London Property Investment

So you’ve decided to take the plunge and buy your first investment property? Or maybe you’re looking to add another property to your existing portfolio? That’s the easy bit, now comes the tricky part. What type of property should you buy to get the maximum yield from your investment?

London property investment advice

Location, location, location... it may be a cliché, but location is still the most important consideration when you’re considering buying an investment property. Try to think like a potential tenant. What’s your market? If it’s the private rentals market then you need to think like a professional tenant! Your idea of domestic bliss could be a leafy middle-class suburb, in a large detached house – quiet, sedate but absolute hell for a young professional tenant. They want to be ‘where it’s at’ and near to public transport, as most don’t have a car. They also want shops and those trendy little coffee shops. Nor do they crave cosy evenings at home in front of the TV, but crave cosmopolitan restaurants – places where they can spend their hard-earned cash after a long day at the office. So, think like your target tenants when you’re buying.

Property with ‘investment potential’

Avoid properties that are branded as having “investment potential” like the plague, especially if you hear the dreaded words from a sales agent. To them, a landlord is a wonderful invention – someone who they can cast off their latest nightmare instruction to – a property that simply won’t sell.

What’s hot and what’s not

The rules rarely change here; don’t go for fads. We all love plasma TVs, but does a landlord have to provide one? No. Tenants will rarely turn these types of gadgets down but they also won’t pay more for them and, if they go wrong, it’s the landlord who is responsible and who will have to pick up the bill.

Instead, go for solid decent locations and property that will appeal to the widest range of tenants. If possible, try to buy something near public transport, with an elevator if it’s above the first floor and with an equal number of bathrooms to bedrooms. If it’s not in good condition, give it a decent makeover before letting – you won’t regret it and it will be sure to draw in a plentiful supply of potential high-quality tenants. Also, security is a high priority as this is also important to them. 

Most importantly...

Get the best, unbiased advice from an agent who only does lettings. It is in their interest if you buy property that can be let quickly at the highest rent and for the longest term. They know what is in demand both in terms of property and location. This is vital to avoid costly mistakes.