Property is one of the four most common investment practices alongside savings, shares and bonds. In this current financial climate, where savings offer low interest rates and the stock market appears volatile - property is widely considered the most attractive investment option.
Here at Galliard Homes in 2017, we offer a great range of property investment opportunities whether it be for the Buy-to-Let investor, an owner-occupier, a luxury homeowner or first-time buyer. With almost 25 years of market-leading experience, our objective has always been to seek out the best London investment opportunities for our loyal customer base and to share our knowledge of the next up-and-coming areas. Read our 'What is Property Investment Guide' here.
What Can Property Offer Investors?
With property there are two main ways of making an investment return:
- Income producing – you can earn money by renting out the property
- Capital appreciation – there is the potential to sell for a profit if the property increases in value
Of course, there are many factors to take into consideration in order to make the maximum return on your London property investment. Galliard Homes has almost 25 years experience doing exactly that. Here we aim to share our knowledge and answer some of the important questions that you may have. If at any point you feel like you need some more information, please do not hesitate to get in touch.
Risks of Property Investment
Naturally, as with any investment opportunity, property investment comes with its own risks. Property prices, rental demand and rental yields can fluctuate, and as such, property investments must be considered as a medium to long-term investment strategy.
It is important that you plan for the future and are aware of associated costs and tax implications, especially if you are considering a Buy-to-Let investment.
If you've decided that property investment is for you, take a look at our guide on 'Steps to Take Before Visiting a Marketing Suite'.
London Property Investment for UK Investors
As a UK investor, you may have a desired area in mind but there are other factors to take into consideration as well. For instance, you could profit from an off-plan investment, especially if the area you're buying in is undergoing regeneration. We're particular seeing this in areas along the new Crossrail route, whereby areas around London (and beyond) are experiencing property price growth of up to 50%.
Browse the London property investment guide for the UK investor for further information.
London Property Investment for Overseas Investors
Financially, the UK is a highly attractive investment for overseas investors right now. The strengthening pound and weak foreign currencies, coupled with London’s ‘safe haven’ reputation in the property market, make London property an attractive investment for overseas buyers.
For further information, see the London property investment guide for the overseas investor.
Why Invest in London Property?
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!
According to Savills' five-year forecast, London property values are set to rise by 10.4%, with the greatest property growth expected to be seen around Crossrail stations. Forecasts state that houses prices along the line could continue to increase by 3.3% per year above local house price growth until the route’s launch in 2018/2019 – equivalent to an average increase of £133,000!
London benefits from a global demand for homes, but there remains a shortage of supply due to space constraints, increased population, planning delays and not enough developers able to fund and supply homes. Over the past decade London’s population has increased by around 800,000 whereas just 200,000 new homes have been built – and London’s population is expected to increase by more than 1m over the next decade. The consequence of this supply and demand imbalance thereforem means high property price growth.
London is a world-class city with huge investment appeal. Still deciding if this city is right for you? Here are 15 reasons why this unique capital deserves your attention.
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 or outside of the capital. However, London is a highly buoyant property market, and your initial investment is likely to see capital growth over a relatively short time. Other costs you will need to bear in mind include:
- Valuation and survey fees
- Legal costs plus Value Added Tax (known as VAT)
- The cost of searches and enquiries of public bodies (to check that the property you’re buying is genuine, legal and not burdened by obligations or limitations)
- Land Registry registration fees
- Stamp Duty Land Tax
- Value Added Tax (VAT)
Be aware of new Stamp Duty regulations that came into operation in April 2016, which affect Buy-to-Let investors. For full details on the changes and how you can still make a successful investment venture, read our Stamp Duty survival guide.
Key London Areas for Property Investment
Here at Galliard Homes, we have built our reputation on acquiring sites in areas where there was little or no development, but great potential. We have a proven track record in The Docklands, South Bank, The City of London and many other London locations, where we have delivered successful property investment opportunities, and our investors have experienced huge capital growth.
For further information watch our regeneration video for a short history of our regeneration successes in London over the last 25 years.
Our regeneration projects include:
- Grove Place, Royal Borough of Greenwich
- Harbour Central, Docklands
- Riverdale House, Lewisham
- Royal Gateway, Royal Docks
- Silver Works - Colindale
Take a look at the regeneration hotspots to watch this year here.
Property Investment Opportunities in East London
‘London’s centre of gravity is shifting to the east’ according to a 2014 Savills report.
An area once synonymous with unemployment, derelict docks and abandoned warehouses, East London has undergone significant regeneration over the past 30 years, transforming itself into one of the capital’s most compelling and sought-after residential addresses. With more people living East of Blackfriars Bridge than in the West and almost a third of all new London homes set to emerge east of the City, East London’s property market dominance shows no sign of slowing down, meaning great news for investors.