London Property Investment For A Steady Income And Profit

Property purchase is a capital investment. Therefore, it takes away a sizeable amount of your life’s savings. On the flip side, an investment on property generates a good return both in the short-run as well as in the long-run. Having said that, we mean, you can generate an income by letting out the property and at the same time, the value of the property keeps appreciating over the time. According to an estimate, your property investment can generate 8-10% returns annually. Therefore, London property investment can be construed as a good opportunity to secure your present and the future.

The 2016 Brexit poll result, the increased stamp duty, and a higher rate of duty on the second homes have a cumulative bearing on the London property market. The combined effect has slowed down the growth of the property market in London. As a result, the London property price nosedived to 6.9% in October 2016 from 9.3% in June. However, 2017 prediction on the London property price stands at 1-3% lower than the last year. From the viewpoint of a developer and a property seller, the market is gloomy. But, this sluggish property market has actually thrown open a golden opportunity to the investor community.

People who are not seeking to sell a property anytime soon can actually take advantage of the London property investment in 2017. But, to maximise the return on your property, you must follow certain basic rules such as the following.

• Choosing the location: Investing in London properties can fetch good returns in the short-term and long-term provided you have chosen the location carefully. Having said that, we mean, price growth on all properties are not uniform. Price escalation of the London properties varies to a great extent based on the area. For instance, a study on the property pricing structure and its future prospect in the City of London reveals that pricing of the properties based at Westminster and Kensington and Chelsea will grow by 25.6% while the same at Hammersmith and Fulham will be 23.7%. All those put together indicates that your investment in London property will bring in a good return based on the area you have chosen for investment.      

• Identifying the property: You have a budget while looking for good properties to invest in London. This, in other words, means not every property you can buy in London. Hence, it is important to identify a bunch of good properties at the first place well within your target price. Here, you will by default get three options to choose from such as new property, renovated property, and the old property that needs renovation. Based on the price of a property vis-a-vis the budget you have and the purpose of investment, identifying a property in advance can give you an edge in London property investment.

Besides, areas included in the plan for development will be potential for investing. For instance, areas beginning from London Bridge to the Isle of Dogs and Greenwich Peninsula have been included in the “City in the East” masterplan.