Beckton, East London

[John_Howe]

Hi there,

I'm looking to buy my first property for rental purposes. I've narrowed my search to one bedroom freehold properties (just prefer the idea of running my own show as opposed to having a leasehold - well, at least for my first investment).

Moreover, I'm becoming quite warm to the idea of buying in Beckton. There seems to be good quality properties there for a decent price.

From what I've seen, read and heard; the rental potential is good and it equates to a sound yield, around 6% - 7%.

However, I'm also keen to see some capital growth in the next few years. So I was wondering, does anyone have any well-informed speculations (or as well-informed as one can be) on how the property prices in Beckton will perform over the next five to ten years?

As I prefaced, I'm new to this game, so I apologise if this question is somewhat vague or unspecific, so if you need any further information to make an assessment, let me know.

Cheers,

John

[Richlist]

My well informed speculation is that capital values will be in a downward direction and occasionally flat. Capital increases will therefore be non existant.

Your only hope of making any money from property is to buy well below market value & /or property with development potential or value enhancement potential such as property with large gardens, property that can be split into 2 or more properties, property which can have an extra bedroom created etc etc.

With a gross yield of 6%-7% is it really worth it ? You are likely to end up with 3% net after tax.

You can get 3% in a building society with no risk. Getting 3% with all the risks & uncertanties coupled with the fact that you are new, inexperienced and likely to have occasional problems makes it untenable .....in my opinion.