07 Feb 6 Things to Know Before Investing in the London Property Market
Investing in a property in London is has been a popular and profitable move for investors, and the Capital’s property market is ever-evolving to adapt to increasing demand. Here are 10 things you need to know before investing in the London property market.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Buy to let mortgages are not regulated by the Financial Conduct Authority.
London is Ever Changing:
The residential landscape rapidly evolves and expands as pockets of London benefit from redevelopment and regeneration. Upgraded transport links, a top performing local school or the opening of a trendy new restaurant can rapidly increase the demand and value of property in the local area. Knowing what to look for can help you invest at the right time, before everybody else does!
Legal Costs:
To purchase property within the UK, you need to engage a property solicitor or conveyancer to not only support you through the process and protect your interests, but ensure that all legal formalities are complied with. Other fees include Survey Fees, Application Fees, and Stamp Duty Land Tax which can vary between 1% and 15% of the property value.
Add Value to Your Property:
There are many ways to make your property stand out in the market and increase in value, whether it be a new coat of paint, a modern kitchen refit, or a loft extension – adding value to your London property can be something to enjoy and a good investment.
Home Sweet Home:
If you’ve bought a property that you plan on living in, it’s important to see it as a home first and an investment second. Living in a property over the long term will mean you are less likely to be effected by fluctuations and changes in the market, though the London property market has shown consistent demand and resilience over several previous decades in comparison to the country-wide property market. If you do plan on selling the property within a couple of years, it’s worth tracking the value of properties in the area to ensure you sell at the right time.
Property Wish List:
When investing in a property in London, it’s important to have a clear idea between what the property must have, and what would be a nice additional extra. For example, is it important that the property has parking – or is it within a short walk from transport? Is a garden vital, or would a small balcony or courtyard be more than enough? Doing your research into the area to understand what aspects add value to a property is vital in making a good investment.
Search for the Best Mortgage Deals
It’s important to do your research to make sure that you’ve got the right mortgage to suit your personal and financial circumstances. Seeking advice from a mortgage broker can make the process much easier, plus having a professional evaluate your mortgage every few years could help you see financial benefit over the long term.
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