Sunday Times tips Brockley buy-to-let market

'Back in the 1980's I was the toast of Wall Street. But then, I was diagnosed with terminal boneitis. There was no cure at the time. One drug company was close but I arranged a hostile takeover and sold off all the assets. Made a cool hundred mil. Naturally I froze myself until a cure was found. Now here I am, ready to sleaze my way back to the top, 80's style!'
- That Guy, Futurama

Property boosterism is back, baby. And Brockley is riding that wave. Riding it to the max.

The Sunday Times has called the bottom of the market and says it's time to dive back in, with Brockley among the hotest prospects:

Choosing the right area can be almost as important as choosing the right property. Planned improvements in transport links and other infrastructure can be beneficial. In the capital, the extension of the East London line, the first part of which will start operating next year, should help areas that lie along its route.

And they've found this guy who's snapped up a Brockley property:

David Lawrenson, a buy-to-let expert who runs the website lettingfocus.com, even suggests placing a spoof advertisement in a local paper. “It’s important to stress-test before taking the plunge,” he says. He is certainly putting his money where his mouth is: two weeks ago, he exchanged on a two-bedroom buy-to-let house in Brockley, southeast London — his first property purchase in five years.

39 comments:

Anonymous said...

sigh...

Anonymous said...

The idea of buying houses just to sell them is what's gotten so many Henry and Henriettas so upset recently.

Richard Elliot said...

Good news as I might be renting my place out soon!

Sadly I bought near the top and am not snapping up a cheap bargain now..

Anonymous said...

This is bad news for the area. Who wants a steady stream of transient neighbours who care little for the community. Why encourage people to buy in our area when they dont care to live here.

Landlady Lil said...

Because sometimes buying-to-let is a good thing. I live on the ground floor of a three storey converted house. The middle flat has changed hands four times since I moved in in 2001. Not one of the owners has looked after the property or their share of the garden. I bought it in 2007 after three successive buyers pulled out. Now I rent it out and the house benefits hugely - it's in my interests to kep the property nice both for myself and for my investment. And I have the option to convert the two into one if I ever needed more space (and won the lottery, obviously.) I recognise that most buy-to-let owners don't take this kind of interest, but some do - so not all buy-to-lets are bad for the area.

Anonymous said...

I don't believe that this is the bottom of the market. Mortgage brokers and estate agents are praying that it is but we are only just finally accepting that the economy has been less productive, there will be cuts in infrastructure projects and people are still going to be cautious for some time. People will need to invest for a minimum of 10-15 years before they will see a gain . the rental return is relatively poor in brockley at the moment (will probably increase once the tube opens)

I think for a long time (10+ years) many of the brockley flats have been neglected because owners have rented out the accomodation. hopefully more people will buy to live and see their Home as an investment instead of buying purely to let.

853blog said...

Bring on the next crash...

Anonymous said...

yeah man..let's all live in teepees.

Hugh said...

Rupe, Octavia and friends are all welcome. I'll be selling as soon as the next spike arrives.

Angel said...

I'd like to see some sensible discussion on this blog about renting and landlording. We have the buying / ownership discussion elsewhere, but so many of us are in the rental market -- voluntarily or not. (and that goes for both landlords & renters).

i'm also a landlady - and like Lil, i do take a huge interest in who moves in and how the property is maintained. i am one of those 'reluctant landlords' you've been reading about, and that flat is all i have. i care greatly about what happens to it and to Brockley. And stable, good tenants do amazing things to my bottom line, too...

I'd be glad to hear what's happening to the rental market - rents really down, on last year? Are flats going quickly, or no?

Anonymous said...

David Lawrenson, a buy-to-let expert ..... his first property purchase in five years.So 3 and a half years before property prices peaked he stopped buying properties?

Is he a Daily Express reader or something?

The Oracle said...

He lives in Ladywell.

Anonymous said...

there are houses all over Brockley up for sale and not going anywhere the only people Ive seen move in is the squatters in Wickham and Thyritt rd....

Headhunter said...

What did I tell you? Everyone was saying wait til 2010, now's the time to get in...

I know quite a few people who have started looking around for property again, not necessarily to rent out, but to live in. Flats along Manor Ave seem to be selling pretty quickly at the moment.

fred vest said...

what you all seem to be forgetting is that the housing market (as an investment, not a home) is not too dissimilar from a pyramid scheme, as long as there is plenty of money coming in at the bottom (with first time buyers providing the bulk of this) then the whole structure stays in place - any upturn that exists in the housing market at the moment is specifically due to certain sub-categories of purchaser (buy to let, those limited few with a substantial cash chunk to put down)and this does not include the critical category of first time buyers

with unemployment doing nothing but rising and with no sign of it stopping for at least another year or so until 1 in 10 of us are out of work i can't see any reason for anyone to get excited about house prices, lets face it, you're all going to have to treat your house primarily as a home for the next decade or so, make the most of it and hopefully over time the nauesauting subject of house prices will gradually be eradicted from social usage and we'll all look back at the odd time in history when the myth was sold to us that you could literally make money out of nothing while not actually creating any value in society (this is also a fitting description of the broader financialisation folly that has taken place the last 3 decades)

Monkeyboy said...

Must admit Fred I always felt a bit unadventurous not borrowing hugely against the value of my house. Now I've got one mate who's got a couple of rental properties bought on fixed rate deals with little rent coming in. He can just about cover the interest payments, the principle is not reducing. I'm currently sat on about £80k of mortgage on a house 'worth' at least 3 times that and feeling very relaxed.

