Month: June 2019

Property Investment In London

Does London Still Represent An Opportunity For Property Investors In 2019?

Traditionally London has been a safe haven for property investors looking for an ironclad investment in the United Kingdom. The property prices in the city seem to be self-correcting – even when the property in the rest of the United Kingdom seems to be taking a pummeling London sales on seeming above all the fuss and bother. That is not to say that there have not been highs and lows since the days of the financial crisis – but prices in the city and the areas immediately surrounding its core seem to always stage a comeback – and sail serenely on. However, the wobbles of Brexit aside, there is still a pretty mixed bag when it comes to the attractiveness of London as a property investment as we enter the final six months of 2019.

The average house prices in London continue to fall – but there are hotspots within the city that are bucking the trend. Many of these hotspots are in the city proper. The powerhouse of finance and services that keeps London ticking over as a global financial hub. However – statistics can be misleading. According to some industry pundits, the reason that central city properties seem to be almost immune to the general malaise that is facing London property may be a simple matter of numbers and valuations. There are fewer properties sold in the area – and those that are sold boast sky-high purchase prices. the result is an average sale price and returns on investment that may not provide the most accurate picture regarding the attractiveness of London as a property investment destination.

Where are the best places to invest in UK property in 2019?

However, even the prime central zone of London where most foreign investment takes place has taken a hammering since the last reporting period. Homes in places like Chelsea and Kensington (in the central zone) are down by nearly 15%. The culprit, to no one’s surprise, is the uncertainty caused by the ongoing Brexit muddle. However, this has had another knock-on effect. Local consumers are wary of property investment at the moment due to worries over the strength of the domestic economy.

However, even taking into account the low numbers of properties that are sold in the City of London borough it remains a shining beacon. Property prices in this area have not only bucked the trend – they are set to shatter the ceiling. House prices here have risen by an astounding 16.2% over the last 12 months – and this in the face of Brexit and increased stamp duties. Yet another example of the resilience of property in this part of the city.

However, the falling prices in the rest of London are not all gloom and doom for everyone. First-time house buyers may soon start to realise that the lower prices present an incredible opportunity. The same might be said for savvy property investors who may come to the conclusion that increasingly tough economic times may bolster the rental market as people hold off on outright purchase. The latest news around the London market may just be a cloud with a silver lining for some investors.

How To Profit From Property Investment

How To Profit The Most From Property Investment

As profit is the main scope of investing in property, you have to ensure that all your investments have a good potential to earn you money in the long run. Let’s see what are the three main ways you can profit from property investment.

An increase in the market value of property is the first way to profit from your investment. When targeting this type of profit, you must seek for properties that are in areas that are currently under development. By the time all infrastructure works and all other projects will be completed, the market value of your property will increase. Another good option is to choose run down properties in dire need for renovation. By doing these works, you can significantly increase the value of the property. However, you must ensure that the total cost of the renovation works won’t exceed the additional value of the property.

Rental income is another way to profit from property assets. You purchase a property in a highly sough-after area, you lease it out to tenants, and you score a nice profit collecting the rent. This method is much slower than the previously mentioned one, as you’d need to wait for a very long while to break even. Nonetheless, you can always decide to list the property for sale again and keep the profits made from the lease.

The third way to earn from your property investment is to collect profits generated from business activity that relies on the real estate. This is also a long-term profit opportunity, so keep this in mind when you make your decision to invest in this type of assets.

You should be very clear about the way you intend to profit from a certain investment before you actually take the purchasing decision. Forecasts and in-depth analyses of the market can help you make the right choice. This post was submitted by Sterling Woodrow.