I have just purchased my fist property in Newlands Park Sydenham. Its a two bed garden flat and i had to pay top wack for it. (227.500).
The place needs work which we are doing and we hope to make a decent profit from it when we sell.
As i am new to the property ladder advice would be greatly recieved.. have i made a mistake in buying here and how long should i leave before selling.
Will the tube extension really effect the prices
Also how much of a profit is realistic?
thanks
Have i made a mistake buying in Sydenhams Newlands Park
Re: Have i made a mistake buying in Sydenhams Newlands Park
I am against this sort of thing.....SORRY
Hi jwright
I think that if you were thinking that you were going to get cash rich by buying here then you were probably being a trifle naive. House prices have been on the rise for some time and there is now debate about whether we will be seeing a price crash in the next year or two in the UK or whether prices in London will continue to steadily rise.
On the whole though, Sydenham is a more stable market as there is room for regeneration in the area, so it hasn't necessarily "topped out" yet and the good transport services will always help to keep prices bouyant.
There is plenty of debate on this website about the pro's/con's of the Bell Green development and there seems to be some doubt as to whether the tube extension will actually mean improved services to Sydenham, so you will have to make your own mind up about these issues.
But this is all by the by. The only real way to make serious money out of the housing market at the moment is to be relatively ruthless and to turn properties around quickly. There is considerable competition around between real property moguls and then there are the wannabe's - everybody seems to think they can make a quick buck out of bricks and mortar. Personally I think that property should mean "home" first and "investment" second, if at all. Really the latter should be accidental, a bonus.
So, have you made a mistake? Well property is a longer term investment. Most people use their mortgage buying power to ensure as good a living standard as possible and to ensure that their future is protected and to do that you should pay whatever is "top whack" for what you can afford. But if you wanted a quick buck, then the stock market would probably have been a better option. The actual costs surrounding buying and selling property are quite high, so you would need to take these into account when thinking about potential profits, after you have paid for the work that needs doing and add to that the disruption caused by the work....then you still have to find a buyer! How hard are you prepared to work without the guarantee of a profit?
It doesn't sound like you are enjoying living here, or I don't think you would have raised the question? Did you buy here just to make money / would you rather be living somewhere else?.....
Only you understand your motivations. Only you can decide for yourself as to whether the property was a mistake or perhaps whether your motivations were a little out of kilter.
I hope you do eventually enjoy living here, I've been here 2 years and I love it. I have really friendly neighbours, I find everything very convenient, the prices are achievable and we are about to get a good pub to boot! I couldn't fail to mention this fabulous community forum either!! I'll never get rich from the sale of my tiny little flat but I am certainly enjoying living in it in the present!
The Clown (one who rarely signs in)
I think that if you were thinking that you were going to get cash rich by buying here then you were probably being a trifle naive. House prices have been on the rise for some time and there is now debate about whether we will be seeing a price crash in the next year or two in the UK or whether prices in London will continue to steadily rise.
On the whole though, Sydenham is a more stable market as there is room for regeneration in the area, so it hasn't necessarily "topped out" yet and the good transport services will always help to keep prices bouyant.
There is plenty of debate on this website about the pro's/con's of the Bell Green development and there seems to be some doubt as to whether the tube extension will actually mean improved services to Sydenham, so you will have to make your own mind up about these issues.
But this is all by the by. The only real way to make serious money out of the housing market at the moment is to be relatively ruthless and to turn properties around quickly. There is considerable competition around between real property moguls and then there are the wannabe's - everybody seems to think they can make a quick buck out of bricks and mortar. Personally I think that property should mean "home" first and "investment" second, if at all. Really the latter should be accidental, a bonus.
So, have you made a mistake? Well property is a longer term investment. Most people use their mortgage buying power to ensure as good a living standard as possible and to ensure that their future is protected and to do that you should pay whatever is "top whack" for what you can afford. But if you wanted a quick buck, then the stock market would probably have been a better option. The actual costs surrounding buying and selling property are quite high, so you would need to take these into account when thinking about potential profits, after you have paid for the work that needs doing and add to that the disruption caused by the work....then you still have to find a buyer! How hard are you prepared to work without the guarantee of a profit?
It doesn't sound like you are enjoying living here, or I don't think you would have raised the question? Did you buy here just to make money / would you rather be living somewhere else?.....
Only you understand your motivations. Only you can decide for yourself as to whether the property was a mistake or perhaps whether your motivations were a little out of kilter.
I hope you do eventually enjoy living here, I've been here 2 years and I love it. I have really friendly neighbours, I find everything very convenient, the prices are achievable and we are about to get a good pub to boot! I couldn't fail to mention this fabulous community forum either!! I'll never get rich from the sale of my tiny little flat but I am certainly enjoying living in it in the present!
The Clown (one who rarely signs in)
Hi Clown,
Thanks for your reply,
You made a number of interesting points for me to consider. I would just like to say that i very much enjoy living here, my question about "have i made the right decision or not" was purly financial.
I have purchased this property for a number of reasons firstly like you said for a home and to stop paying someone elses mortgage through renting.
I am though also hoping to make a profit from it and to re sell fairly quickly. This is my first property i am buying so i am having to learn very quick.
Thanks again for your reply.
Thanks for your reply,
You made a number of interesting points for me to consider. I would just like to say that i very much enjoy living here, my question about "have i made the right decision or not" was purly financial.
I have purchased this property for a number of reasons firstly like you said for a home and to stop paying someone elses mortgage through renting.
I am though also hoping to make a profit from it and to re sell fairly quickly. This is my first property i am buying so i am having to learn very quick.
Thanks again for your reply.
“Have I made a mistake?” From a making money point of view, it sounds to me as if you have. I agree with Clown, the only real way to make money is to do what Sarah Beany says; turnaround properties quickly and be ruthless. That means buying cheaply and doing development that really adds value. By your own admission, you paid top whack for the flat, so you are unlikely to be able to add much value simply by developing.
Property prices in Sydenham will most probably rise and fall in line with similar properties in the rest of London. Whilst there are improvements coming to Sydenham, there are plenty of other places getting developed too. So, any rise in price of your current property will simply be wiped out by the fact that the next place you buy will be equally more expensive (plus you have to add in estate agency fees, stamp duty etc). This isn’t the case if you have bought a second home as an investment, then you can sell and pocket the increase in value of the home (after paying capital gains tax) – but it doesn’t sound like this is what you have done.
“Have I made a mistake?” From a choosing somewhere to live point of view, the answer is no. There is a lot going for Sydenham and I, like many others, enjoy living here.
Property prices in Sydenham will most probably rise and fall in line with similar properties in the rest of London. Whilst there are improvements coming to Sydenham, there are plenty of other places getting developed too. So, any rise in price of your current property will simply be wiped out by the fact that the next place you buy will be equally more expensive (plus you have to add in estate agency fees, stamp duty etc). This isn’t the case if you have bought a second home as an investment, then you can sell and pocket the increase in value of the home (after paying capital gains tax) – but it doesn’t sound like this is what you have done.
“Have I made a mistake?” From a choosing somewhere to live point of view, the answer is no. There is a lot going for Sydenham and I, like many others, enjoy living here.