There are many factors to take into consideration in order to make the maximum return on your property investment. At Carter & Carter we have over 20 years of experience doing exactly that and we aim to share our knowledge and give continuous support to our investors.
When buying an investment property in the UK or Internationally you may have a desired area in mind but there are many other factors to take into consideration. For instance, you could profit from an off-plan investment, especially if the area you are buying in is undergoing regeneration and property prices are set to increase.
Why invest in the UK property market?
In recent years, London has been considered a ‘safe haven’ for property investment, and this opinion doesn’t look like it is set to change any time soon, in fact it remains its greatest asset!
London property prices are set to rise by 20%, with the greatest property growth expected to be seen around the London underground and train stations with easy access into Central London. Forecasts state that houses prices along these routes will continue to increase by 2019 and as London benefits from a global demand for homes, there is a shortage of supply due to space constraints and increased population.
Over the past decade, London’s population has increased by around 800,000 but with only 200,000 new homes being built.
London's population is expected to increase by more than 1 million over the next decade. The consequence of this supply and demand imbalance means high property price growth for many years to come.
How much will you have to spend?
The first thing you need to consider is the cost of your property and naturally, property prices in key areas of Central London are higher than elsewhere in London. However, London has a highly buoyant property market and your initial investment is likely to see capital growth over a relatively short period of time. Other costs you will need to bear in mind include:
- Valuation and survey fees
- Legal costs + VAT
- The cost of searches and enquiries of public bodies
(to check that the property you are buying is genuine, legal and not burdened by obligations or limitations)
- Land Registry registration fees
- Stamp Duty Land Tax
With property investing there are two main ways of making an investment return:
- Income producing
- Earning money by renting out the property
appreciation - Huge potential to sell for a profit as the property increases in value
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