While there certainly are advantages to investing in London real estate, there is also much to consider to make sure that you are making the right choice. London has long been seen as the premier place to be to invest in real estate. This is true of both the commercial and residential properties. If you are considering investing in London real estate, you want to do it with confidence. There are plenty of things that can go wrong when investing so you want to be sure that you are taking precautions now to minimize any problems that may arise in the future.
One of the first steps that you need to take when thinking of starting an investment in London properties is the tax factor. This applies whether you are a residential or a commercial property investor. The stamp duty tax that you will have to pay is on the purchase and also on the rental of your properties. For the residential investors, this can be a substantial amount which can increase your capital expenses considerably. However, if you plan to stay in London for at least several years, you will be able to use this amount as an investment in your future. Visit here for more information about london property investment
Another important consideration when you think about starting an investment in London real estate is the weather. The high cost of living in London can make many people opt to rent rather than buy, but there is no reason why you cannot invest in London property even during the winter months. Even during the most mild winters, the heating in the city is enough to keep you comfortable. You don’t even have to worry about ice dams when you invest in London property because the city has some of the best heating systems in the world.
The high demand for London property investments has given birth to some of the best yield cities like Liverpool and Oxford. These cities enjoy good yields even during the worst seasons because the demand for homes is always high, resulting in more investment opportunities. Both of these cities have suffered heavy declines in house prices, but the yields have still been very high.
Even when the interest rates are low, you should still consider investing in the London property market because it offers higher yields. In the past few years, there have been many ups and downs in the economy, but the overall capital growth has been strong. As a result, the yield on your investment has not declined at all, even during the recession period. Many people blame the slow economic growth on the Federal Reserve, but there is no doubt that the London property market has played a huge role. Even if the banking problems get solved in the near future, there will always be a need for investment capital in the UK. In fact, the banking system is in a constant state of flux, which is one of the main reasons why there are so many investment opportunities in the country.
Many of the large commercial properties in London such as the Canary Wharf complexes have seen sharp rises in rental yields. These properties are perfect for investors who want to take advantage of the London rental yields. For example, the apartment complex saw an almost ten percent increase in annual rental yields for the last couple of years. If you were able to purchase apartments in Canary Wharf, you would immediately see a rise in your investment portfolio, and thus, increase your income.