Learn how best to get the right price for your property and how and where to buy a good investment in a challenging market. Read our Q&:A with experts in the property arena.
I want to buy an investment property in London. In the present economic climate, what would be the best place?
There are some niche sectors for the buy-to-let market which haven't been affected by the economic downturn- properties on the river are certainly one. Riverhomes finds that - although properties on the river tend to be more expensive as they appreciate more quickly - there are only a limited number of river fronted properties in London and a waiting list of people who want to live by the river and for landlords especially, river fronted properties command a premium when you rent them out.In places like Rotherhithe, which has great transport links to Canary Wharf, the demand for buy-to-let properties is still very strong. Indeed for a river facing property landlords can expect a yield of 6%.
In places like Shad Thames, which has great views of Tower Bridge and proximity to the City, where the tenants tend to be corporate bankers attracted by the concierge, gym and underground parking available, the yields may be slightly less but there will be no shortage of tenants and you can still expect them to pay £150 per week more than a similar property away from the river.
The attraction of having a glass of wine on a balcony, overlooking the river, means this sector of the buy-to-let market is bucking the trend.
John Tudor Evans
Riverhomes
City & East
Who is buying ex-local authority property? Is it mainly those who wouldn't be able to get on to the property ladder otherwise?
The purchasers are from a very wide mix of backgrounds. Buy-to-let investors account for approximately 65% and the balance are first-time buyers from all backgrounds however, most of them are young professionals who wish to commute to the City on the Northern, Bakerloo and Victoria lines.Since May 2004, with the inclusion of many former eastern block countries into the European Community, we have seen a large population influx in London, most of the new buyers seem to originate from here and they make the best opportunity of the lower than average prices to facilitate their entry into the housing market.
These buy-to-let investors seem to be predominately creating an affordable accommodation for their fellow countrymen and this may well be serving a need in this ever-changing community.
The striking conclusion is that our vendors are original right-to-buy-owners, who in most cases are either retired people moving to the suburbs to be near their family, or young families eager to move out of London.
Michael Curnes
MovingSpace London
What are the benefits to having an agent manage your property?
Tenant's are often happier in managed properties and it is likely that they will stay longer. Do ensure that the agent has a separate management team nearby and if possible try and meet the person who will be looking after your property. A good managing agent can help you avoid unnecessary void periods by ensuring that any necessary refurbishment works are arranged and started as soon as a tenant moves out.
Julia Cooke
Savills
Sloane Street
What are the advantages of living in a suburban area?
As an estate agent with 11 years of experience of working in a suburban area, I can quote many advantages however, to name a few; travel - Central London can be accessed quicker, if not in the equivalent time it takes from most innercity areas. It takes an average 25-30 minutes into Victoria, Charing Cross or Blackfriars by rail. Canary Wharf probably adds another 15 minutes to your journey time. There are also various night bus services.One can get a lot more property for their money and the suburbs are greener, which is more aesthetically pleasing to the eye after a hard days work.
Also, the historical trends prove an ever-expanding city and population growth is predicted to rise by a third in the south-east. Therefore, we expect property [prices] to rise here quickly again, once the mortgage markets have settled. And of course, there are plenty of bars, public houses and reputable restaurants to rival any City/West End location. I hope places like Margate will be the new suburbia in the next twenty years.
Sam Samuel
Ashdale
Kent
How can I make sure that my property is on the market at the right price?
Lots of people are risking themselves by underselling their homes in the West End because of widespread jitters about the property prices in the market throughout the country. Property values in the West End are actually holding up very well and aren't affected by the general downturn. People willing to sell their properties here need to have the support and reassurance of agents who know them and the area very well, because sometimes when firms don't have intimate local knowledge, they can misunderstand this corner of the market.In fact, you need to choose an agent with an in-depth knowledge of properties, specific selling features and even sensitivity to negative issues. The careful and close monitoring of the local market is also vital.
Here are five tips that will help you get the right price:
- Get two or three valuations - one is too much of a risk when they are talking about such a valuable asset.
- Choose a local agent who knows the intricacies of the local market - an agent that lives in the area is ideal - they can offer great in-depth local knowledge that can help clinching a good deal!
- Always ask the agent to provide comparable evidence to back up their price recommendations.
- Try to make sure that your property isn't over valued either. It will take longer time to sell and making it difficult to budget for the move.
- Last but not the least; simply don't go for the cheapest commission. In harder times, agents who charge low commissions could be compromising on advertising opportunities whereas you need your property showcased in all the right media, to show it to the widest possible audience.
Jonathan Hudson
Hudsons Property West End
Buying overseas
Font size
Mail
My account
Help
Community
Print now
Send to a friend
Related articles
Related products
London also does well no matter whwt happens, but as soon as other Regions Scotland and Wales (down 14%) start to feel that they are becoming alittle more well off, what happens a property price crash, Greedy Londoners have alot to be grateful for.
Page: 1