Why Investors In London Property ALMOST Always Make Money

London-Excel-HotelPeople are starting to ask me, can I still make money from London property? To which my answer is this – investors who know the best areas to invest will almost certainly make a profit as well as being able to EXIT with a profit .

The UK might still be flirting with recession, meaning you are unlikely to find attractive returns from investing in anything other than student properties and care homes outside London. When you move closer to the capital it is an entirely different story…

 

London is a property market that operates in a different universe to the rest of the UK. Like a Duracell battery it just keeps its energy even when everything around it has ground to a halt.

When we look at micro markets, London defies even the harshest of economic conditions and the value of property and rental costs just keeps on climbing regardless.

It is no secret that London property has attracted the attention of investors from all over the world in 2012, some as a result of the Olympics and others looking for a safe haven for their money.

Increased interest from foreign investors in prime London property, include a large number of investors from Russia and China and, more recently, mainland Europe. This has helped put property prices up 20% since 2007 – even when virtually every other part of the UK was posting a decline.

Rents too have continued to rise and currently stand at 27% higher on average than they were in 2009.

The only drawback for investors who opt for the London market are the relatively high prices you will pay for properties close to the centre and commuter belts. If that is not a problem then London property really is a gold medal winning investment opportunity.

There of course alternative ways to gain a foothold in the market by investing in hotel rooms or even London student accommodation. These are typically low capital outlay and allow investors to benefit from a high yielding, hands free investment.

Students will typically rent for 12 months at a time and you can expect to increase the rent 5% a year. If student property is not for you, then there are always hotel rooms that can generate 7-10% net yields per annum in London.

So as I said at the beginning, investors almost always make money from London property because it offers two things every a property investor needs – a secure investment and a solid exit strategy.

Is there a better place to invest in the world than London? Please leave your comments below:

 

Kind regards

 

Brett Tudor
Property Expert

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