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John, a newbie in SE London who is ready to go


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Hi All,

 

Got here through the property geek podcasts. Been reading the forums for the last few weeks now, which has been a great form of motivation for me. Thanks everyone.

 

I am John and I am a newbie investor. I have a one bed property in Streatham, London, that is a BTL. Came about accidentally, but been going well for the last few years. I have earmarked 2014 as the year I get my first ‘proper’ investment and I am keen to learn from this great community of people.

 

My aim is to buy at least one BTL property per year for the next 10 years. I have just remortgaged to release the funds for the next purchase. I know that the main hurdle I have to overcome now is taking action. 

 

BTL investment is the path I have decided on with a focus on SE London (Catford, Grove Park etc.)

Would appreciate any recommendations for good mortgage brokers and would love to hear from any investors focussed on the South London area.

 

Thanks,
John

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Welcome John! You're right that taking action is the main hurdle, but it sounds like you're mentally well on your way. I like the "one per year" plan: it's easy enough not to be too daunting, but will still compound to make a huge difference to your life in 10 years.

 

South of the river is another world to me, but I'm sure others will be able to help you with some local knowledge :)

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John

Good luck! This sounds great. I've rented out a flat in Beckenham now for almost 6 years which I don't think is very far at all from Catford. In that time I think I've had one week void. Maybe I've been lucky but I think it's a great town with good fundamentals and therefore a lot to lend it to BTL. I lived there myself for 7 years so can talk about it with some knowledge. It has good schools (so good for families) and quick access to London (so good for professionals). It also has a bit of a villagey feel (parks, greenery, golf courses etc). You can pick up a 2 bed flat there for well under £300k. Might be worth a look? I can put you in touch with some agents I've known there for years who are competitively priced.

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I've used Curran and Pinner over the past 6 years and have been pleased with them. There are more than 20 agents in Beckenham so lots of competition etc. Daniel Curran set the business up about 7 years ago with branches in Beckenham and Bromley. He is about to open up another in Hayes. You could give him a call and take it from there.

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Hi Andrew, just spoken to them. Very refreshing - seem like switched on guys with some realism - just spent 25 minutes talking about the market and rentals properties. They were asking for you surname, would you mind divulging this information as they were keen to know where the recommendation came from. If you'd like to do it privately, my email is j_annoh@hotmail.com.

Thanks,

John

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Hi John,

 

A fellow newbie to the Hub and such a great name I thought I must send him a reply!

 

SE London seems to be a great place in which to invest, certainly has had a good few years of solid growth in recent times so good luck with it all.

 

How do the yields stack up across the region that you are focusing on? It seems harder and harder to source BMV deals across London as a whole from my own experiences, possibly offset by the capital growth in recent times. Do you think the London boom will continue on for some time to come?

Click below to find out more about my work at RMP Property

RMP-500-John.jpg

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Hi John,

 

Good to hear from you. I think that SE London is a good place. Depending on where you are looking at, still seen as 'affordable'. The particular areas I am looking at (Catford/Grove Park) are now benefiting from overspill from areas like Forest Hill, Brockley. Catford will be getting local government investment over the next few years so could be interesting.Yields will be generally lower in London but you are right that capital growth is good. My view is that BMV in many parts of the capital is just not there (a completely run down house near to where I live has just gone for 10k above asking price. it needs ALOT of work). I think it is more about finding value, where the sums stack up. Now onto the million pound question - will the London boom continue  for some time. I'll be honest, I really don't know. I think there will eventually be a levelling out. Currently I think the market is hot, but I see it going up another notch before levelling out but as to when that will be...

 

Would welcome other views on the above.

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  • 7 months later...

Hi Alan,

 

Good to hear from you. It has been a great journey but please to say that I have finally had an offer accepted on a 2 bedroom property near Beckenham Hill. I had missed out on one property at auction and another on the open market.

 

Currently going through the conveyancing process at the mo. Figures seem to work well and yielding just over 6%. It'd be great to catch up with a fellow SE Londoner, although may have to postpone into the new year as my wife is expecting in a week. How are you getting on? Have you isolated an area. Have you looked at anything interesting? Would be great to hear how you are getting on. 

 

Thanks,

John

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Hi John,

 

Congratulations and best of luck to you and your wife! And of course good luck with your 2 bed deal. 

 

I'm looking for deals, aiming for yield primarily. I've posted some figures on my introduction on a deal I'm looking at in the South West. 

 

Guess what, I'm not finding it easy to spot those deals with good returns. I'd be open to investing SE London too, but again hard to find those deals. Is that 6% yield Net or Gross?

 

Best,

Alan

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Hey John. I actually live in the grove park area and I'm a newbie property investor also.

I'm starting to look at good deals in the area that I can get under contract and assign. It's great that your doing the BTL strategy I hope to get to that stage myself by the middle of next year. It would be great if we could get in touch and talk about the market around this area. I'm currently the only person in my knowing of people that is into property and it would be cool if I had someone to speak to and geek out with lol

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Hey Alan,

 

The gross yield is 6.1% which currently is giving me 5.5% net yield which I am happy about. The figures are based on conservative estimate of £1000 rental per month. Currently direct comparables are achieving between £1,100 and £1,150. Fingers crossed though that all runs smoothly.

 

Anthony, great to hear from you. It would be good to meet up as you are pretty much down the road from me. Definitely up for a beer sometime. I am very much a beginner and would be good to have someone nearby to discuss property with. Realistically it may have to be in the new year as my wife is due any moment now. Let's keep in touch and arrange something.

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Hey John,

 

Glad to hear you have had an offer accepted on a place. All the best with the new arrival. We should catch up again some time in the new year when things are a bit more settled with your new addition. I am almost in the position to start looking for another investment, I am considering around grove park again but stretching the search over most of south east London. I am also looking to do an investment through RMP so hopefully will add 2 new properties to the existing one in 2015. 

 

Anthony - My first/only buy to let is near grove park, in Robins Court on Chinbrook Road. The area seems to offer some better yield opportunities than other areas, although prices rose a lot last year so is getting harder to find a bargain. If you fancy catching up for a beer some time I can share what little knowledge I have! 

 

Jason

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Hey John.

Yeah that would be great! Congratulations with your new born. When everything is settled give me an email at

Dragonanf@gmail.com

Jason - I know exactly where those properties are I walk past them everyday. We should defiantly catch a beer and chat sometime. I'm awear that the prices have gone up but I know there are still bargains out there it's just about fishing them out. Drop me an email and we can arrange something.

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