| Why Invest In London? |
Why purchase a residential property in London?
The Olympic effect.
The Olympics is to take place in London 2012 and it is predicted that the games
will have a long lasting positive effect on London property prices as has
happened with almost all other host cities.
London: The Finance capital of the world
Over 65% of companies listed in Fortune’s global 500 a key barometer of world
financial activity, have chosen London as their European or world headquarters.
London’s financial district employs thousands of white collar workers where the
average annual pay for each is over £120,000.
The annual bonuses which are paid to bankers in the city have in recent years
had a huge positive effect on London’s property prices.
Good rental yield.
Rents and yields are increasing in almost all areas of London so profits from
rents will increase steadily over time.
Historically rent increases in London average out at 5% a year.
Yields of up to 7% can be had on some London ex local authority properties.
Buy to let properties in London offer much better yields than many other
European cities.
Good record of capital appreciation.
Huge demand for London property.
With a population of in excess of 7,000,000 residents and thousands more
migrants arriving every week there is currently a huge shortage of rental property
in the city.
Low rates of stamp duty.
When compared with other countries such as Ireland and Belgium the UK has
very favourable stamp duty rates on property.
No stamp duty is payable on property purchases up to £125,000.
A 1% rate applies for properties priced from £150k up to £250k.
A 3% rate applies on property priced from £250,001 to £500,000
A 4% rate on property priced from £500,001 plus.
UK Interest rates appear to be on the way down.
Unlike European interest rates, rates in the UK appear to have peaked in 2007.
Advanced buy-to-let mortgage market in the UK.
The buy to let mortgage market in the UK is much more advanced than in most
other European countries.
A Sound investment.
London may not have the potential rewards of investing in India, China or Brazil
but it is a solid investment and one that most feel comfortable with.
Strong Euro/Sterling exchange rate.
The Euro is currently at its strongest rate ever against the Pound and has gained
almost 20% in the last 6 months.
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