Here’s Why Now is a Good Time to Invest in London Luxury Homes
Posted: Jun 29, 2018
Got a lot of capital, and don’t know where to invest it?
Well, we’ve got a suggestion for you. Why not put in a London luxury home?
Luxury homes are a good long-term investment. You can buy them, live in them, enjoy the experience, and then sell for a good profit. It’s an asset that’ll appreciate in value. So below, we’ll list you a few reasons why luxury homes for sale in London are a good investment.
Study the reasons, and contact a few agents to explore the market!1. Prices Have Been Falling for the Past Few Years.
Ever since 2014, luxury homes for sale in London have experienced price drops.
This is due to many factors…
For starters, the UK government has been imposing stamps and surcharges on home sales. Especially those exceeding £1 million in value – reaching 3%. Also, there are no tax incentives for luxury homes. Those incentives only apply to homes under £500K.
Add in the Brexit.
The Brexit has created a lot of uncertainty in the UK market. And uncertainty leads to reluctance, and slowly dwindling values… So not only do you have taxes and duty charges. You then have low demand – forcing asking prices lower.
And this good news for you as a buyer! You can now get a luxury home on a bargain!
In fact, you can feel safe to bargain down 10-15% of the asking price. And you can go lower for homes in horrible shape.2. Because It’s London…
You’re not exactly buying a home in the midst of the wilderness.
London is one of the world’s biggest cities. It’s not just Britain’s capital city…. It’s a melting pot, attracting people all over the world… This city won’t die for centuries. And so you have an element of stability and certainty to the territory of your home. But also – London is a city for hardworking aspirers. Property prices here are very high, and that’s because high income brackets live here…
Combined with the recent trend in price drops, investing in London property seems like a good choice.
You Can Also Sell Faster.
A higher city population and higher income brackets means you can cash in fast.
And you’re not just selling to those in-city. You also have a market out of town - that wants to move into London…
Luxury Homes – Don’t Forget Your Market.
Those who buy luxury homes are other rich (or high earning) individuals. Rich people buy homes in London as a temporary residence. It could be for their kids, studying in-city. Or it could be for occasional holiday residence…
The point is, at London, you’re more likely to find a buyer than in many other places.3. Because You’re Not Speculating.
You can’t exactly speculate on a luxury home.
With speculative activities, you invest and cash in fast. You’re usually out of the asset in less than a year…
And you’re always experimenting with highly liquid assets.
But luxury homes aren’t a liquid asset. After all, it takes a long time to sell a small piece of property – let alone exclusive homes in London. Expect your luxury home to be on sale – for at least a few years after purchase.
And that’s not a bad thing. Because long-term projections indicate that the London property market is in for a rising trend! So don’t expect market prices to get much lower than they are right now. In fact, it would be odd if the market crashed any further than its current state…
Time to Flip the Property.
Knowing you need time to sell luxury makes you more patient.
And it gives you the time to think about how you’ll renovate your property. After all, if you want to make money on resale, you need to do a few fixes. You’ll have to fix everything from gardening and garages, to interior design and equipment. And you have to do so in a way that appeals to the tastes of today’s market – which are very modern.Good Investment – But a Lot of Work…
That’s just the nature of the real estate world.
You need the advice of an expert to start your investment journey. And it’s not just advice on which properties to buy…
But you also need advice on best renovations, market projections, and best marketing procedures.
It’s a serious niche to be in. But it’s one that pays off massively.
So contact the experts you need, and start drawing out your investment plan now!
Cynthia Madison is a young blogger and economics and marketing graduate. She writes about home, lifestyle and family topics and is a senior contributor to popular niche publications.