Buying London Property Is A Great Investment
Most investors have been told that location is the most important factor when it comes to purchasing London property. This is not entirely true.
Location will have its effect, but timing of purchase and quality are crucial when it comes to assessing a worthwhile investment. Later versions of the Property Update will deal with these topics in detail. Here we will focus on location and discuss the advantages of avoiding “blue chip.”
Knightsbridge is one location that UK investors are interested in. South Kensington is another. Many people believe that quality tenants are drawn to these areas and they will not lose their value. A prime location will tend to bring desirable tenants in but it will be just as susceptible to a loss of value when the economy is not doing well. In general, people will want to live in the best places, so demand should stay high with a “blue chip.”
You cannot judge how good a tenant will be by how much they are willing to pay for rent. Setting a high rental rate will not necessarily mean the tenant who moves in will be dependable. Someone who pays a lower monthly amount is just as likely to pay the rent on time as someone who can afford an expensive place to live. Locating and keeping good tenants will be important if you want to see a positive return on your investment.
Finding someplace that is slated for growth is the best strategy. Something interesting needs to be happening there that people want to get in on. If a previously unsupported location is scheduled to build a new tube station, you can expect the area to become more popular. A good transport system is something that people want to see in their neighborhoods. A prime place to look for investment opportunities is somewhere where a large construction project will result in more restaurants, services and shopping centers.
The condition of the environment will determine the quality of tenant you are able to attract. You should be more interested in trying to figure out what it will be like when you are ready to sell your asset. If you buy a “blue chip, ” the value will increase in proportion to the rest of the market. By purchasing something in an area that is undergoing improvement, the difference in price compared to the “blue chip” location will be slimmer and your profit will be higher when you sell.
Purchasing in “blue chip” territory is an acceptable investment technique but there is money to be made for anyone who is willing to get back to the basics and eliminate emotion from the equation. Making an investment in a geographical location that is scheduled for improvement can be very lucrative.
Get inside info on how to pick the best london property now in our comprehensive guide to top property investment in the UK.
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