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London Property Investment Guide

 

At JOHNS&CO we consider it our responsibility to know the London property market inside out, and we’re committed to providing the very best service to everyone we come in contact with. That’s why we’ve created our London Property Investment Guide as a free resource for anyone considering letting or selling their investments.

Becoming a landlord can be extremely rewarding and is a fantastic option for homeowners looking to generate income from a property they own. Property is one of the safest investments that you can make, and becoming a landlord poses several benefits, including a steady income, independence and security, along with some financial relief from the UK Government. If you are new to the game, you should understand some of the changes landlords can expect in 2020. 

Whilst the pandemic and UK lockdown has impacted the UK housing market in more ways than one, there has never been a better opportunity to boost your property portfolio with new investment strategies. Buy-to-let investments are straightforward, however, it can be worth knowing some more complex investment strategies in order to maximise your overall investment gain, and to minimise the risk of underperformance.

Seven Tips to Getting Started With Property Investment

Becoming a property investor is hard work, but, in particular, London property investment can be very rewarding, providing you know where to begin. You can find different types of long-let investment property in London. As the world’s most-visited city, there is certainly no shortage of short-let opportunities. 

Whether you’re a London landlord looking to maximise your return on investment during tough times, or you’re looking at getting started with investing in your first rental property, here are some top tips which we’ve listed below.

1. Identify Your Financial Status

Before getting started with property investment, it’s crucial to know where you’re at with your financial status, as you must be in the position to invest in a property first. Being financially stable is the most important factor of investing in property, so taking the time to fully assess your finances is crucial.

A golden rule is to monitor your costs and make sure that you have a high chance of getting more out of your investment than what you put in. Each property will take some of your time, with some properties having a higher cost than others. Properties must be worth the time, energy and cost. You need to consider this while identifying your financial status with property investment.

As a London landlord, a primary expense will be your mortgage repayments on the property. In order to boost your property portfolio, it helps to have more finance available to ensure that any properties you do own are taken care of and maintained between tenancies. 

You should regularly review your mortgage and make sure that you’re getting the best deal. Now is the best time to do this, with the Bank of England cutting the base interest rate.

2. Pick Your Market

The market you choose can make a massive difference to your financial results, so it may be worth investing closer to home if you know the market better. Wondering where to buy investment property in London? As the capital of the UK, London has long been considered the place to be to invest in property in the country.

Pick your market according to which location is the safest investment if you’re only starting out. This step involves evaluating your location criteria, rent/price ratio, population growth, school districts, convenience, safety, crime rates, public transportation, neighbourhood, infrastructure, councils and local laws.

3. Choose Your Property Investment Strategy

Buy to Let vs Buy to Sell? There are many different property investment strategy options available, with buy to let and buy to sell up there as two of the main types of investment strategies.

Buy to let offers the most lucrative of returns, whereas buy to sell is a fantastic investment if you buy a property to renovate and are looking to make a lot of money very quickly.

4. Invest, Renovate and Redecorate

There’s no time like the present, and improving your property now is no exception. Particularly in the London housing market, there is a higher demand for quality accommodation. If you’re suffering from long void periods or your property is looking a little tired or outdated, you may want to consider a makeover.

5. Property Investment Timing

Timing is everything, so you must be careful when you decide to invest in property and when you have enough finances available to do so. 

The best time to invest in property is when the market is performing at its highest level to avoid risks and maximise profit yield. With property prices increasing throughout the UK in a lot of areas, it’s strongly recommended to buy sooner than later in order to secure a buy to let or buy to sell property before value increases.

6. Know the Risks

As rewarding as property investment can be, there are always risks involved that you should be aware of. If you’re wondering how to get into property investment, you should opt for the safest and most sensible way possible.

Having a strategy in place to minimise these risks and grow from loss of income is critical in working through these risks and achieving success as a property investor.

Whilst it’s a great idea to be ambitious and aim high, you’re going to want to remain sensible and start small. If you’re new to the property market, take one step at a time so you can stay up to date with all properties, which is especially important if you’re planning to manage the properties on your own. Starting small is the best advice for investing in property, and over time, you’ll be able to maximise your property portfolio

7. Don’t Spend What You Can’t Afford

Investing in property can be more affordable than you might think, but this doesn’t mean you should invest every penny you have. You’d be surprised how much you can grow your portfolio with small investments. 

Build your portfolio gradually and focus on finding properties that fit your budget and provide strong potential rental yields and capital growth returns, or even a property that can be renovated on a smaller budget to produce great profit (for buy to sell). 

You should focus on making one or two investments at a time until you feel more comfortable with the process and confident in your investment strategy. Building your property investments gradually is a great tip on how to get into property investment in the best possible way.

  1. Use an Online Letting Agent

It can also help to use a trusted estate agent in London, like JOHNS&CO, who can provide you with a tailored range of services, including a dedicated property manager on-site, a tailored marketing campaign to advertise your property to prospective tenants, professional advice on rental legalities, and the overseeing of any issues or queries on behalf of your tenants.

We know how important it is to keep void periods minimum which is why we do everything we can to minimise them. This commitment has seen us let property in new build developments up to six months ahead of completion.

Seeking help from a lettings agency will mean that you have more free time to focus on new opportunities to add to your rental portfolio. A lettings agency can even complete thorough tenant checks and handle administration and paperwork on your behalf as well as keeping on top of legal issues and new legislation, so you won’t have to.

Thinking of Investing in London Property?

If your knowledge isn’t up to scratch, or you are looking to expand your property portfolio, we are here to support. With years of experience and in-depth local market knowledge, our lettings and sales team are experts in matching people with their perfect property. 

As a landlord with JOHNS&CO, you will receive a tailored range of services from our experienced lettings team, allowing you to benefit from a dedicated property manager on-site at each development we represent, a tailored marketing campaign to advertise your property to rent and our vast links with corporate companies. 

Get in touch to speak to one of our investment experts.

 

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Thinking of investing in London property?

Get in touch to speak to one of our investment experts.
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