What type of property to buy house or flat?

[amanda.1982]

My partner and want to return to London to buy an investment property with the view to live in it one day. We would like as much capital growth as possible. We are looking to spend around 200,000.

We are unsure wether we should buy a 2 bed flat in North West london in say colindale for example probably for 200 thousand it would be a flat in a converted house or above a shop or do we go out to east london nearing or in say Barking where property is cheaper and buy a nice looking 3 bed house with garden for the same price.
I feel a house with garden would go up more in value but my partner thinks a flat in Colindale would go up more in value as its closer to town.

Any help would be greatly appreciated and and by the way neither of us are worried which area we will end up living in.
Thanks in advanced

[Velvetee]

It's nicer to have a house with a garden and space, if you're wanting to live there yourself. Although you may find it harder to let a house, unless you are letting individual rooms, maybe to students or other house sharers.

In my experience, one or two bedroom flats tend to let pretty quickly. People aren't buying property at the moment, but opting to rent until the market improves.

If you purchase a flat, then it's probably better to go for a share of freehold, so no outrageous service charges, just a mutually agreeed maintenance fund. (Also, no ground rent). You just have to hope you have cooperative neighbours who care about the upkeep of the property as much as you do.

I wouldn't reccommend a new build property, as I've learnt to my detriment, these properties are often overvalued by the developer and a year or two later, you may find the value has reduced by 10% or more, plus the service charges and ground rents are astronomical.

[Jenga]

Go for a freehold house not a flat. I didn't realise you could still buy a house for �200,00 in London any more!

What is the area of Barking like?

[Velvetee]

No, you couldn't buy a house in London for �200K anymore. We did buy a 3 bedroom house in the London Borough of Croydon for �250K last year.

[caleblyons]

I would say flat because you will generally get more of your money with a flat. Security can be better depending on the location and of course a house will usually require more maintenance. Whereas, in a flat, you have to only contribute to the upkeep of the whole building and communal areas through service charge.

However if you are looking to buy new build home or flat you can find some exclusive deals on the properties at http://www.plazaestates.co.uk/ which makes your task lot easier than you aspect.