zone 1 2 bed flat - but where would you buy?

[ilovepinecones]

Thinking of investing 500k in a zone 1 2 bed flat. Where would you look and why? Some criteria..
Would probably go down Airbnb route as would want to use it quite a lot for staying over for work/fun weekends up.
Have two kids so need 2 bed and fairly safe area really as well be wanting to stay there, just not all the time.
Don't need garden. Prefer not as extra maintenance. A balcony would be good.
Work near city but not tied to there really. Be good to look somewhere which still could be a good investment, over long period of time.
Happy to do some work - would quite like that.
Thanks for any good ideas. I need to try not to think of just areas I like, like clerkenwell, Marylebone, Notting hill (no chance!), but also other interesting areas too which are good value (as far as zone 1 goes).

I would be very surprised if you could find anything half-decent with 2 beds in Zone 1 at that price, apart from one with a short lease.

If you intend to let it via Airbnb for the majority of the time, you may have to tell the bank.

Why would a family of 4 (the likely market) rent your airbnb with no garden vs other choices?

What proportion of the year will you want it vs letting out?

Elephant and Castle?

www.rightmove.co.uk/property-for-sale/property-57441716.html

I would've very shocked if you can find much in z1 for 500k. Does it have to be z1?

Oh really? If I search on rightmove zone 1 up to 550k it brings up quite a few places still.
But not would consider zone 2 as well for sure as long as easy access to central London.
It's more to do with keeping foot on ladder in London but still being able to enjoy London using the property so way out woolwich way not really looking at for example.
Some good points I haven't thought about yet re renting out thanks - have not got daydream head on at the mo, not business head.

They are almost certainly in Council blocks at that price - which is not to say that they wouldn't be a good investment long-term.

What about this:

www.rightmove.co.uk/property-for-sale/property-39498363.html

nice area and a lot of these are privately owned?

Would probably go down Airbnb route as would want to use it quite a lot for staying over for work/fun weekends up.

Most UK property leases set out 'Permitted Use' of apartments as 'Not to use the Flat nor permit the same to be used for any purpose other than as a private dwelling house in the occupation of one family' or similar wording.

Using the flat for short-term lettings is a breach of this clause. So if you're thinking of buying a flat to use on AirBNB, be mindful that you should check any use restrictions before committing.

Any decent freeholder will take a breach of the Permitted Use clause very seriously, as it can cause nuisance to neighbours and potentially breach planning conditions.

So if you decide to ignore the lease and go ahead, be aware that you could have legal proceedings taken against you if the building's freeholder or managing agent discovers the activity.

The Pimlico flat is in a great location - my problem would be the service charges. About 15 years ago I knew someone who bought on that estate, not sure which block, and she was stung with a huge bill for tens of thousands when the block was to be refurbished. Obviously an outcry from the private owners and I'm not sure of the final outcome/charge.

The council tenants of course would have paid nothing.

PS not judging or berating your plan BTW, but most leaseholders who decide to go AirBNB or short-term let route have no idea they're breaching a significant lease clause.

As a current buyer I'd warn you to be aware the asking prices aren't what places are going for. Places are going for far far more and EA have told us they mark it down to bring in more interest.

I responded to the OP as have been thinking of down-pricing, and for the past year have been looking in Zones 1 & 2 for a 2-bed flat at £500,000 and I know that anything of reasonable quality, decent surroundings, etc. is just not out there!

zone 2, SW8/SE11/SW11? Zone 1 almost imposable to find 2 bed in budget.

Two bed ex council flats in our part of zone 1 are on the market for £400-£500k - I understand they tend to go for a bit over asking. Nearest tube Old St so great for transport and the City. I actually bought our flat under RTB and it was valued at £400k, although that sort of valuation is different from being on the open market. The area is OK, not naice like Clerkenwell or Marylebone but very central and loads of new private developments being built locally which will make it more gentrified.

E.g something like this
www.rightmove.co.uk/property-for-sale/property-52523864.html

Other areas where you might get a 2 bed in budget (in an ex council block) could be Angel, Borough, Elephant and Castle, Aldgate East, Shoreditch High Street, Hoxton. All of these areas are reasonable but definitely have crime/ASB issues but from experience are safe enough as long as you're sensible.

Hmm lots to think about thanks. Think zone 2 may work better then. And need to look more into Airbnb restrictions too - thanks for heads up. Maybe there will be price crash soon ha ha (doesn't look likely)

It might work for you if you let it as a series of short lets - ie for a month or few months at a time and then as a family you used it in the weeks between.....or set it up as a Mon-Fri rental and you go and use at weekends?

Lease terms mostly prohibit short lets.

As do a lot of local councils; they come down hard on anything under a 6mo AST.