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Investments in London property with the eyes of the professional

Investments in real estate of London pursue the ultimate goal – getting pure dividends from the purchase of a residential facility. To date, the profits can be made on reselling real estate at the time the highest price increments, as well as providing the facility for rental. In this case, the investment will pay for itself slower, but guarantee stability for the long term.

Among international investors residential objects of the secondary market (cottages, townhouses, detached villas and apartments) have a higher priority. As a rule, they choose these investment objects for the sake of a potential yield. The greatest potential for profitability is determined by the annual growth of capital. On this basis, more than 67% of real estate investments in London enters the objects of elite sector. According to solicitors.guru (a legal hub allowing you to find a solicitors in Norfolk, Cheshire and other regions) London’s conveyance solicitors mention the following numbers: the minimum cost of such facilities in early 2015 ranges from £1,200,000. The average market prices for real estate are considered to be premium in the amount of £3,500,000 – £ 4,500,000. However, about 47% of all investors prefer to invest in more expensive objects – property at the price of £6,000,000 – £7,000,000.

This interest in the elite residential sector is triggered by the most intense price increases, which correspond to 10% – 12% of annual growth. This rise in prices makes it possible to gain pure earnings by resale real estate taking into account the difference between the initial cost for the purchase and the final amount of the item at the time of sale.

In this regard, investment in real estate in London comes to the maximum extent in the central regions of the capital. Housing stock in the central area is 90% formed of elite competitive objects. The highest concentration of real estate with a high potential yield is focused in the districts of Knightsbridge, Mayfair, Belgravia, South Kensington, Notting Hill, Westminster and Chelsea.

According to data from Dataloft experts, Mayfair is gaining particular interest at the moment. This area now has the average market price of £60,000 per square meter of living space. By 2016, experts expect a capital gain to £120,000 per square, and by 2020, the Mayfair property may become the most expensive in London at prices up to £160,000 per square meter. Talking about the most liquid real estate at the moment, we should focus on the secondary residential market of Belgravia. The average price of luxury residential properties in this area reaches £10,000,000. Investments in real estate in London, in this case may bring the profits and returning the object in rent because the tenants indicate that they are willing to rent a property in Belgravia at a price of £ 45,000 per month.

At the same elite sector is characterised by stable growth in prices, which minimises the risks of investment. Even in a period of stagnation (2009 – 2012 years), the elite real estate in the fashionable areas was sold at a price 5-7 times exceeding the average market. Now, the price gap is even more pronounced.

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Considering student property as an investment target from every angle

Student property in the UK is now considered to be one of the most profitable and promising investments. British universities are very popular among domestic and abroad students, so the studios and apartments for student audience are in steady demand and the price of entry into the market, compared with other types of real estate is not that large, and is basically accessible to many investors, a potential investor may even take advantage of mortgages. To evaluate the profitability of investments conducting a thorough analysis of its maintenance and acquisition costs is essential.

An in-depth look at additional expenses

When buying any real estate you simply cannot do without additional costs, and student property UK is no exception. Firstly, it is necessary to spend a certain of money when associated with the acquisition. In the UK, there are tax breaks on the purchase of real estate (stamp duty); if the purchase price is less than £125,000, you do not need to cover this tax, and the student’s property, as a rule, fits under the specified range, so the tax is not necessarily paid. However, if you acquire expensive housing or, let’s say, several units, stamp duty rate can reach up to 15%.

And in any case, you will have to pay for legal services of conveyancing solicitors. Sometimes they are included in the cost of housing, but more frequently it is not; in such a case you should take into account the sum ranging from £500 to £1,000, plus possible additional costs for the preparation of documents.

Additional charges follow at the stage once property becomes yours. In the UK, there is no single tax on real estate, but you have to pay a council tax, which is designed to finance police, government agencies, and servicing companies. The amount of the loan depends on the region and ranges from £200 to £2,500 pounds per year. Also, income from renting the property is subjected to income tax (personal Allowance), however, if the income is less than £10,000, the tax is not levied. Though, if the sum is greater, then have to pay 20% on income up to £32.010 annually, and up to 40 – 45% in case of higher amount of income. If the planned profit is put higher than £32.010 pounds per year, it is better to register a property to a company, and if your incomes account for £10,000, it is still important to declare and register it with the tax authorities as a non-resident, otherwise tax authorities will automatically remove the 20%. At the same time, if the property is way more expensive and costs more than £2ml., you will not be able to escape high taxes, as you will have to pay an annual tax (Annual Residential Property Tax, ARPT) in size from £15,000 to £140,000, as well as a capital gains tax at the rate of 28%. In addition, student property is typically registered as leasehold, meaning you have to pay the land rent (ground rent) – the payment of £100 – 500 pounds a year.

 

uk real property

Real estate use cases: understanding where your investments go

The construction market of the capital of Great Britain London offers a limited amount of business-class housing opportunities. In this article we will consider the project of residential complex in Eagle, located in the famous economic and commercial heart of the capital – the City of London on Old Street. The construction of Eagle was insured at the initial stage, so the buyers were legally protected from missed deadlines and frozen projects. Now it is a high-rise building has 26 floors offering large 1, 2 and 3-bedroom apartments and penthouses with panoramic windows on the upper floors.

Buying an apartment in high-rise Eagle is optimal for a variety of reasons. First of all – the location. The City of London is one of the most prestigious areas of London, where the average property increased in price by 10-12% annually. Secondly, the new Eagle has a perfectly landscaped infrastructure. The famous sights are in walking distance: in a 4-minute walk away LondonBridge metro station, and in 2018 the owners of the apartments in the Eagle will be able to move quickly to Paddington station and the picturesque district of Canary Wharf.

Despite the strong benefits, the cost of apartments in the new building are relatively low. Apartments with one bedroom (with an area 64 – 65m2) are exhibited at a price of £925,000. The cost of large-sized two-bedroom apartments up to 120 m2 does not exceed £1,800,000; the aforementioned numbers do not include the expenses on conveyance solicitors though, plus the investors will need to pay for the services of real estate agencies. All the apartments come with full technical equipment and decorations on board, while developers insure customers by giving guarantees on all the finishing work for up to 2 years.

The development company, which organised a large-scale project in the Battersea area, has set a new tone. Global interest in building Battersea Reach is heated and the forecasts of analysts, who believe that the new building will increase its value by 5% faster than other objects of the primary market. Battersea Reach is really a unique project, which consists of 4 high-rise apartment complexes, many of which have amazing views of the Thames.

Battersea Reach offers both luxury large two bedroom apartments and penthouses, and affordable cost apartments with 1 or 2 bedrooms. In addition, each property owner will be able to use a spacious terrace or balcony. Each of the proposed apartments is equipped with exclusive furniture, it is equipped with technical equipment, modern lighting systems, climate control and heated floors. The complex has an optimal infrastructure, since it is equipped with a gym, a business center and a restaurant.