Investment property in London

[FreckledLeopard]

So, am hoping someone more knowledgeable may be able to help me.

I am fortunate that I may be in the position to purchase two buy-to-let properties in London. Maximum budget per property would be £300,000.

I know that rental yields are increasing and certain areas are 'up and coming'.

Where would you invest? One thought I had was docklands - lots of professionals, lots of properties.

However, I was also thinking about places such as Putney or Southfields.

Any advice would be gratefully received.

When we were looking a year ago, Dalston was suggested. We went for Clapham Common though, as it's easy to get to from the A3. No idea if it's a good investment, but I like it!

If you want a return on your capital and a good rental yield I would pool your 2x 300k and go instead for 1x £600k property in a fab established area. Up and coming is great ( I live somewhere up and coming) but go somewhere already established and it will just get better. Friends who invested in "posh" areas with the same amount of money as we did ten years ago are now in the money. We have made money but not the same percentages. Get a 2 bed just off northcote road rather than 2x in up and coming.

Putney and Southfields are lovely and not what I would categorise as up and coming btw.

I live in Southfields and there seems to be a healthy rental market with quality properties going under let fairly quickly. The area doesn't have a huge number of new or recent flat developments so I think traditional maisonette properties rent well here. There's a controversial development undergoing the planning process at the moment which will be located opposite the tube station in the old Plaza cinema building - 20 or so flats (controversial because many locals wish to reinstate the cinema and some community facilities within the build rather than more retail).

Putney has more developments with two new ones underway opposite and adjacent to East Putney tube station.

The main local agents in Southfields are Winkworth, KFH, Douglas & Gordon (a recent arrival into the area), Haart and Barnard Marcus with Chesterton rumoured to be arriving soon. It'd be worth having a chat to some of these agents to get a better picture of the area.

I own two rental properties in putney and have never had a void week other than by my own design. the first property is one bedroom period property and I get 1250 pcm and the second is a modern two bedroom and i get 1325 pcm. purchase price for both properties would be circa 325k. I could more if i held out for a little longer on the modern property and did a bit of work on the period property.

If I were to do the 1 x £600,000, what other 'established' areas would be good? Would proximity to the City be a bonus (thinking N1 - know the area quite well)?

Thank you for all input so far!

Yep in my book the areas I think are established without being Eaton Square mega millions are N1, Pimlico, Notting Hill, Borough, Highgate, muswell hill, Dulwich, Wimb Village, Battersea, being area between the commons and wandsworth common, clapham (abbeville rd) parsons green, fulham etc. There are probably many more. These areas appear thus far to be almost recession proof with record prices. Whether that will continue, who knows but these are smart areas where people will always want to live. Just my opinion though, am no expert! Edgier areas have properties sticking, the popular ones sealed bids again.