Tips on how to find the next buy-to-let hotspot
- 4th May 2012
- Property Tips
Raft of infrastructure and development projects in London create capital growth opportunities for investors.
One of London's grimmest estates, The Ferrier Estate in Greenwich, will be completely transformed by a £1billion regeneration scheme, in a project that creates a buy-to-let investment opportunity for landlords.
Stephen Ludlow, Chairman of ludlowthompson, explains: 'Major, long-term redevelopments of run-down areas create excellent investment windows for landlords.
'Investors who act early can often buy cheaply and benefit from capital growth once the area is improved and house prices increase. Developments like these do not tend to reduce rents, so the normal 'invest for yields' strategy still applies ' but there's a greater likelihood of capital growth too.
'While it is unusual for buy-to-let landlords to target investments solely for capital growth, the high number of regeneration and major infrastructure projects going on in London is creating some fantastic opportunities for savvy buy-to-let investors.'
Big redevelopments and infrastructure projects create new local amenities and better transport links, so they can provide a significant long-term boost to local house prices.
Say Stephen Ludlow, 'Landlords who are keen to capitalise on these up-and-coming developments should keep a close eye on local planning applications. That way they can jump in ahead of the crowd.'
Recent high profile London redevelopment and infrastructure projects include:
- Olympic Park, East London
- Brent Cross Cricklewood, new town centre created in North London
- Wembley City redevelopment
- Cross Rail
- HS2 ' the new high speed rail network
- Major up and coming landmarks, such as The Shard
Major, long-term redevelopments of run-down areas create excellent investment windows for landlords.
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