2012 London Olympics- lettings/opportunities/etc.

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    2012 London Olympics- lettings/opportunities/etc.

    Hello,

    I am considering buying a flat one of 300 in a new development in Bethnal Green between the city and the olympics. So the location and connections are great. The price £275k for 812ft2. Expected p.c.m. rental £1300. A flat in another development 150 metres away although with canal views and higher up went for £350k so I'm thinking that my flat represents good value for money.

    The issues;


    There are two bedrooms 17'6"x8'6" and 13'6"x5'8"
    Is the smaller bedroom going to cause a problem when letting it out?

    My building is to complete in Sep 2007. Opposite (50 metres away)another 300 flats will complete in Feb 2008 to go up 70% intermediate and 30% social rented plus some commercial units.

    Further North of that (100 metres away) 500 flats are to complete in the next three years. Is this kind of construction going to cause problems letting it out while the construction continues AND will it actually make the price of my flat drop rental and resale?


    The flat overlooks park land and is very close to regents canal, mile end park and victoria park. The park land it overlooks was a very big cemetery 125 years ago - the headstones have gone but the resting still remain. Will this affect resale?

    What do you guys think?

    I would really appreciate a response.

    Cheers!

    #2
    Cemeteries are OK next door to houses. No neighbour complaints.
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

    Comment


      #3
      Olympic effect

      The Olympic effect will improve the area and one of my top landlords is based in Walthamstowe and is currently developing in and around this area.

      New build property investment can be tricky business, new blocks do have an effect on the prices otained in an old block nearby...people desire the new and the new becomes the old very quickly, is also think that tenants do not truly value having a brand spanking new in the rent they pay...

      On the other hand you may find the new in a year or so is more, that is IF demand continues to be higher than supply and interest rates don't run away....too many questions are left unanswered in todays market so landlords must make a calculated risk before jumping into buy to let.

      Regards
      Lee

      Comment


        #4
        How further surrounding development affects your property depends upon the nature of the location. Balanced commercial, social, and residential infrastructure with appropriate transport links may add value, or a simple glut of residential units may contribute to over-supply and cause prices to stagnate.

        If land is limited and consequently development restricted, value is likely to rise. If the area is unbounded, then over-development is probable.

        Is your purchase price discounted? Bear in mind when making comparisons, it's possible the other apartment you mention may have had around 15% discounted from it's apparent price, knocking it down to £300k for a superior location, and making yours look not so much of a bargain.

        Your smaller second bedroom won't be an issue for letting, provided it has a window and room for a double bed plus minor furniture.

        Proximity to parkland (cemetary or not) and water is a big bonus, certainly if yours commands views of land which cannot be developed. If these features genuinely restrict the scope of building in the area, then that's a very positive factor in your favour.

        Your prime consideration should be whether this location will become a bustling, cosmopolitan and desirable place to live, or another ghost town of soulless and poorly performing residential units. Which do you think it will become?
        Last edited by Massive; 18-03-2007, 21:33 PM. Reason: Additional info

        Comment


          #5
          2012 Olympics - benefits for landlords

          I don't really know, but don't buy one in Westminster - there is a £20,000 fine for holiday letting (less than three months) in that borough and the Council are very active in pursuing these.

          Comment


            #6
            Originally posted by suile View Post
            I don't really know, but don't buy one in Westminster - there is a £20,000 fine for holiday letting (less than three months) in that borough and the Council are very active in pursuing these.
            A lot of big cities are introducing laws that prevent holiday lettings (New York and Paris). It's a good idea in my opinion, something needs to be done to prevent transient communities.

            Comment


              #7
              Originally posted by roryl View Post
              A lot of big cities are introducing laws that prevent holiday lettings (New York and Paris). It's a good idea in my opinion, something needs to be done to prevent transient communities.
              A very good point. There are enough hotel and hostel beds in London to accommodate all the Olympic Games visitors twice over. There is a good argument that residential acocmmodation should be for people to live in all year round, not just for landlords to make a fast buck out of.

              [Cue volley of abuse from HairyLandord ]
              'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

              Comment


                #8
                Here's an apposite item in today's 'Times' on just this topic, entitled "Londoners hoping to cash-in on Olympics by renting their homes":
                http://www.thetimes.co.uk/tto/life/p...cle2660736.ece
                JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                4. *- Contact info: click on my name (blue-highlight link).

                Comment


                  #9
                  Yes, it does. See my last post #8!
                  JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                  1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                  2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                  3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                  4. *- Contact info: click on my name (blue-highlight link).

                  Comment


                    #10
                    Thank you jeffrey.

                    Comment


                      #11
                      Posts about 'Piracy and obtaining Web information free' have been moved from this thread to http://www.landlordzone.co.uk/forums...ad.php?t=30551

                      Comment


                        #12
                        Originally posted by suile View Post
                        I don't really know, but don't buy one in Westminster - there is a £20,000 fine for holiday letting (less than three months) in that borough and the Council are very active in pursuing these.
                        Sorry hysterical analysis of Westminsters activities. If its on their doorstep, creating a nuisnance its a landlord with deep pockets and near a cafe maybe anywhere else they cannot be bothered.
                        Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

                        Comment


                          #13
                          Really ? Westminster Council carry out regular checks where I live and warn first, followed by prosecution. There have been three cases in the last couple of weeks.

                          Comment


                            #14
                            Originally posted by suile View Post
                            Really ? Westminster Council carry out regular checks where I live and warn first, followed by prosecution. There have been three cases in the last couple of weeks.
                            Not so difficult to circumvent really is it ?

                            Issue a 3 mth agreement and mutually agree not to persue T if they choose to leave early.

                            How do they differentiate between a "holiday let" and a "short term working let" ?
                            A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.
                            W.Churchill

                            Comment


                              #15
                              Originally posted by roryl View Post
                              A lot of big cities are introducing laws that prevent holiday lettings (New York and Paris). It's a good idea in my opinion, something needs to be done to prevent transient communities.
                              There is no community for the Olympics and we know they will be gone in a month too.

                              The huge financial benefits seem to outweigh the minor disadvantages in this case, but perhaps the loony left ideology that has gripped the world for the past 30 years have seeped much further into the mindsets of many people that I had thought.

                              There is a limit to how much control should be exercised in many situations, and this is one clear example.

                              Comment

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