Investing in London property is a lucrative way to generate income for your future. But, what are the best tips for investing in London property? If you're not sure where to start or how to go about it, this post is for you! Here are some of the top secrets that will help you invest wisely.
Buying in good locations
Buying property in areas that are close to quality services, offices, schools and shopping centers are the keys to success. London has plenty of neighbourhoods where the property prices are cheap.
When it comes to buying property, London property prices have been on the rise for the last decade or so. Prices in the capital have gone up over the last 12 months, and you'll be hard pressed to find anything under a million pounds. As such, many buyers are looking to buy in the centre of London where the property market is booming.
Yet, finding the right property can be hard work. You need to be on the lookout for properties that are on the market for a variety of different reasons. With so much choice on the market, it's not easy to know where to start. Here's what I recommend:
Do some research
You have to make sure that you do your research. Many investors have invested in London property for many years and they have had different experiences to share with others.
The future of London property is certainly bright. Take the Shard for example. The building is the tallest building in Western Europe and it's more than 90% occupied. The selling price is £850,000 per floor.
Although the Shard may not be within your budget, there are plenty of other properties in London that are worth the investment. The most popular? According to Zoopla, that title goes to flats in Hammersmith. The average property in this area is £456,000, which is among the most expensive flats in London.
There are various other areas, such as Holborn and Waterloo, which are popular with investors. You could always buy property in a different city, like Birmingham or Manchester. You'd have the advantage of getting to keep the capital city.
In many ways, there are as many ways to invest in London property as there are buyers. Some take the safe option by investing in flats that have been recently built. But you'll find the competition is fierce, and prices are quite high.
Of course, you could invest in one of the over 3 million 'flat shares' in London that have been left empty by the owners. This is great if you want to make use of your surplus space. You will have full use of the kitchen, sitting room and bathroom. But it's unlikely to ever appreciate in value and may not make you a very generous rental income.
Get your fingers into the deal
Another way to invest in property is by buying freeholds, paying as you go. These are also a relatively simple way of investing in London property.
1. Find the best properties first – the 8 most important steps
So, you have decided to start investing in property in London. But what does that mean exactly? How do you even begin to pick the right properties? To begin with, the answer is that you need to be in the know.
The reason is that you have to know as much as you can about all the property for sale. London is a massive place and property for sale is spread out all over it. In fact, if you're going to choose a property to invest in, it needs to be in London. So, you need to know where all the good property is.
Here are the eight most important things you need to do before you choose a property to buy in London:
Check out the area you want to invest in – A good property to invest in is located in the best locations.
We know that, it is difficult to know where to start investing in property in London. To help, I have provided 8 questions that will help you narrow down the property to buy and what questions to ask before buying a property in London.
How much will you be able to raise the loan?
This is the most important question that you should ask yourself. Always go for the lowest interest mortgage loan. This will guarantee that you will never have to sell the property or use up all the money for the repayments. You will be able to get maximum interest for the loan amount.
What will be the maximum loan amount that you can raise from the bank for this property?
It is important to get the maximum loan amount you can raise from the bank. So, it is necessary to be clear on this.
Renovating your property isn't as hard as you might think. Here are a few ways you can make it easier:
Getting your home insured
This is the single most important tip for investing in London property. With just £500, you can get your house insured.
If you haven't already, you'll also want to get all your bills for your property and contact details. This is a good way to make sure the landlord is getting paid on time and avoiding any nasty surprises.
Getting your application in
The process of applying for a mortgage is stressful and you will need to be confident in your ability to pay the mortgage off. But, before you get to the point where you apply, you need to know that you can afford your mortgage.
Now, I'm not saying that you need to be making £120,000 or more.
