5 Reasons Why Overseas Investors will Invest in London Property in 2017
Since the UK announced its planned exit from the EU overseas investors have been on a mission to snap up London property. Many domestic buyers shied away, with some even withdrawing before exchange, foreign investors jumped at the opportunity to invest in London’s real estate market as the pound fell.
2017 is set to bring new confidence, investment opportunities and new London homes – read on to discover why overseas investors will continue to splurge into the market.
1. Diversify Portfolios
With changes in 2016 made to the buy-to-let investment rules made by ex councillor George Osborne oversea investors will look to expand their portfolios via diversification; investing in different forms of real estate, such as hotels, care homes and student units as these type of investments may provide a stronger return.
2. Up and coming London Suburbs
With the increase in stamp-duty made in 2016, oversea investors are looking to branch away from areas such as Mayfair, Chelsea and other Boroughs of Central London. Investing in properties situated in the outer suburbs will allow investors to compensate for the hike in stamp-duty as property prices in areas surrounding Central London such as, Slough, Hillingdon, Ealing and Acton offer a lower average property value compared with the centre.
3. Traditional Investments
The trend of traditional investment opportunities will never die (at least not for the foreseeable future), investing in good property in good areas such as Ealing, is a traditional investment that most investors would consider to be profitable. The UK has many historical period builds that many overseas purchasers like to own a building that has some history attached.
4. New Home Running Costs
In 2017 overseas investors will increasingly look to invest in new London homes as the ongoing costs associated with ownership are considerably less than investing in a period property. New homes are more efficient, and often come with a 10 year warranty. This makes for an easy investment that does not have costly repair bills and does not disrupt tenants.
5. New Development Boom & Returns
We can expect to experience a boom in developments which offer a fixed rate return. These fixed returns, along with no additional costs during purchase and ownership, provide investors with peace of mind and mitigates risk in an increasingly uncertain world. When investors are buying to supplement their income, knowing how much money they’re going to be getting is essential, especially when investing in London’s real estate market.