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Warning
property investing is a business with many risks and
prices may up as well as down
Property Developers in London
The
need to invest in your future can be a major cause of
worry for many people. With growing disillusionment
in pensions and less job stability, the appeal of the
property market as a way of making money is obvious.
It might seem like a scary move, but even with the property
market slowing down, slow professionals think it mmay
potentially be an investment. Here are a few ideas regarding
the property market...
Where
to Invest
If you have a lot of money to invest, the potentially
safest bets may be the traditional high-end residential
areas – Belgravia, Mayfair and Knightsbridge.
If, on the other hand, you’re a prospective investor,
just starting out, you’ll need to try and identify
the next big areas of opportunity. Typically, these
areas will have a capacity for regeneration. The main
objectives of regeneration is improve the image of an
area and attract new investors. This is achieved in
a number of ways: improved housing, amenities, new jobs
and transport links; all of this will boost the local
economy.
There are a number of areas across London undergoing
improvements, among them Stratford, Dalston, Ealing
and Canary Wharf. Four regeneration hotspots of recent
times are King’s Cross, Battersea, Wembley and
Greenwich. Investors should allow time for an area to
mature, and generally view any property as a long-term
investment, although there are specific alternatives
to this, as we’ll see.
Short
or Long-term Investment Plan?
If you’re interested in a short-term investment,
buying property “off-plan” may be for you.
This means that you invest in a property early during
construction, in the hope that you’ll benefit
from capital growth once the property is ready. You
may see a return by re-selling or “flipping”
the investment just prior to completion. More serious
investors, though, will prefer to take a long-term approach
by holding onto their residential stock as part of a
larger portfolio. The professional investor will concentrate
more on capital growth than straight rental yield, so
don’t expect much of a regular monthly return
– instead view your investment as a long-term
strategy that may pay off in a big way a few years down
the line.
Financial
institutions such as Alliance & Leicester can help
you start your property development business by offering
loans
and competitive mortgage
rates for products including buy
to let mortgages and discounted variable mortgages.
Some
Buy to let mortgage are not regulated by the Financial
Services Authority. For
information regarding a mortgage on a buy to let contact
us or call 0800 781 0414 for friendly assistance.
