Why is London a good bet for buy-to-let?

Property Expert:
Stephen Ludlow
Director, ludlowthompson.com
Q: What are the advantages of a buy-to-let investment in London?

Pic: London Buy-to-Let investment. 

Stephen's Response:

London is currently one of the best locations for a buy-to-let investment. As well as a large supply of tenants and higher than average rents, buy-to-let landlords in London can expect to benefit from transport links within the city.

Throughtout the economic crisis, rental demand in London has remained steady with some peaks and troughs, but the fact remains there is still a shortage of property.

The 5.9% average train fare rise for 2012 means that potential tenants are spending more money on living closer to work in order to shorten their commute. Living outside of London may mean cheaper rent, but can easily amount up to thousands of pounds in commuting costs. Buy-to-lets in London can exploit their unique position in the capital for quicker commutes.

Another advantage of investing in a buy-to-let in London is that London house prices continue to buck the downward trend on capital values.

Second hand property usually yields better buy-to-let returns over new builds. However, it is important to ensure a period property is surveyed before you buy. Reducing the risk of buying a potentially damaged property is worth the extra cost of professional advice. Investing in furniture for a buy-to-let in London may be beneficial depending on the tenants you would like to attract: fully furnished is beneficial for students and young professionals, whilst older tenants who may be looking to rent longer term are likely to have their own furniture. Always ensure tenants are professionally referenced via a credit referencing agency. ludlowthompson advises rental and legal warranty cover, which protects landlords in London against unpaid rent and any legal expenses.

Disclaimer:
Neither ludlowthompson nor their ‘experts’ take any responsibility for any action or loss incurred by readers of these pages. The reader acts on advice at their own risk. Answers to questions are not exhaustive. Financial advice must always be sought from a professional financial adviser.

 

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