Investment in London property: crowdfunding & investment guide
What do you need to know before buying real estate in London?
London is an amazing place to visit with its many attractions and shops a plenty. Thousands of people from around the world visit London each year to see what it has to offer. There are many reasons why London is such an expensive place to live or visit. It currently comes in at number 13 out of 338 countries in the world for being the most expensive place to live. It is presently 15% cheaper to live in Paris and 16% cheaper to live in Singapore than it is to live in London. But why is this? Below are some reasons why it is cheaper to live outside the capital:
- London is the financial capital of the world
- Many big businesses have headquarters in London
- London is a good place to work
- London has a diverse history and culture
- People buy the overpriced products
London is definitely one of the most expensive places to live compared to counties in the UK and the rest of the world. Our research has shown that due to the cost of living in London, many people find themselves in debt and often have to turn to short term loans to pay bills. However, there are many positives about living in London such as wages being higher and all of the shops you could need being close by; these positives make it a popular location to live in. It is also popular with business men and women as many businesses have their headquarters there and it is the financial capital of the world.
Can foreigners buy property in London?
Yes, as a foreigner you can buy property in the UK, even if you do not live in the UK and London.
That said, buying property in the UK as a foreigner is easier if you are a cash buyer – i.e. do not need to apply for a mortgage or additional borrowing as it may be difficult to apply for such a mortgage.
Therefore, if you are looking to buy a property, it is important that you have a full understanding of the UK property market and have access to funds.
It is also important to remember that, while the pound is currently relatively cheap, property prices in the London are still comparatively high, depending on the area.
However, if you can afford to buy a property outright, yields from rental income can be high, while property prices tend to rise.
It is not yet known quite how Brexit (the UK’s exit from the EU) will affect overseas buyers of London property, or house prices in general, and we are also aware that the UK Government has plans to introduce an additional tax for foreigners buying property in the UK.
If you are thinking of buying property in the London, we can arrange for a free consultation so you can establish whether it is a sensible investment for you and potentially help you find the right property as well.
London property prices
Recent national and local press headlines – particularly post-Brexit – have lead us to believe that London property prices are falling. This simply isn’t the case. In fact, according to actual sold prices as recorded on the UK Land Registry, over the last year there has only been one month in which the average house price in London has decreased.
Despite this real evidence, investor mentality has been swayed by headlines such as London house prices slashed after Brexit vote. We won’t go into the details of the unedifying misinformation contained within that article here (you can read my analysis in my article “Why property investors should never believe all they read in the newspaper”), but, needless to say, we’ve been deluged by calls from concerned property investors because of this type of sensationalist reporting.
Cheapest Places to buy a property in London
There’s no doubt about it. London is expensive. The price of renting a two bed flat for a month will normally reach north of a grand, and prices in upmarket areas such as Chelsea can get to a staggering £2,500 a month. It’s costs like this that consistently put London high up on the list the world’s most expensive cities to live in.
Nevertheless, those thinking of moving to London should not be put off by the price of accommodation. Its fast-paced culture, job market and diversity make London an excellent city to bring up a family and boost a career. And not all London housing costs the equivalent of buying a second hand Ford Fiesta every month. London is a huge city, with areas and prices ranging to suit anybody’s budget. Here are the cheapest places to live in London: Bexley, Havering, Sutton, Bromley, Enfield, Redbridge & Croydon.
Investment in London real estate for the long term
For long-term investors, London property is less volatile than the stock market, produces as good as or better income yield, and higher capital growth in the good times and lower and less frequent falls in value in the poor times.
So, in answer to the question “Given that the London market in particular is slowing, is property still the best investment?” We have to answer “Yes, sure, real estate investment in London property is still the best thing you could do”.