Property Investment In London

London Property Investment

There are certain areas in and around the London region that are hot spots for property investment and property investors. At time of writing the property market is unstable with even the most courageous investors holding back on new investment projects and opportunities.

Investing in property across the UK has always paid dividend provided the investor understands the market conditions and focuses on either profiting from monthly rental earnings or the more longer term equity increase.

The London property market, traditionally has always been the premier or prime target for a majority of investors as London is the business capital of the UK and even in times of economic downturn tends to suffer less in terms of wide scale profit.

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The obvious area of interest at the moment is Stratford - with plans to regenerate the area into the third most important part of London in time for the Olympic Games in 2012. Read more about Property in Stratford

What Areas Of London Are Best For Property Investment

Non specifically, the best areas in and around London are those that currently have good road, rail and tube links. These areas will more likely sprawl in time.

The current market value of properties in London with good transport links are usually highly priced - but in today’s market bargains are there to be had if you know where to look.

Looking forward, if an area is just out of your budget follow the tube stops in directions heading out of Central London until you find and area that is within realistic budget.

As an example if Stratford is an area for potential investment but not affordable follow the tube stations north - this brings Leyton and Leytonstone into the equation.

Which Areas of London Are Most Popular For Property Investment

Currently the most desirable and popular London property investment targets are:

Hampstead Limehouse East Dulwich
Walthamstow Shoreditch Chingford
Maida Vale Finchley Brockley
Finsbury Park Palmers Green Norwood
Battersea Leyton Balham
Ealing Peckham Rotherhithe
Cricklewood Lewisham Willesden Green

These areas are in no particular order and some of the obvious candidates have been omitted such as Mayfair and Cheslea.

Property Investment Vs Property Development

Property Development Or Property Investment

Property development and property investment could be classed as one and the same in some quarters - but in reality they are a quite far removed.

Property development is best hightlighted by the televison programs that frequent our screens such as Property Ladder and How To Be A  Property Developer. A residential property is acquired below the market value due its state of disrepair and then developed into something that can be offered for resale or to the Buy to Let or rental market.

Profit is made (or lost) by the developer but time has to be factored into the equation as development is very much hands on and linear. Many individuals that are property developers can only concentrate on one project at a time.

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Property Investment on the other hand is all about the rental market and is completely scalable.

Why Property Investment Is More Profitable That Development

The ideal starting point for a would be or potential property investor would be to research properties in your area - visit local estate agents and ask to be put on their mailing list. Ideally pick a dozen or so properties that will not take up too much of time firstly, to initially view - and secondly to visit should the need arise.

The type of properties to avoid are flats or apartments where you may need to factor in the cost of ground rent or communal maintenance - this monthly cost will come out of your profit.

It is important  to remember that your profit is not based on the potential of your equity rising in years to come but a solid monthly profit from the rental.

Once you have found the formula for success it can repeated over and over again.

Property Investment is by a better option and by far a better use of you time and capital.