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I have some money that I need to invest and I am wondering whether typically a small portfolio of say three house local to me in the northwest would be better than one house in London.
I don't see how I could get the same rental return on a single property but it would probably develope more equity quicker if I bought something in or around London but that would make it much more difficult to maintain due to distance. Also if I took a hit on rental I could theoretically just buy as an investment and sell in 12-24 months in London. Additionally having three small propeties gives me a better spread.
Thats all assuming property is still a good medium to long term bet.
Houses are only worth what the market pays, you need to know that the money is not readily accessible.
If you are buying outright then you will pay tax on the rent less any fees, if you are getting a mortgage then you can claim the interest and fees against tax. Check out any capital gains issues too.
I would suggest speaking to an accountant/IFA about what will work for you. you also need to budget for repairs. maintenance, non rental & bad tennants.
Great, that's exactly the sort of investment the young families of the country need right now isn't it? BTL sheep buying up all the affordable properties. Can't you think of something more creative or positive to do with your cash?
why not build a house with the money? or invest in housing development?
potentially bigger returns.
IMHO the london market will continue to rise a little more than other cities. I have a property in the north west and my wife has one in london and she's continuing to do better than me. lol. the downside of london is that its a long way from you so you will probably need to pay a agent a mangement fee, so expect to loose 10-15% of the rental each month. The choice is up to you sir - cilla black style. Good luck.
Thanks Rebel yes I am sure in a perfect Utopian society that would work unfortunately this is the real world and I am trying to provide the best future for my family. I trust you as philanthropic as you would like the BTL sheep to be? Not sure any of your advice was helpful so not sure why you bothered ?
Hmm building a property potentially has higher risks and ties up cash in the event that a single property did not sell after completion. I have not thought about housing developement though. Also I do spend a fair bit of time in London in an average year, not a lot in 2013 or looking like much for 2014 at present.
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I wish Binners! Just looking at the best way to invest may not even be BTL.
Sit and wait, why buy (the most illiquid possible asset) at the peak of the market when the returns are so abysmal and there's a very high chance of the asset depreciating in the short term - because let's face it, the minute interest rates go up, shit hits the fan.
do you know something we don't grahamg?
Well it looks like interest rates could be pretty static for 12 to 18 months. Need to make a jump sometime as its pointless sat in a bank at the current rates of interest.