Over the past three years, in addition to my main property letting business, I have been involved in the sourcing of below market properties in the City of London. In my opinion the time is ripe for a sophisticated property entrepreneur to put his money into a London investment property. Why? Simply because the prices of property today has gone to levels not witnessed for several years. Another reason is that many developers are giving bigger discounts just to shift properties. While capital growth has been at a standstill, what every property investor should know is that today is the time to invest in a London investment property priced below market value.
How to profit from your London investment property:
Buying a London investment property is a lucrative move since there are a growing number of people who wish to live and work in London. This means that they are constantly on the lookout for rental accommodation. By purchasing a strategically located buy to let property, you can cash in on the surge in population. When you buy a new property to let, you can benefit from higher rental potential. In addition, you can take advantage of a ten year guarantee on construction work plus you get a relatively maintenance free property.
If you choose to buy older houses to convert into an income-earner, you can consider those being sold below market value (BMV) at auction houses or those offered via property finders, like myself. Below market value properties are typically sold significantly below their market worth because of some life events such as divorce, job relocation or repossession. In such situations, homeowners are willing to part with their properties for a huge discount. By buying BMV, you can profit right from the day of purchase. When you have purchased the BMV property, you can ask for financial assistance from private investors who can help you with the renovation of the property.
What to remember before buying a London investment property
Once you have found a property best suited for your investment goals, make sure you go over the points enumerated below to ensure you are making a good investment decision. Here are some of the most important things to take into account.
Conduct research. This is the most important step in the initial stages of buying a London investment property. You can choose to do your own research. But if you do not have the time you can hire a specialist letting agent who can assist you in performing the task of checking the area and the property you are aiming to buy. Agents are able to determine what your target tenants are looking for and how much they are willing to pay. They are also a very good source of useful advice and guidance.
Determine what is best for your tenants. Check the area of the property you are looking to buy. Does it have transport, schools, shops, or restaurants? In addition to that, be able to determine if there is a need for two-bedroom houses, a garden, or certain appliances and amenities. All these are highly dependent on the market you are after.
Do not buy a property according to personal preference. Personal tastes are never to be given priority when you are looking to buy a London investment property. Keeping a business sense all throughout the process of buying a property helps to see a property from a strictly commercial point of view and provide a clear picture of the supply and demand in the market you are targeting.
Just remember though that for your property to earn income, it has to be located in a good area, it should be the type of property best suited for your targeted tenants and should be equipped and furnished with the needs of said tenants.