Pros and cons of buying ELA flat in central London - how have they faired to date as an investment?(4 Posts)
Something like this ... do they make a sound investment or not - are they hard to sell on?
Can't comment on whether it would be a good investment, or whether it would be difficult to sell on, but this is a great area and I would have thought you couldn't go wrong with an ex-LA flat here.
Anything in central London is a sound investment, surely?
How close is it to a University? There is really big money to be made from ex-council if you are within a safe walking distance of somewhere that attracts foreign students. Think £200 per week per bedroom including the living room. There was an article recently about an ex-Council flat in Covent Garden which fetched something well north of a million because of its student appeal.
We are paying a lot for my son to share an ex Council flat near Great Ormond Street. Our logic for agreeing to pay so much is that first he is second year and sharing with third years from Hong Kong so will be in a hard working environment which can only help his own results. (He has the smallest room so pays a bit less.) Second these boys cook and clean, their parents are already paying a lot for them to be there so they don't plan to waste money by eating out. The flat was immaculate when my son moved in, and the tenancy has been going for several years. Third he is within five minutes walk of his University library. No travel costs, and not much time wasted.
The only thing wrong when my son moved in was that the mattress was completely shot. The landlady agreed instantly to replace it. I am not surprised. She is making a fortune.
Students are now the largest occupation group for new lets in Mayfair, overtaking bankers. The same will apply to any ex-council block close to UCL, KCL, LSE or Imperial. London Universities hold equal appeal to Oxbridge for the children of the world's super rich. Many are not here to party but to work very very hard. If you can get the right ex-Council block there are very good returns to be made. Speak to a letting agent or perhaps to the lettings people at the nearest University to get a sense of how attractive a flat is to this market. (And note some London Universities including UCL offer both a deposit guarantee scheme and an arbitration serive. Misbehave as a tenant and it is noted on your degree.)
And yes DS can discuss the virtues of basmati over short grain, and can make a mean dumpling plus has picked up the work ethic and aspirations of his Asian flatmates, and seems to be able to live on a tight budget. We are paying over the odds but probably a good investment. He also had a fantastic summer travelling across Asia staying with friends.
That is a really good point about students - so it could make a strong yield and provide an income even if the long term capital gain is not great. I am looking at Whitchapel area - so there are students at Barts and The London School of Medicine and Dentistry next door and QMC is nearby.
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