not being near friends etc 

Add in help to buy and less SDLT on the 1st purchase (although some ways around it if you buy a rental first) and feels like buying your own is the right approach for now. 

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Hi Keith,

Well done on thinking ahead and having a plan in place. Also, congratulations on taking the first steps into your first BTL.

What is the best option for you? 

Would you like to have a property in London? 

Do you know which areas in the North you would like to invest in? Do you know the areas well? 

Take in to consideration how you want to manage the property.  

It’s all down to what will be best for you in the long run, I believe any property is a good investment.

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@dino v 

Thanks for your advice. I do want to live in London, at least for another couple of years before moving to another European city for a short stint with the intention of returning to the property I will hopefully own before I leave. I guess my reservations are about the Government Help to Buy Equity loan scheme and weather it will limit my progress to pull equity from the property in the future, am I right in saying that the government also claim 40% of the capital growth? 
I'm also worried about 'missing the boat' in the north as 2019/2020 seems to be a great time to buy in the North for future capital growth prospects (granted the same could be said about London), I just think its likely more profitable to have a BTL rather than a owner occupied property, but I could be wrong. I don't yet know the laws in place for renting a 2nd room in an owner occupied property? Can I move out after 6 months and rent the whole property (say 2 bed flat)?





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