Location, Location, Location is the famous expression used in real estate and it is absolutely true. It is crucial to choose an investment property in the right location to ensure that the property will appreciate in value, rent out well and be attractive to future buyers if you choose to sell. As well as location there are some other very important considerations such as the market conditions, sale price and the value of the property. You need to also look at the current condition of the property and factor in any refurbishment or redevelopment costs. If the price of a property seems too good to be true then it usually is.
Locate International has an in depth knowledge of London and the UK property market. We have strong relationships with agents, developers and private vendors in many areas. We are able to offer our clients a wide range of investment properties because we search across the UK and look at a wide range of opportunities, from small scale development projects to brand new landmark developments.
New builds focus on modern day living, features and current trends making them contemporary and purpose built for today’s market. They have remarkable specifications which means in a decade or so they will still be relatively current.
New builds also come with certain guarantees so, if an issue arises, you'll be able to contact the developer to take care of it for a certain period of time. This provides peace of mind when purchasing a long-term asset.
Many landlords prefer the minimal maintenance requirements of new builds. They tend to be easy to rent and have, in some cases, very good facilities.
Off plan investing is defined as purchasing units from developers before the building is completed, sometimes well before the foundations are even laid. Whilst in a slow property market this method of investment is much less used, it is a strong tool for the property investor in times of growth.
This method of buying has been employed by a large percentage of property investors over recent years to seriously increase their net worth through property investment.
There are many advantages to buying off-plan such as being able to secure properties at below-market value for ‘bulk buying’ and to purchase the investment over a period of time rather than putting all the capital forward immediately. Another major positive is that the building is brand new, often well-designed and it is also protected by the New House Building contract (NHBC) for the first 10 years. Once completed, the units are in excellent condition to rent out, they are located in the right area and often achieve fantastic yields.
Period and second hand properties come in all different shapes, sizes, styles and periods.
A period property would normally refer to a building that is pre 1914’s for example Edwardian, Georgian, Victorian and Tudor. A second hand property would normally be from 1914 to present day. If you want a property with charm and character a period property offers this and in many cases it will have original features from the period it was built.
London has many beautiful houses, some with historical importance. When buying a period property you aren’t just buying bricks and mortar but a piece of history, a part of Britain’s cultural heritage, a unique building that represents the architects’ and artisans’ skills of a bygone age.
The advantages of buying a period or second hand property in many cases may include history, individuality and architectural features. They are often located in well-established communities with shops and amenities nearby and the properties often offer more space than new properties with high ceilings and larger rooms, somtimes with more mature and larger gardens. Disadvantages of period properties could be that the property is old and in poor condition and therefore renovation may be required. Sometimes there are higher repair and maintenance bills and covenants may exist on the building, which makes renovation more difficult. If work needs to be done then investors need to appreciate that they may not be able to rent the property immediately.
Many property developers in London purchase traditional, period properties and convert them ready for leasing or for resale. Period properties tend to have a good capital appreciation and are popular for leasing. During the property boom years in the UK it was fairly easy to buy a period property, do a quick refurbishment and then sell it on to make a quick profit, however some of the profit made was purely due to market increases at the time. Nowadays, with a slightly more gloomy economic climate making a profit is more difficult and making money out of property development relies heavily on the skill of the property developer in making the right property purchase in the right location at the right price, managing a tight budget and work schedule during the development and then marketing it at a realistic price for a successful sale.
Whilst making money out of period properties has been restricted to the local builders and developers in the past we are opening up the opportunity to our clients in Asia. Remodelling and refurbishing a property in another country can seem fairly daunting to a foreign investor when you are living abroad and thousands of miles away from the property itself. This is particularly true when you start to consider local planning laws and building regulations, not to mention finding reliable surveyors, architects and builders. The team at Locate International has years of experience with property development and if you are interested in purchasing a period property or undertaking a development project then we are able to assist by selecting properties in the right locations, developing them and then either leasing the properties or selling them on. Our investors can take advantage of our local knowledge and benefit from potential investments that otherwise would not be available to them.
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