Hi all,
New to all of this. I have a flat I bought a year ago for 155,000 in London, It now worth about 185,000.00.So want to re-mortgage and take out the 30,000 and put this into Buy to lets.
What I am trying to work out is, what is the best way to proceed, buy 2-3 cheaper house in the north around 40,000 each, try and get a good yield (But the problem I can see here is that value of the house will not go up that much)
or
Do I buy a couple of flats in London that have a lower yield, but have more scope to grow in value faster.
I guess my question here is, to grow a portfolio of flats, you have to remortgage your flats that have gone up in value, so if you buy cheaper flats that don't grow inb value, how can you keep going on buying further flats / houses.
Hope that makes sense?
Just want to know which direction is best to start looking at buying. I am ready to buy soon.
Thanks
Malachi

Hi Malachi
I get your drift and I like your thinking! However, do remember that buy buying "oop North" you will have to pay someone to manage your property/ies.Some of these thieving *******s will charge you between 10-15% plus vat, and do very little for the money they steal from you. I know this does not answer your question, someone more experienced/qualified will be along soon to do that. I just wanted to alert you to the problem of managing agents(and also to get it off my chest)
Good luck!!
Nelson

If you're thinking buying more expensive properties for its quicker ROI, you should really make sure you would get that quicker ROI. Some properties just don't increase their values much as they're expected. But that would really be a good decision. Investing on cheaper properties would give you more in terms of quantity but you should also consider how it would be managed.