3 Tips On How To Invest In Property In London
If you’re thinking of buying a property in London as an investment, then this is a must-read quick guide for you.
London is regarded as one of the world’s leading financial centres, continuing to attract overseas property buyers from all over the globe — almost 40 percent of its residents are born elsewhere. The city’s cultural, social and educational opportunities motivate buyers to invest and work in the capital. Moreover, the devaluation of sterling, a low-tax Conservative government and the prospect of a “soft Brexit” all play their part in currently attracting international buyers.
So whether you are looking for an investment to generate income from rental or long-term capital growth, or buy properties that would double up as lodging for your children studying in local universities, London’s residential real-estate market offers great opportunity.
We asked an independent, sales and letting agent, John Murphy, director of City Docklands, for his top tips before buying.
1. Choose the best up-and-coming places to invest
The best price-rise potential will evidently be found in areas where gentrification is starting to abound. These areas are pretty easy to spot through their sudden surge in new boutiques, cafes, restaurants and entertainment hot spots.
Some up-and-coming corners of the capital include Canada Water, a waterfront town offering close proximity to business and leisure facilities; Royal Albert Docks, where a new Asian Business Park will be developed in the coming years; and King’s Cross, an area that has been regenerated since the mid-1990s with the terminus of the Eurostar rail service at St Pancras International and the construction of London King's Cross, a major redevelopment in the north of the area. The area is also home to many headquarters of corporations, and tech companies have also started to move there.
2. Plan for the future by picking the right furniture
Larger apartments are growing in popularity, reflecting what buyers want: more accommodation. More rooms mean more yield; it’s a fundamental fact in real-estate. But this doesn’t mean you must buy a multi-bedroom pad to see good returns. Firms like City Docklands can turn a one-bedroom apartment into a two-bedroom one.
Robust, tenant-proof furniture that will stand the test of time because the less replacements you have to make, the lower your expenditure will be. Plus, with so many properties for rent in London, it’ll be useful to have a home that stands out and standing out is not an apartment furnished similarly to the rest in the building.
3. Potentially benefit from buying property through a company
Purchases in the name of a trust or trust company are becoming an increasingly attractive option. Wherever possible, an overseas buyer should consider acquiring a UK property in the name of an offshore company. Subjects to consider include the administration and running costs of the company and the tax implications. The financing and associated security arrangements are likely to be more complex and hence costlier. But the advantage is confidentiality, as most sophisticated buyers do not want their names as owners publicly available due to security reasons. There are also tax benefits and advantages to selling the property in the future.
Of course, it is always vital to take professional advice on your London property investment vehicle.
City Docklands recently launched its Asian arm to better serve its Asian clientele, offering full management services for buy-to-let properties in London and the UK. The company currently has two Asian offices in Hong Kong and Singapore.