Purchasing an investment property in London can be extremely complex and confusing, but with the right advice, it can end up being one of the best financial decisions you will ever make. The London investment property market has many elements, and you can use all of them to make your own investment as lucrative as possible.
At Prideview Properties, we know how to help you get the most out of your investment property, and here we have assembled a guide that will help you understand the importance of correct property investment.
When you are investing in a property in a major city, especially London, researching which areas are considered ‘up-and-coming’ will allow you to make the best possible long-term investment.
An ‘up-and-coming’ area is essentially an area where there is a lot of development. This could involve new properties being built, a supermarket opening or new transport links to the city centre, all of which will mean that the area will soon become more desirable for tenants.
By purchasing a property in an up-and-coming area, you will be able to pay a substantially lower price for your property, providing of course that you buy at the right time. In the long term, property prices in these areas should increase, as will your rental yield, allowing you to reap the rewards of a clever investment.
In London, areas that are considered up-and-coming include Bayswater, Dalston, Whitechapel and Clerkenwell. By seeking professional assistance when making your investment, you will be more aware of these areas and the properties that will be the most financially profitable over time.
Research, Research, Research
When it comes to property, one of the mottos you will hear the most often is ‘location, location, location’. However, when it comes to property investment, you will also need to adopt a new mantra – research, research, research!
When purchasing an investment property, it is vital that you do your own research. By making yourself more aware of the market, your property of interest and the locations you are looking at, you will have a better understanding of the investment that you are making and the potential risks involved.
Of course, by using professional assistance when making an investment, you will be made aware of the general health and prosperity of the property market, as well as what you can expect to gain in terms of rental yield and resale value. However, by conducting your own research you will have a better idea of what you can expect from your investment.
The Tenant’s Perspective
When you are viewing properties and deciding on your preferred location, it is important that you are able to see everything from the perspective of a tenant as well as an investor, as this can allow you to see how quickly your property could be leased and whether tenants would want to live there in the long term.
Firstly, you should have some idea of who your ideal tenants would be. For example, your property may be best suited to a young professional couple and not a family, or vice versa. This will help you to have some idea of what your ideal tenants would be looking for when viewing your property.
When viewing your area of interest, see what amenities would be available for your tenants and determine whether these would be appropriate or desirable for your ideal tenants. Young professionals will be interested in bars, clubs and a social atmosphere, while families will be looking for good local schools and parks. By taking the tenant’s perspective, you can ensure that your location of interest is indeed appropriate.
You must also take this into consideration when viewing your property. Consider what your tenants would be looking for and what may turn them off your property. Ensure that all necessary facilities are in your property before moving onto what is known as the ‘wow factor’; this can set your property apart from others on the market. A professional can advise you on these changes.
When investing in a property, there are certain things that are essential for you to know in order to make your investment as financially lucrative as possible. If you are considering investing in a property and you require professional advice, Prideview Properties can help you to make the right investment. For more information, contact us today by calling 0208 863 8680.