London has been established itself as one of the property investment hot spot over decades, savvy investors have been buying property in London to growth their wealth and enjoy property price appreciation. Historically, average property price in London is doubled over 8 - 10 years due to strong demand and lack of housing supply. In 2015, average London property price has hit GBP 500,000 according to the data from the land registry as reported by Telegraph (http://www.telegraph.co.uk/finance/property/house-prices/11959731/Average-London-house-price-hits-500000-as-capitals-housing-market-shows-no-sign-of-losing-steam.html).
10 reasons why investors are buying property in London as investment
- Shortage of supply versus demand
- Decent rental yield and great capital appreciation
- Great infrastructure
- Stable economy and political environment
- Transparent system
- No restriction on foreign ownership
- No restriction on repatriation
- Second global financial centre after New York
- Third highest number of Billionaire in the world
- Tax friendly system
Is buying property in London still a good investment - What's next
London population has reached over 8.6 million people in 2015 which has surpassed the all time high number of population. The number does not stop and it is continue growing, this is the fundamental reasons why London property price will continue to appreciate. Thus, buying property in London is still one the best property investment option for investors who wish to grow their wealth and enjoying decent rental yield.
According to Telegraph, London house price shows no sign of losing steam in which supported by wider economic improvement and combination of improve earnings growth, record high employment, and low interest rates.
Where and which London property you should buy
According to Evening Standard, Central London property price will stall until 2018 due to stamp duty rise. Property price above GBP 925,000 requires investor to pay higher stamp duty since the new scheme implemented in the late 2014. Please refer to our London property tax article to find out more.
As the ripple effect starts to spread out from central London, if you are buying property in London as investment, you must start looking in the Zone 2 and 3 of London where price is much more affordable. In addition to the affordable price, Property in Zone 2 and 3 of London also offers higher rental yield and capital appreciation.
Next thing to note, buying property in London near upcoming crossrail will offer higher capital appreciation according to reports (City AM, Evening Standard, Telegraph, Financial Times, Banks, and many other reports). Crossrail is the largest infrastructure investment project in UK history, once it is completed in 2018, Travel time between East to West London and vice versa will be cut by half and it will greatly contribute to the economic activity and growth of London.
In 2015, Newham in East London sees UK's biggest house price rise according to The Guardian (http://www.theguardian.com/money/2015/dec/28/newham-east-london-sees-uks-biggest-house-price-rise). Property price in Newham will continue to appreciates in the future, especially in the Royal Docks area as this location has been identified as the new London Financial and Business District. Total GBP 22 Billion invested in this area to turn Royal Docks into the World Class and International Business District.
Royal Wharf @ London – 999 Years Mega Township By SG Developer Oxley and UK Developer Ballymore
- Strategic location in Newham, Royal Docks- New London business district in the making
- Rare mega township in London - Extremely convenient with FnB, shopping, and many other attraction within the development
- Door step DLR
- Walking distance to upcoming crossrail
- Proximity to the Asian Business Port
- 12 Mins to Canary Wharf
- Full condominium facilities - 20,000 sqft allocated for the residents to enjoy the facilities