London investment flat

[goldpendant]

Where would you put your money for a 2 bed London investment flat?

We are SW suburb and would like to manage it ourselves, so thinking, Clapham, Balham, Southfields, Putney, Richmond? Any other ideas where we might get a bit more for our money but will still accrue good appreciation over 20 years or so?

Potentially for the kids to rent when they graduate/if they want to live or work in London, but mainly as a long term investment.

Thoughts appreciated!

Streatham Vale / Mitcham / Norbury all cheaper than the areas you've mentioned with good links into central London. Probably more headroom too than the already very gentrified Balham / Streatham Common areas etc.

Morden/Colliers Wood/Tooting?
I wouldn't touch Mitcham with a barge pole FWIW.

I think several of the areas you list are already at top dollar...is there room for them to increase...??..clapham and richmond are not cheap at all...what yield are you looking for...??...I own 2 rentals...one in walthamstow and another in redbridge but no mortgage or loans on them...my agent friend tells me yields in london are very low now...look outside of london or are you hoping for capital growth only..??

Streatham, Earlsfield, Putney, Tooting, Morden

I also wouldn’t touch Mitcham

Thinking for capital growth more than rental yield really. Would like a tube station really otherwise Earlsfield would be ideal. Don't know Tooting at all, is it okay these days?

what's your budget?

Friend lives in tooting bec and seems all ok...she is happy there.

I like Putney, the high st v v busy and a bit mixed retail wise, but the river is lovely of course. Most if it is nit near a tube though.
Clapham and Balham more urban, though pretty pockets. Richmond is more expensive - I love it there but it is very pricey. Southfields is good too, I think of it more family oriented.
You are going to need a healthy budget for any of those places.

Tooting is a mixed bag, but a good mixed bag IMO.
Lots of people priced out of balham/clapham so moved a little further down the road. Loads of good food places, tooting market is great place (in ordinary times) to meet for informal food and drinks)
The rest of upper tooting road/high street is pretty full of any food you could want.
A good few bars and pubs.
Good character properties, the furzedown area is a good bet.
You've got St George's hospital so there's a big Med student population.
I lived in tooting years ago when it was still a bit rough, and through work I visit frequently. Got a soft spot for the place!

Tooting, Streatham, Norbury all on the up. Houses being bought by people in flats in Balham, Brixton and Clapham who have to move further out to get a house.

Good rail links are as popular as tube in S London, IMO.

Many parts you have mentioned haven't seen much growth in flat prices over the last 5 yrs.
If you're set on London you need to choose a cheap area.
Tbh you are probably better buying a cheap house in Milton Keynes.

Long term I'm not sure how much of an investment a London flat is if buying at today's prices.
Rents are already falling & in the future we will have more remote working.

Might be worth looking further across into SE London - I'd go for somewhere like Denmark Hill, camberwell or Herne Hill. Good transport links, near Kings hospital, great local amenities for people in their 20s/30s. Still room for capital growth, more so than Richmond, Balham etc I'd think. Great place for your dc in the future too, near the action of Brixton, camberwell, peckham.

Depends on what your budget is but might also be worth looking for bigger 3-bed place to cater for home working. Areas like peckham/queens road, brocket, nunhead or new cross get more for your money though not as nice as other areas.

All tax incentives on that asset class have been removed or are on course to be by 2022, rents have dropped by 6-14% across London, reducing already abysmal yield to nothing at current price level. On the bright side, you ll find plenty of offer as many retail BTLer are exiting the market. If you are super savvy about the market, figure out what sort of price you can buy to get a decent yields and through some low balls. Or wait for the house of card to collapse.