Why properties in London

  • BTL (Buy to Let) yield of 5-10%
  • Property Capital Appreciation in London increased by an average of 14%. Year ending 2014
  • 7 years for the property to double up
  • The number of new applications for purchase mortgages rose by 19% in the last year and by 59% year-on-year as mortgage interest rates have fallen further, according to the Mortgage Advice Bureau (MAB).
  • London is becoming the hub for all international investors from China, Malaysia, Singapore, Russia and the Middle East.
  • Property Finder has reported a substantial rise in investors looking to buy and has witnessed a 54% rise in investment enquiries compared to last year.
 
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There is always a contingency & exit plan

You will never lose with properties regardless of whether the market is up or down. If prices were to increase you would gain more capital. If prices were to freeze you would achieve more rent. Prices never go down! The London property market is more stable than other countries where rent and capital value decrease at the same time.

 

Value of Money

Each year the price of goods and services increases by the inflation rate. In real terms, money is devaluing at the same rate as goods and services are increasing. So for example, £100 today will not buy you the same amount of goods and services it would have done a few years ago. This can work in your favour because your mortgage is taken out at today’s price, while each year your salary and rental income increases. WHICH MEANS: property values should increase over time while mortgage values decrease in real terms.

 

Rentals or capital growth statistics

- 14% yearly capital increase.

- In times when capital growth is slow or frozen there is a lack of activity from first time buyers and an increase in rental demand and so subsequent rental income rises.

- Property investment can be tailored for a long or short term investment depending on the investor’s objectives.

- The lack of housing in the UK combined with a growing population will ensure healthy capital growth.

- Britain is heading for a property shortage of more than a million homes by 2022 unless the current rate of construction is dramatically increased, according to reports from the Joseph Rowntree Foundation (JRF).

 

Rents are inching up to new record levels across England and Wales

According to the latest Buy-to-Let Index from LSL. Annually, this leaves rents 1.9% higher than last year and at a new all-time high.

 

UK house prices

Estate agent Savills has released its five-year forecast of property price growth across Britain from lowest to highest and expects prices to keep increasing across different regions.