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Hello from the Northeast!!


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Hi folks,

 

Thought i'd quickly introduce myself:  I'm Dave, i'm born and bred in Northumberland and now live in Newcastle upon Tyne.  I've been living here for the last 10 years after a brief spell at university in Leeds.  

 

I've been investing in property for the last 3 years; mainly flipping property, but have also renovated several HMOs which I now rent out.  This allowed me to quit my job to work full time in property.

 

I plan to carry on investing in Newcastle and the surrounding area, although I'd also be open to spreading my wings and looking elsewhere, particularly areas with good capital growth.  I sometimes think just owning a property in London is more profitable than me working tirelessly up North trying to earn a living!  I aim to keep adding to my BLT portfolio and improving my cashflow, but also to free up my time so I can flip more property.  I previously worked as an M&E contractor (plumbing, heating and electrics) so like getting my hands dirty, although it sometimes makes more sense to get others in to speed things up!

 

Would be great to get to know other investors from the area and build a network, especially anyone who can help finding great deals!

 

Thanks for reading

Dave

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Hi Dave

 

I'm a newbie to this forum too. I'm a Londoner but my other half is from County Durham. We are debating the London v the NE debate at the moment.

 

We are just starting to invest so don't have lot of spare capital although can get access to funds so the NE is calling us. The stamp duty hike is also making London less appealing.

 

Having said that my market knowledge (and investment history) in London is good whereas we'd be almost starting from scratch in the NE. If you've got a commercial mind set, it is easy to see the up and coming areas of London as the pace of gentrification. e.g. we've made over £250k on a £280k flat in Brixton bought at market value just pre-crash in 2008.

 

So strategy is likely to be try and find 1/2 BTLs in London hotspots in areas of anticipated capital appreciation but focusing on building a NE portfolio is some of the larger towns, possible Bishop Auckland to start, maybe Newcastle down the line. I'm interested in HMOs but have not experience here.

 

Which areas of Newcastle do you invest in? My only frame of reference is Jesmond which no doubt would have been a goldmine if you began investing 10 years ago!

 

As an aside, I am a real estate finance solicitor so not so good at the geeky stuff but not so good at getting my hands dirty!

 

Nicola

 

 

 

 

 

 

 

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Hi Nicola,

 

Many thanks for your response.

 

Yes i've been debating the London vs Northern cities for a while now.  I think the boom is certainly slowing in the London, and capital growth over the short term wont be anything like it has been recently.  However there will still be plenty of gems down there and a smart investment will still get a great return over the longterm.  Similarly to your strategy, i'm keen to invest in BTLs in London, could you advise on any areas you think could offer good growth over the next few years?

 

My BTL portfolio is based in the city centre and the suburbs of Newcastle.  There has been major construction of student accommodation in the city centre to foreign investment, but there is still plenty of demand from young professionals (who are my target market).

 

Outside the city centre, jesmond certainly experienced its own micro-boom but I think this has maxed out now.  It is still popular but expensive and quite rundown. Many students are looking elsewhere where rents arent so high. Fenham, Heaton, Sandyford (although this is going the same way as Jesmond). Gosforth will hold its value but are generally quite expensive.  Longbenton has also become popular. 

 

Fortunately the city has a high percentage of students so there is a fairly high demand in a lot of areas.

 

David

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Hi David

Thanks for this.

Re London it depends what you are looking for? Affordable areas are SE - lewisham, cattford and Woolwich will be benefiting from public transport improvements. Anywhere zone 3 out has the better investment potential.

London is a different beast though so it all depends on what your focus is!

Hope that helps

Nicola

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  • 2 years later...

Hi Amjed. I hope you're well.

 

I am looking for investment opportunities in Newcastle and it would be great to have a chat. My email address is najmulhoque0591@gmail.com

 

If you can drop my a line and we can take iy from there.

 

Naj

On 4/22/2016 at 10:07 PM, amjed khan said:

Hi David

 

Newcastle is a great place to invest. If you need deals in the NW then PM me.

 

Amjed

 

 

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  • 2 years later...

Hi David,

I appreciate it's been a few years since you originally posted your introduction, but I'm just wondering how you are getting on?

Having moved up to Newcastle I'm looking to get into the local market, starting off with refurbing and flipping. Are you still mixing your BTL & HMO strategy with some flipping? If so, are you still finding this profitable in and around Newcastle and coming across sufficient opportunities that meet your criteria?

I have much less hands on trade skills so I will be approaching it more as a project manager, but will get stuck in on the less skilled grunt work. I'm currently scouring rightmove and estate agents trying to pinpoint specific areas, are there any particular areas of Newcastle/North Tyneside you find to be more desirable for slipping projects, from a price and demand standpoint?

 

Hope it's still all going well for you, and I'm also hoping meet ups return in the not too distant future.

Thanks,

Matt

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Hi Matt,

Apologies for the delayed response, things are hectic at the minute!

Good to hear you're looking to get into property, its an interesting time for investors at the minute!  I'm still in the business, although over the last few years I left the buy/refurb/flip game to do some larger developments.  I still have a couple of HMOs just outside the city centre and in North Fenham, and some BTLs  dotted about, however I did sell several to free up some equity and invest down the country.  I've purchased in Mancheser, Liverpool, Leeds and Nottingham with a hope of getting a good capital growth return over the (fairly) short term.  

As for flipping properties I've done quite a few down at the coast with some success, albeit several years ago now.  The area was buzzing down there, however investors are aware of this so it's getting harder to find those bargains.  I'm planning on a few buy/refurb/remortgage projects later this year and the coast is somewhere i'll be looking, but i don't have a specific area.  If the deal is right i'll go for it if the rental demand in that area is there.

I do think the Newcastle market is potentially going to move in the right direction though (we're only just recovering from the crash in a few areas), but in the next several years I see it being quite a strong market.  For that reason i'll be investing here for a while rather than down the country.

Sorry I couldn't be more help, but good luck. I look forward to the meetings starting back up, I might see you there!

Cheers

Dave

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  • 1 month later...

Hi David,

Thank you for the response, it sounds like things are going well for you. Great to hear people starting out with one strategy and progressing on to more complex/large scale ones having had early success, that is something I'd love to achieve myself.

I agree that investors around Newcastle seem pretty hot on opportunities at the moment. I've targeted a few properties that have ended up selling for a fair amount more than what I was willing to pay, which has set me back a little time wise but on the other hand, is a sign of a strong market. I had mainly been looking at the city centre outskirts and suburbs, but I'll take on the advice and start looking a bit more in depth at the coastal towns.

After completing a couple of Flips I'd be looking to put some of the profits into City Centre BTLs, most likely in Liverpool, Manchester or Leeds, as like you say, the rental market and potential growth in the short term does seem stronger in the 'more southerly' northern cities. I'm also hoping to see the North East market start to see some strong growth in the medium term, like you say the region was hit badly by the financial crisis and is still recovering in many or the more rural areas, but Newcastle as a city has all the fundamentals you'd like, a good jobs market, two strong universities and a increasingly vibrant food and drink scene. 

Thanks for the update and the pieces of advice. All the best.

Matt

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