Guide to investing in London property
In a lot of cases, buyers choose property as an investment. With pensions and shares uncertain, for many, a property in London represents a more stable long-term prospect.
Types of investment
New builds: Favoured by international buyers, new developments are often snapped up as much as a year before they’re complete. It’s an investment in both a brand new property and what is probably a developing neighbourhood.
Buy-to-let: With a reliable tenant in place and a monthly income, a ‘buy-to-let’ property is a safe bet. In a housing market where demand exceeds supply, property owners can be reassured of quicker returns.
Development: A house or flat which needs a little work could be the perfect diamond in the rough for the more experienced investor.
Do you know how much your property is worth right now? Request a valuation.
How much will be needed as a deposit?
There’s no fixed amount, but higher deposits usually mean a more competitive mortgage rate. Typically you should have at least 10% of the property’s total value in savings.
What’s the investment potential?
This can depend on a number of factors: the location, size of property, what’s nearby, and whether the area’s undergoing regeneration.
How much should be charged?
Look at the range of rents currently being achieved in the area and adjust your own expectations accordingly.
For the best advice and options on getting finance to buy a property, speak to our mortgage broker partner.