London is one of the world’s most attractive property markets. Buyers and investors from across the globe snap up property in the capital, and they have been in large part responsible for driving up prices in and around the city consistently in the post-war years. The city still poses opportunities for property development, and for investments to turn a profit in both a residential and commercial context.
For those who simply want to find a property for their next move, it can be challenging to find the right place. For investors, it is even tougher. But where are the best deals hiding, and how can you take advantage of these as a property investor?
If you are approaching London looking to buy an investment property, it is essential to have a solid business plan in place. London is an expensive market to buy into, even around the outlying areas, so you need to have a firm idea of where your return is going to come from. Likewise, if you are looking to buy a home for yourself or your family in London, it pays to remember that you won’t get as much for your money as you would in other UK cities.
Buying to let, buying to hold and even buying to revote are all viable strategies, each with different time horizons for returns. There is a lot of old housing stock in London still, much of it in now up-and-coming areas. This means there are still opportunities in renovating properties for resale. In trendier parts of town, it may be better to opt for a buy to let model, depending on the demographics of the area. This may be a good way to generate a stronger yield on your property over time.
One of the most important elements of investing in London property is understanding the importance of location. Location is absolutely key to value. If Monopoly has taught us anything, it’s that the Old Kent Road is a much less desirable part of town than Mayfair. You need to know the right areas – the parts of the city that are surging forward at the time of your investment. Much of the value of London property is derived from the location, so a fundamental knowledge of the city and its relative demographics is helpful for any investor.
London can present the property investor with a number of challenges. Finding a property that works within budget, and can guarantee the right levels of return can be difficult. There is high demand for property across the city, and finding the right stock in the right areas is never as straightforward as you would think. To find the best properties to buy, you need to become more familiar with the London property market, and the relative market rates for different types of homes. This will help you make the best possible judgement about the viability of your eventual London property investment.