Buying Investment Property in Deptford

Buying Investment Property

Buying Investment Property in Deptford?

Looking to buy investment property in Deptford? It’s a sound choice, yet one that must be executed correctly. This article tells you about buying investment property in Deptford, the types of deals available and the likely returns. Remember, buying property in Deptford has, on average, yielded in excess of 8% returns per year, and significant capital asset growth.

Property Investors in Deptford have received a lot of Government and economic support. Much of this support has come indirectly in the form of the lowest interest rates in history. This has been bad news for savers, but of course good news for those buying investment property in Deptford using mortgages.

Buying investment property in Deptford with cash outright is also a sure fire hedge against any rise in interest rates. Some investors look to buy properties in need of renovation or a change of purpose. They then renovate those properties and rent them out on a long term or short terms basis.

Once these properties have been renovated and rented then investors in Deptford may refinance the property by taking a mortgage over the property at a higher value, using the income to pay the mortgage and reinvesting the profit from the deal into more property in Deptford or elsewhere.

How easy is it to make money from buying investment property in Deptford?

Guess what? It may be unsuprising to learn that this model is an absolute pain the backside for potential property entrepreneurs in Deptford.

Which properties in Deptford should you buy? What areas of the Deptford housing market are going to give the best returns? Do you know the planning application process with the council? Or about the change of use regulations?

The question you have to ask your self about buying investment property in Deptford is how hands on you want to be?

If you want a new career as a developer or property project manager then go for it.

If, like thousands of other investors you simply want to take advantage of the UK property market, and earn more than the poxy interest rates available from the so-called people’s banks on the Deptford High Street then there are many investment funds, not readily available to the general public.

If you want a new career as a developer or property project manager then go for it.

If, like thousands of other investors you simply want to take advantage of the UK property market, and earn more than the poxy interest rates available from the so-called people’s banks on the Deptford High Street then there are many investment funds, not readily available to the general public.

Map of Deptford

Deptford is an area on the south bank of the River Thames in southeast London, within the London Borough of Lewisham. It is named after a ford of the River Ravensbourne. From the mid 16th century to the late 19th it was home to Deptford Dockyard, the first of the Royal Dockyards. This was a major shipbuilding dock and attracted Peter the Great to come and study shipbuilding. Deptford and the docks are associated with the knighting of Sir Francis Drake by Queen Elizabeth I aboard the Golden Hind, the legend of Sir Walter Raleigh laying down his cape for Elizabeth, Captain James Cook’s third voyage aboard HMS Resolution, and the mysterious apparent murder of Christopher Marlowe in a house along Deptford Strand.

Though Deptford began as two small communities, one at the ford, and the other a fishing village on the Thames, Deptford’s history and population has been mainly associated with the docks established by Henry VIII. The two communities grew together and flourished during the period when the docks were the main administrative centre of the Royal Navy, and some grand houses like Sayes Court, home to diarist John Evelyn, and Stone House on Lewisham Way, were erected. The area declined as first the Royal Navy moved out, and then the commercial docks themselves declined until the last dock, Convoys Wharf, closed in 2000.

A Metropolitan Borough of Deptford existed from 1900 until 1965, when the area became part of the newly created London Borough of Lewisham.

What are Property investment funds

These funds are hidden in plain sight. A global network of nods and handshakes at the Rotary club or on the Golf Course. Some people refer to these private investment vehicles as hedge funds or REITS. However, they are not. These are the funds that wealthy individuals and families invest in to get richer.

The barrier to entry to these exclusive clubs is around £50,000 although do remember that these private investor funds have collectively trillions of dollars under management.

And no, these funds are not available at the bank in Deptford, nor are they covered by the FCA. Your IFA or Accountant won’t bring you the opportunities because of course they won’t receive their greasy commissions.

Investment funds are not even allowed to advertise so you’ll never hear of them unless a friend recommends them.

If you don’t know about these firms, and opportunities then these investments aren’t for you.  You will need at least some experience with previous investments to be eligible and of course they are extremely picky about the investors they accept. They can afford to be. They don’t need your money, but they can put your money to work for you like never before.

Some of these funds don’t invest in property at all. You’ll know them as hedge funds. However, there are a considerable number of Asset backed Investment vehicles delivering significant income and long term growth.

Top three international investment properties realtors in the UK and Deptford

Physis Realty

Apollo Asset Management

The Carlyle Group

Is buying property investment in Deptford a good idea?

The top three actively managed funds directly significant offshore funds into the UK market seem to think so. Of course there’s much speculation about whether rates will rise and the uncertainty around buying property investment in Deptford. One fact remains often overlooked though, during the frantic and heated investment discussions around the dining tables of Deptford

Many individuals and families in Deptford want a safer, long term investment. They realize that property is a relatively illiquid investment and they simple was a property secured investment that provides a nice balance of income and capital appreciation.

