Scott Jay’s Buy to Let Hotspots for 2016
We have been extremely busy over the last few months, property prices over the last few years have been soaring due to the lack of stock and rise in demand, this always makes the spring and summer months hectic with long hours being worked by myself and my staff, so I probably haven’t been blogging as much as I should be.
But one question that my Landlords and future Landlords always put to me is, where is the best place for my next buy to let investment?
So I am going to give you my personal opinion on where you should be looking, if you disagree with me, then that is fine, I urge you to challenge me on it and ask me questions – maybe we can work together?
In my opinion Dagenham is set for a huge amount of growth over the next 10-15 years! Prices have increased, but are still hugely affordable with a 3 Bedroom House setting you back between £250,000 – £300,000. Rental returns are on a par with Hainault and Debden with your standard 3 Bedrooms House giving you £1250 PCM. 6% Yield or close to it for a Freehold House is still a much better investment than sticking your money in your savings account, or what I like to call my HSBC Investment account.
The majority of tenants want easy access into the city of London in these areas so you want to buy within 0.6 miles (recommended) to a station to make your investment easily rented out. Dagenham East and Becontree Stations are on the District Line so you have easy access into London.
In my opinion this is one of the last areas that is set to soar with homes across London and the outskirts with access into London already soaring in price.
We manage quite a few properties in Chadwell Heath and like Dagenham will have easy access into London with the Cross Rail coming into effect in 2019, this will enable commuters to reach Tottenham Court Road Station from Chadwell Heath Station within 28 minutes. That alone should give you an indication of where the market will go in this area within the next 10 years. Again, still affordable but a bit more expensive than Dagenham, you can still get some great buys there. The 80’s Builds in Millhaven Close, Capstan Close and Crucible Close, RM6 are always good buys because they still have roughly 100 years remaining on their leases and you can pick up a 2 Bedroom Flat for around £200,000 with your rental Return being £1000 or more PCM, that alone giving an investor a 6% Yield. Again we manage quite a few in these locations so know exactly what the rental market is doing there.
Hainault, as well as Debden in Loughton are famous for the BISF (British Industrial Steel Frame) Builds that they built to house the East Londoners whose houses got bombed through the Blitz in the War. You can pick these style of houses up a lot cheaper than the Brick Built houses because of their non-standard construction and lending is a lot harder to obtain, but don’t be discouraged because they are built very well, much more robust than a lot of the newer builds you see being built nowadays. These fetch the same rental amounts as the brick built houses enabling you to achieve a much higher yield because of the lower purchase prices. A downside of these is the exit strategy because they may take you a little bit longer to sell on due to the lending criteria for a prospective purchaser.
But Hainault I think is going through a bit of a transformation with a lot of developers building in the area such as Taylor Wimpey and Fairview Homes, plus there will be a Tesco Express in New North Road. It is a popular area for tenants and Hainault Central Line Station has benefitted from running a 24 hour service on Fridays and Saturdays.
Again if you need any information about your buy to let investments on where to buy or a rent review then the staff at Keystones Property are very knowledgeable about the local area and what is going on.
Give us a call on 0203 697 7788 or email us at [email protected]
Director at Keystones Property
Suite 1, Forest House
186 Forest Road