Investment in London property: crowdfunding & investment guide
What do you need to know before you buy real estate in London?
London is a wonderful place to visit with its many sights and stores. Thousands of tourists from all over the world visit London every year to see what it has to bring. There are several reasons why London is such an expensive place to stay or visit. It is officially ranked 13 out of 338 countries in the world for being the most expensive place to reside in. It is currently 15% cheaper to live in Paris and 16% cheaper to live in Singapore than it is to live in London. But why is it this way? Below are some of the reasons why living outside the capital is cheaper:
- It is the world’s financial capital
- Many large companies have their headquarters in London.
- London is a great place to work
- London has rich history and culture
- People are buying overpriced products
London is probably one of the most expensive places to live relative to the United Kingdom and the rest of the world. Our study has shown that, because of the cost of living in London, many people find themselves in debt and frequently have to resort to short-term loans to cover bills. However, there are other good aspects about living in London, such as better incomes and all the stores you may like to be close to; these factors make it a common place to live in and a wishlist for many people wanting to invest in real estate. It is also popular with businessmen because many companies have their offices there and it is the financial center of the world.
Can foreigners buy property in London?
Yes, you can buy real estate in the UK as a foreigner, even if you don’t live in the UK and London.
That said, buying property in the UK as a foreigner is easier if you are a cash purchaser – i.e. you don’t need to apply for a mortgage or additional loan, as it may be difficult to apply for such a mortgage.
Therefore, if you are looking to buy a home, it is vital that you have a full understanding of the UK property market and that you have access to funds.
It is also important to remember that while the pound is still relatively cheap, property prices in London are still relatively high, depending on the area.
However, if you can afford to buy a home straight away, rental yield levels can be high, while property prices tend to rise.
It is not yet fully understood how the United Kingdom’s departure from the EU would impact foreign buyers of London property, or house prices in general, and we are also aware that the United Kingdom Government plans to introduce additional tax on foreigners buying property in the United Kingdom.
Prices of London properties
Recent national and local press reports – especially post-Brexit – have led us to believe that property prices in London are dropping. This is simply not the case. In fact, according to the actual selling prices recorded in the United Kingdom Land Registry, the average house price in London has decreased during just one month in the last year.
Given this clear evidence, the investor’s attitude has been affected by reports claiming that London’s house prices have been slashed since the vote on Brexit. We’re not going to go through the specifics of the unedifying misinformation found in that story.
The best ways to buy a home in London
There is no doubt that London is expensive. The price of renting a two-bed flat for a month will normally reach the north of a grand, and prices in upscale areas such as Chelsea can reach an astounding £2500 a month. Costs like this have regularly placed London high on the list of the most expensive cities in the world to live in.
Nevertheless, the thought of living in London will not turned off a lot of people, despite prices. The fast-paced society, job market and multiculturalism make London an ideal place for a family and a career. And not all of London’s housing prices are equal to buying a second hand car every month. London is a large city, with places and markets going to match everyone’s budget. These are the easiest places to obtain property in London: Bexley, Havering, Walton, Bromley, Enfield, Redbridge and Croydon.
Long-term investment in real estate in London
For long-term investors, London’s investments are less unpredictable than the stock market, deliver great income returns, and raise capital gains in good times and smaller and less frequent falls in value in bad times.
And, in response to the question, “Because the London market is slowing down in particular, is property still the safest investment?”, we’ve got to say – yeah, investing in London property is always the smartest thing you might do.