Any London (UK) property investors here ?

Question

I am wondering if there are any London RE investors who find themselves in the same boat as me. I have been mulling over selling my property that i purchased in 2008 on a tracker mortgage. It's enjoyed 10 years of pretty good appreciation but i feel that it's kind of reached the end of the road. Rising interest rates, unfriendly non resident landlord laws and mortgages are all headwinds i'm not sure i want to be dealing with anymore. Not to mention the 500 lbs gorilla in the room - Brexit.

Since i've owned the property for more than 5 years i don't believe i am subject to capital gains tax for non residents ( could be wrong though) so that is at least a bonus for me should i wish to get my money out of the UK market.

Anyone else pondering this ? interested to know and hear what other London RE investors are thinking....

Sebastien Hitier · Answer

Hi Brett,

You had a nice yield compression on that property.

Interestingly, your expense yield went from 1.3% to 3.1%, so it more than doubled while gross yield went down as the price went up.

I reach for higher yields if this is just an investment. If you love the place and might want to live there, that's a different question.

Brett Chemaly · Answer

@Sebastien Hitier

Forgot to add gross in 2008 was 6.1% and today it's 4.6

Brett Chemaly · Answer

@Sebastien Hitier

Thanks for your response, was beginning to wonder if this forum was strictly US RE investors :)

Yes, the property has appreciated nicely.

Net in 2008 was 4.78% and today it's around 1.5%

Sebastien Hitier · Answer

You did very well to buy in 2008 and should have enjoyed great appreciation. Economic growth might indeed be harder to come by and devaluations are probable.

2 questions to assess your opportunity cost:

• what were your gross and net rental yield in 2008?
• what are your gross and net rental yield now?

UK savings account paid 7% back in 2000.

Any London (UK) property investors here ?

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