Searching for buy-to-let property for sale in London makes excellent financial sense; particularly if you look in the right area. The city offers great potential for landlords, with a huge number of tenants seeking homes, and fantastic capital growth opportunities too.
If you’re looking for investment properties in London but aren’t sure where to start, here’s a guide to help you.
Identify the Right Place
London property prices are famously expensive, with the average house now costing over £500,000. However, look in the right area and it’s perfectly possible to find a great investment property at a lower cost, especially if you explore other options such as buying a house at auction. Key upcoming areas include: Newham, Woolwich, East Croydon, Bromley, Farringdon, Enfield and Leyton. Ask a property investment agent for more recommendations.
Find Out What You Can Afford
Once you’ve identified a good area, it’s time to number crunch. Ascertain exactly what you can afford to invest, whilst taking into account the element of risk. Make sure you’re never left uncomfortably out of pocket as a result of purchasing a buy-to-let property for sale.
If you’re planning to finance your purchase with a mortgage, you’ll need to get talking to mortgage lenders and find out what you’re able to borrow. The size of your deposit will affect the mortgage rate, so the more equity you’re able to put into the purchase, the better. Remember to factor in other costs such as stamp duty, fees and insurance.
Viewing (With a Critical Eye)
When viewing investment properties in London, always bear in mind that you’re not searching for a home – you’re seeking a viable business investment. In short, think with your head, not your heart. Look for properties that not only offer a decent rental yield, but also the chance to generate profit from capital growth.
You’ll also need to work out how much money will be needed to bring the house or flat to standard. When viewing, ask the right questions. For example, how old is the boiler? Is there any damp in the house? Has the property undergone any improvements in recent years? What is the area like? Find out as much information as possible before committing.
Explore Your Options
There are more ways to buy investment properties in the UK than simply browsing in an estate agent’s window. Property investment agents have plenty of competitively priced properties on their books, which aren’t available to the general public. Likewise, house auctions are a great place to pick up a bargain property, providing you’ve got your finances in place.
The Buy2Let Shop in Bromley
If you’re considering investing in property in London (or anywhere else in the UK), talk to The Buy2Let Shop. We’re a team of expert property investment agents, and we’re here to help you find the ideal house or apartment, designed to generate a monthly income and good ROI over time.