Who wants to be rich anyway? (well I do a bit actually)

Hugh said...

In a rising market you'd be a fool not to maximise leverage, provided you sell before the top.

Monkeyboy said...

woteva

Headhunter said...

What Fred says is exactly the reason to get into the market. Everyone else is doom and gloom but at a time when prices are not tumbling and seem to be at least levelling off and when interest rates are at a record low, so borrowing costs are minimal, now is the time. You don't buy into a market when every man and his dog is, you buy in when everyone else is scared to. You have to take some risk to make money.

From an investment perspective, the housing market really is looking attractive to some. The financial markets are highly volatile, Sterling is very low, so where (if you have excess cash slopping around) do you stick your money? Housing is the best place at the moment.

The Cat Man said...

i think paying off existing mortgage debt would be better. if we do indeed get a spout of delation, our debt actually grows in real terms compared to our standard of living

Headhunter said...

With borrowing costs at a record low, it's not necessarily better to pay off existing debts, it may be possible to make more money than you are paying out on existing debts by buying property to let.

The Cat Man said...

short term gain vs. long term gain - the debt will still be there in 5-10 yrs time, the tennants wont be

The Cat Man said...

and borrowing costs arnt actually that low for new borrowers, mortgages rates no longer track the bank of england rate like they used to as the market is no longer competitive

fred vest said...

"when interest rates are at a record low, so borrowing costs are minimal"

even catman can see that this argument doesn't obtain in present circumstances

go and get a quote from a bank today for a mortagge and see what you get

Headhunter said...

You're probably right about rates for 1st time buyers but I think more attractive rates are available if you're at 50-60% LTV. First time buyers are excluded because they often need 80% LTV or more.

Cat Man - the debt may still be there but why shouldn't the tenants? Properties to let in Brockley seem to get snapped up pretty quickly and stay occuipied IME

Fred Vest - Of course Cat Man doesn't support me in this, he's an Accountant, they naturally shy away from financial risk, it's in their DNA.

drakefell debaser said...

If you look at what the cost of borrowing was in 06 and 07, today’s mortgage rates are good for some situations but the borrower of today is most certainly paying for the mistakes of yesterday.

If you are looking to buy a place and rent it out you will not find low interest rates without a 40% deposit, anything less usually incurs a fee from the bank of 2.5% and in some cases 3.5% of what you borrow. Most of the banks in this market have either gone bust or have been mothballed by their parent company so the pickings are thin compared to what they used to be like.

Given the increased initial investment required now, the attitude of those landlords that did not care about areas they bought in could change. Time will tell.

patrick1971 said...

In more light-hearted property news, there's a house in Wickham Road currently on Rightmove for £1.7M. Looks like a lovely house, but check out the above-bath decoration. An "interesting" choice...

fred vest said...

"You're probably right about rates for 1st time buyers"

combine this with the point about the housing market/pyramid scheme analogy and what do you get!

Headhunter said...

Well it seems that you don't get a property price crash!

fred vest said...

i get the crash, what you don't seem to get is the conditions that prevail after said crash

the galling thing is at present however is that there is still a chronic shortage of housing based on social need, this now co-exists with loads and loads of empty perfectly adequate housing that can't be sold or rented for love nor money. the one time in recent history where house prices are starting to approach a more accessible level/sustainable level for a wider section of society, the shortage of credit/high fees/high cash requirements/uncertaintiy about future employment exclude that very group from any opportunities that house price decreases should bring about - and for as long as this goes on the whole pyramid scheme will cease to operate as it once did

Swifty said...

Brockley property in Evening Standard 'buy-of-the-week'
shocker

Brockley Jon said...

The ES really have changed their tune ;)

patrick1971 said...

£360K for a split level flat? That must be in one of the top roads in the conservation area, surely? Around Crofton Park, whole houses are up for around £320-£330K.

Headhunter said...

Flats in the cons area don't seem to be priced that differently to whole houses outside anyway, although that sounds a lot for what it is, however it seems well spec'ed inside.

tyrwhitt michael said...

HH you will be pleased to know said flat is in Manor Avenue.

It's bound to come down drastically in price therefore if the Nursery is granted permission ...............or not

Tressillian James said...

Did a check on prices today - they are up compared to a month ago - are the estate agents playing on the media interest in Brockley.

It would seem that the place I bought in summer 2007 is heading back towards the price I paid for it.

Mark said...

Yes, despite what Hugh says about prices being back at 2004 levels, it seem like nothing of the sort is happening in Brockley.

Nice to see that flat is on Manor Ave. I think they're being optimistic at that price though!

lettingfocus said...

Yes I do live in Brockley and it's nice to be talked about (in an Oscar Wilde kind of way.)
I hope I know something about house prices ....but perhaps not.
You will have to find me and my site and blog on the net to see if you agree (no I'm not going to publicise myself with my first blog here - perish the thought)
I'll let you find me on line.
It is funny though nothing winds up people as much as other people talking about house prices.
My view is that houses are for people to live in but there is not enough of them and the bottom line is that is why they are going up in price.
Forget all the clever stats about house prices ratios to incomes, there are more people now living in the UK and due to the credit crunch househuilding is very low indeed. Simple demand and supply ... plus a bit of speculation that is right now washing out of the prices.
"Go figure" as the yanks might say.
But if I was a first time buyer I would be out there now looking to buy... but still it is a nice day and Hillyfields is tempting today.
Finally, arent we lucky peeps having the Brockley Max
Regards David Lawrenson

Michael said...

Facilities at a place sometimes become beneficial for constructing a real estate.

best buy to let mortgages

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