Are you considering property investment in England’s capital? Well, London has undoubtedly a lot to offer to both homebuyers and rental property investors. It’s a cosmopolitan, dynamic city, providing bustling places for students and quiet picturesque neighborhoods for families on its outskirts. London has always been an appealing city for real estate investments due to the growing rental yield and capital gains. As long as you choose the right area to purchase a flat or house in, you’ll see an increase in property value or rental earnings. Have a look at the benefits of investing in this capital.
Rising capital returns and rents
An undeniable benefit of investing in real estate in England’s capital is the opportunity for capital growth, as well as the growing rent prices. The London housing market has seen an incredible increase in house prices over the last decade. For instance, East London is believed to be a profitable area to invest in, given the affordable prices of real estate in this part of the city. Visit this website to check out an official guide to the East End of London.
Furthermore, this part of the English capital is home to Romford and Ilford, attractive areas when it comes to rental yield. The former offers a yield of 5.46 %, whereas the latter 5.59%, higher in comparison to the other city areas. Also, the value of properties has increased by ten percent during the last four years, which is beneficial for investors looking for capital growth.
Another appealing area for investment in the capital of England is the west area. Keep in mind that boroughs like Richmond Upon Thames are incredibly pricy for investors with a limited budget, as medium-sized flats cost approximately £ 600, 000. In contrast, investors can purchase residential properties in areas such as Hillington at more affordable prices of about £240, 000 for a small–sized flat.
Moreover, South London provides lucrative opportunities as far as rental yield is concerned. Investing in real estate in Thamesmead and Croydon provides a yield of about five percent and 4.6 % respectively. Considering the upcoming regeneration of these areas, capital growth and rental prices are expected to rise even further.
Nevertheless, would-be investors are advised to be careful when selecting an area in England’s capital to invest in. Nowadays, there is a myriad of London investment consultants, experts at providing consultancy service for property investors. The success of real estate investments in this cosmopolitan city in 2021 depends on the district one opts for, based on the demand, rental yield, and potential capital gains. If you can’t make a choice on your own, an investment consultant will ensure you make the best decision
Support from the government
Another benefit of investing in real estate in the English capital is government support. In order to encourage this type of investment, the government offers incentives to prospective investors in the form of equity loans and shared ownership, especially beneficial for homebuyers.
For example, shared ownership provides homebuyers a chance to purchase a portion of their homes, at least 25% to a maximum of 75%. The rest of the value is paid in the form of rent, whose price goes down with the increase of the share.
Equity loans, on the other hand, allow homebuyers to borrow maximally forty percent of the purchase price of homes. Borrowers are exempted from paying interest on equity loans during the first five years, following which they pay interest on the total amount borrowed. Also, homebuyers have to make a deposit of at least five percent in order to use this government incentive.
Regardless of whether you invest in a home or rental property, London offers an abundance of hotspots in different areas of the city such as Tottenham Hale, Walthamstow, Barking and Dagenham, Greenwich Peninsula, Thamesmead, Croydon, London Olympia, Wembley, etc.
Additionally, Queen’s Park and Shoreditch are promising areas when considering the spike in property prices over the last couple of years. Check out the following link, https://www.stylist.co.uk/life/best-places-live-london-revealed/196218, to get familiar with the best places to live in London.
London is always a good idea for real estate investments!