£250k - invest in Cambridge property?

[willowcrest23]

Hi, we've been living just south of Cambridge for over a year, having moved from up north.

We will be coming into some extra money and are thinking of buying a 1-bedroom flat to rent out in Cambridge. If you had £250k, where in Cambridge would you buy?

The very new builds right beside the train station, the area near Cambridge Leisure Park (like the Belvedere or Glenalmond Avenue), or somewhere in the city centre? Or elsewhere?

Is a house on land, e.g. terrace house, a better choice?

This will be our first investment in a property. We both work full time but flexibly; DH works from home. We're no good with DIY, which is why a modern apartment appeals to us, but are keeping an open mind.

Any thoughts will be much appreciated!

You're not going to get anything that isn't dodgy as fuck very much for £250K, OP - the new developments (such as the massive station development at CB1) are all well over £300K except for the shared ownership properties. The few flats at that price are well away from the centre and in older houses broken up into flats. Terraced houses are also all going to be at or over £300K. The Cambridge market is allegedly slowing down faster than anywhere else in the country (or so says the not-so-reliable local rag), so if you hang on a while prices might drop enough to be affordable.

Sorry to be so negative - Cambridge prices are stupid

I know nothing but would instinctively expect those new builds to be very expensive for what they are. I would instead look near north cambridge station - orchard park or off milton road. Also good for access to A14.

Although if I were investing in property, I would possibly look outside Cambridge anyway as house prices here are so OTT. Have you spoken with an estate agent or rental agency to get their views?

Thanks SiliconJen and FJR.

Totally agree Cambridge prices are crazy but we'll be living here long term and at least are thinking Cambridge city itself will always have appeal for rent.

Realise £250k may not be enough. We could kick it up to £300k -- for example: Fitzwilliam Road, Cambridge
www.rightmove.co.uk/property-for-sale/property-55928887.html

I'll look in the area you mentioned, SiliconJen.

Only just started thinking about it and will be asking agencies as well, plus monitoring sales/rental prices online. We're not in any rush so your thoughts about hanging on (especially post Brexit) make sense FJR.

LOL at the idea of buying a house near the station or in central Cambridge for £250k

We sold a lovely 2-bed flat in a nice but not central Cambridge location for £250k in 2014.

Hi,
Do you want to buy a property that eventually you may live in or are you looking for an investment property?
Prices in Cambridge are OTT and it is unlikely they will go up massively over the next few years (maybe in the north closer to the new station). If I had that money I would not invest in Cambridge (to rent out). The return on your investment is small. For example if we rented our house it would rent for approx 1200 per month (recent,y valued around 400k). We could buy 4 x 2 bed flats (100k each) in my hometown in Northern Ireland and rent out for 650 per month each, doubling our monthly rental income. There are cheaper areas that you may not want to live in yourself but have seen highest property rises- Luton, Basildon etc and may be a better choice for investment??

I'd go near the science park/new station. Once that new station is open that part of town will become a lot more expensive, I think... This, for example?
www.rightmove.co.uk/property-for-sale/property-46171155.html

Thanks all. Investment property only, and we can get a mortgage to top up as agree 250k is not much in Cambridge.

I've been looking at rental yields and agree they aren't high, though was thinking property prices might go up or retain value vs other parts of the country. Will check out north station area and also Luton, etc.

agree with Tid1 that rental yields are not good here in Cambridge so unless you are only looking for capital growth I'd look elsewhere (where you could get both high rental yields and some capital growth in the longer term). We have a small portfolio in the North of England, sourced and managed on our behalf by a great team. A perfect hands-off investment which brings in money every month and we bought wisely so our capital investment has already grown.

I don;t know much about investment property other than what I have gleaned from friends etc but agree if you want a higher month on month yield you would be better off buying in somewhere like Northampton or Kettering where properties are much cheaper but you can get a much higher return on your rent. However if you want a long term investment then Cambridge maybe a better bet as prices will rise more here. In fact the prices just never seem to drop haven't done in the 20 years I have lived here it is incredible. So depends on what you want. The other areas you could look at are places like Ely or Downham Market or even St Ives. Look at places that are on the rise

Hope that helps