Many people looking at buying investment property in Deptford have plenty of business and investment initiatives already in play, whether it be in Deptford, further afield or in a safer offshore investment fund.

Types of investment property in Deptford

It is important to understand the main types of property investment in Deptford

  • Undeveloped land in Deptford
  • Greenbelt land in Deptford (speculative investment)
  • Brownfield land around Deptford (and apply for planning)
  • Commercial property in Deptford
  • Direct Booking Vacation rentals in Deptford
  • Residential real estate property in Deptford
  • Operating property investment in Deptford
  • Distressed property investment in Deptford

Types of property investment deals in Deptford

The main types of property deals in Deptford are:

  • Buy to let in Deptford
  • Buy to hold
  • Serviced Accommodation in Deptford
  • Old Peoples Homes
  • Car Parks
  • Commercial Property in Deptford
  • Buy to change purpose

Buy to let in Deptford

A buy-to-let mortgage is a mortgage loan designed specifically for this purpose. Buy-to-let is the process of buying an investment property in Deptford that is specifically let and is one of the most common types of mortgage in the UK and many other countries. Obviously buy-to-let in Deptford does not have to be done with a mortgage and the sector does attract a significant number of cash buyers.

The purchase – to – rental of real estate is usually a residential property in Deptford, but some terms also include a small number of commercial properties, such as office space and retail space. As with a lease, the benefits of buying a rental property in Deptford as a landlord can include the ability to build up assets as house prices rise over time, as well as the benefit of a low interest rate.

The main risk is that a landlord may borrow to buy the property in Deptford, expecting the house to be sold at a higher price later, or that rental income will cover or exceed the cost of the loan.

Once the price has fallen, this lever could push the landlord into negative equity and, if he cannot meet the terms of his mortgage repayment, the bank will try to take possession of the property and sell it to get the money he borrowed. Banks in Deptford can lend to both landlords and tenants, suggesting that the capital is being used for investment rather than rental income, as a professional investor might do.

Buy to hold in Deptford

Long-term rental property in Deptford is widely considered one of the best ways to diversify your property portfolio. So buying and owning property means much more than just investing in a single property, it can bring you a variety of benefits, such as access to a variety of investment opportunities and the benefits of long-term ownership.

While some investors in Deptford may be confused or intimidated when they start, buying and owning property can be one of the best investments you can make if you do your due diligence before you start.

Buying and owning real estate is an investment strategy for investors in Deptford who buy and hold real estate over a long period of time. The owner usually intends to sell the property later, but leaves it to you to help you buy or finance it.

The rental income from the property in Deptford generates short-term income that can be used to pay off a mortgage or to invest money. The strategy of buying and holding property is one of the most common investment options.

The value of the Deptford property will increase over time and the investor will benefit if he is willing to sell it later. The investor benefits from being bought in the expectation that the value of the property will rise over time.

Investors considering a Deptford property purchase and holding strategy should do their best to calculate the potential income from renting out the property. The bottom line is that monthly income should exceed the cost of rent in the first year of ownership and annual rental income over the next five years.

If the investor plans to sell the Deptford  property later, possible profits should also be taken into account. Finally, any losses from taking out a mortgage or other type of property financing must be taken into account, as well as any gains from the sale.

Convert Deptford property to Serviced Accommodation

For property investors in Deptford, converting a home into a serviced apartment would mean higher rents than the normal rent increase. As a result, many people are buying investment property in Deptford and then converting these homes into serviced apartments to maximize yield.

The types of property used for serviced accommodation in Deptford are often the same as those you would use to buy to let. Where you have a guaranteed short-term rent, it’s not as rigid as renting out a property.

Disadvantages of investing in Serviced Accommodation in Deptford

  • Serviced accommodation is more of a business strategy than a property strategy, and the workload is far more intensive. Seasoned veterans liken serviced accommodation investing in Deptford to the same as running a traditional bed and breakfast. It’s no surprise that the other name for Deptford serviced accommodation is a holiday let.
  • You’ll need to furnish your serviced accommodation in Deptford
  • You’ll need to clean the rooms and change the sheets every time your guests leave.
  • Who does all the laundry?
  • Who does all the cleaning?
  • Who’s going to do all the work for you?
  • How are the guests actually going to get in?
  • Massive Payments to Online Travel Agents
  • Are you going to have somebody to do a meet and greet?

Buying investment property in Deptford to convert into serviced accommodation or holiday lets is not really considered an investment, because the amount of work involved make it a full time job.

Buying Investment Property

Buying Investment Property in Deptford