But To Let(BTL) investment in Oldbrook Milton Keynes(MK)

[dushanmak]

I'm planning to invest in a BTL property in oldbrook MK. After 10, 15 years later I want to sell the property. I have a good 4 bed townhouse in mind for 325K in oldbrook. I feel this is a good bargain. I have seen in several posts in internet that oldbrooks is not a good place to live. Though I won't live there, the house should be easily rentable and after 10/15 years should be able to sell easily. So my question is due to the fact that the bad image of the oldbrook, will I be able to rent this easily ? Is there any other areas better than oldbrooks for rent. I value your inputs.
Thanks in advance

You would get a better return by investing it in a portfolio. You can shield from CGT. You should always have a varied portfolio and I'm hoping this investment isn't all your money. I'm not far from MK. Most of it is meh. Why invest in an area you don't know?

all your profit will be killed by CGT if you sell it.

Thanks TizerorFizz for the response. I'm just trying to invest for my first BTL property. I'm not far from MK(14 miles drive) but not sure whether oldbrook is in a area where there is high demand in rental. It is walking distance to Central station. I'm buying via a LTD company with a mortgage. I checked places like Shenley Church End and Broughton which are highly rated for good residential areas but they are bit far from central station (3-4 miles) and not sure there is good rental demand there. I saw few 3 bed houses in Whitehouse, Shenley Church and Broughton are advertised for above £1600. pcm.

This area has the highest crime rate in Milton Keynes. Your much less likley to get good quality working Tennants who will look after the property - and more importantly pay the rent. Selling it again will likley be hard and could be without profit.
It's slumlord only territory these days. Good luck, you will need it.

Shenley Church and Broughton are much better areas than Oldbrook. The only way you'll get £1600 pcm on Oldbrook is if the tenants are getting their rent paid with UC. Oldbrook's being going downhill for years - I wouldn't live there if you paid me.

Don't buy if you haven't done your research.

Shenley Church End is one of the most desirable places to live in MK - rents will be higher but so will purchase prices.
It has an excellent secondary school.

Oldbrook is a completely different proposition. The housing stock is different, particularly the town houses....if you are looking at one of the older style houses (which if it's the one on right move it is an old style). Your rental income will be less, but the purchase price is lower.

Are you expecting to make money from the rental or the sale? If the latter which houses have appreciated most in value over the last few years? Which houses sell more easily?

I lived briefly in Oldbrook about 18 years ago and even then it was on the edge of not being great. I was there for a 6 month work placement so rented a little house but it never felt like a place where you'd happily stroll to the shop and feel safe.

There are quite a few big employers in MK including the HQs of a number of big children's charities. If you're set on BTL, you'd be better finding a different area and advertising around the charities. Some of them have people from overseas working there on long-term work placements etc.

I've found having a property nearish to a hospital is good too. MK has quite a big one. Better areas in MK aren't hard to find.

@dushanmak

Im not sure your sums really work. How much money do you have to invest? You are setting up a company but you don't know MK. How much is the mortgage repayment? Who is managing the property and finding the tenants? Where else could you invest your money without the need for a mortgage? We've come out of property for rent. We get more from investing it. With Labour looking at no fault eviction you run the risk of not getting the property back. Rental properties are best owned by professional bigger companies. Not amateurs. It's too much effort!

Thanks @Mumdiva99
My expectation is to sell the house after about 15 years later. During this time I let it and expect to make small profit. When looking at replies from many of here Oldbrook seems not a good fit for my purpose. I saw "Shenley Church End" property appreciation is high in past 5 years and so rent. "Shenley Church End" or Broughton seems good option.

@dushanmak ’I saw "Shenley Church End" property appreciation is high in past 5 years and so rent. "Shenley Church End" or Broughton seems good option.’
I don’t think you know what you are talking about. Property appreciated because of very, very cheap debt and money printing. That’s stopped, and property prices will revert to their mean over a period of time. Go and join some landlord forums and Facebook groups. Most of the talk is getting out of BTL, not getting into it.
My advise is put your money into ISA’s and wait 5 years to see what happens. Labour may well shake things up.

On your hypothetical purchase price of 325, less your deposit ( but don’t forget your costs to get the place rentable and comply with the law ), what was the mortgage % rate and repayments?

Thanks all for your valuable inputs. I need to rethink this BTL business with the new Renters reform bill. Thanks @TizerorFizz for this point. There are several grounds though you can take property back. Example if you are selling the property. I already discussed tax side of this with a tax adviser and have an idea about other costs involve. However being an armature to this BTL world, I need to do more research. I like investing in BLT property in Mk with it's potentials.

Can I ask are you originally from China ?

@DrySherry What difference does that make?

I'm interested in translation apps. I think the op might be using one of the ones that I have been looking into. It has some particular characteristics. If the op prefers not to respond that's understandable.