Property Investments in 2015-2016

Property Investments in 2015-2016

The property market across Europe is booming especially here in London. Together with the EU market, the UK residential property market shows signs of constant growth. As the largest property market, London as the capital, has the greatest opportunities for property investment with a large financial market, millions of people renting, living, and event short term stays by tourists seeking residential property. Yet the demand in the London property market is higher than the supply. In simple terms it means: If the demand increases, and the supply remains the same, there is a shortage – this will mean prices increase as is the case in London.

This problem is predicted to remain the same in London for decades – the population will grow and there will not be enough affordable residential property for the population demand. Economic stability and standards of living along with higher education are playing a role too, as overseas investors and new arrivals to the UK see London as a place to invest. All these factors influence the market as rents continue to climb and residential property prices rise along with them as a result of the increasing property investor’s desires to make more profit.

It seems like a growth that cannot be sustained, but taking into consideration property analysts opinions, London shows a stable forecast for investments in residential property – growth of 5-15% every year. It is a great opportunity for overseas investors who are planning to sell a property after 10-15 years to earn profits sometimes in excess of 50%.

UK and London especially has become a safe harbour for foreign investors especially from China and Russia. Usually for this category of investors a London property is the second or third property in their portfolio and they know they are savvy with their investments. This situation does not make life easy for local investors, the competition for property purchase is high and those who have money or those who can afford a mortgage to invest in a second property are the greatest winners.

Here at Anthea Lettings, we have a team of staff to help landlords manage their property investments and we work with local and foreign investors to ensure they see returns. The most attractive areas in London to invest in new property over the past 5 years are Greenwich (average property price rise of 19%), Barnet (up to 20%), Brent (up to 20%), Haringey (up to 21%), Hackney (up to 22%), Islington (up to 23%), Camden (up to 23.5%), and, of course Kensington, Chelsea and Westminster (up to 26%).

Buy-to-let is what foreign investors prefer to do for their 5-10 year property investments and after selling the property it is common for these investors to use the profit to re-invest in another project or live the dream by retiring.

In a place where the prices continue to go up, it is always a good time to investment in property because next year’s property investment is this year’s profit loss.