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Hello all


I hope you are all well.


I have a dilemma and not a bad one I guess.


I have a three bed flat in South London which I rent out. It makes a decent yield but not as good as my properties in Birmingham.


My dilemma is, do I keep my south London flat and wait for the next boom or continue to rent out. Or sell now and buy two properties in Birmingham which will more than double my income compared to the south London one.


The thing is, the London property will always rent well and have good captial growth but I feel Birimingham is also.


Any advice on this would be fantastic and greatly appreciated.


Many thanks in advance.



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I think it all depends on your goals over the short term. Are you looking to escape the rat race, therefor needing to build yield quickly? Or are you building a big pension pot for use down the line? 


I personally feel birmingham will experience extended growth in the coming years and am looking to find decent areas there now.



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I think Birmingham will grow considerably. I have a number of goals to achieve and have a set number of milestones to get there.


This move would allow me to buy three more properties in Birmingham and become closer to financial dependency. I guess it was my first flat and in London, so separating my heart and mind here is crucial from a business point of view.


Thanks David for the reminder on keeping on top of the goals that I set out.


Have you started buying in Birmingham yet? 



I have one there at the moment and the net yield is amazing.





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Hi Lee


Like David said, it depends on what your objectives are. That will help drive your strategy. 


Have you spoken to a broker? You haven't mentioned how the London flat is financed, but can you mortgage/remortgage it to pull funds out for a deposit in Birmingham?


Personally, I prefer to hold property especially if they're performing well and has solid fundamentals. If you sell it, have you taken into account the associated selling costs and tax?


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Hi Derek


Thanks for your reply.


I agree when it comes to buy and hold but sometimes you have to sell to achieve the strategy you set out. Although the London property does well, I could have two in Birmingham doing better and have control over capital  growth rather than wait on it. 


The London property is mortgaged but i've had it for ten years. Ive leveraged off it once but tend not to leverage twice. 


The cost of selling and taxes are my concern but shouldn't hinder the bigger picture. Although would need to research this as i've never sold before. 

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