TOP TIPS TO PROPERTY BUYING IN LONDON
With an all-time high population of over 8.6 million and rising, London is one of the most demanding and inhabited cities in the world. Due to this, it makes London a profitable investment with the demand for property at an ultimate high. Well known for its fast lifestyle, energy and buzz, and good standard of living, the city is also known for its diversity and cultural background, which just adds to its appeal and is no wonder why people want to be a part of it.
If you like many others are thinking of investing in a property in London, there are a few things to know beforehand. Like buying any property, the process takes a while so you need to carefully consider and plan everything, and make sure you are 100% sure before making such a big commitment and putting your hard-earned money in. Here are a few tips to guide you to buying a property in London.
WHICH PROPERTY IS RIGHT FOR YOU?
Before anything, you need to know the type of property you want to invest in. What’s your price range? How many bedrooms? These are just a couple of questions to consider. It is important to do your research and look into factors such as the area you are buying into, and what’s nearby. These will affect the price of properties. Another way that will help you choose a property right for you is by trusting in the credible experts, such as Leo Newman who specialize in London properties. They are there to help so it’s important to take advantage of their services and knowledge.
With London being an overpopulated city and expensive to live in, most of the properties are flats, apartments and small townhouses, and most of which are rented, particularly in Central London. Other parts of the country aren’t so compact; therefore the accommodation and housing options are bigger with gardens and drive-ways.
THE INVESTMENT PROCESS AND IMPORTANT FEES
Buying a property is a very stressful time and a lengthy process. There are a couple of ways of investing and some terms to familiarize yourself with, as seen below:
1. Freeholder; owner of the property and land it occupies. This term means to acquire full ownership and perpetual right of a property.
2. Leaseholder; the leaseholder owns the property however not the land. They have a duty to pay rent to the freeholder. Once the lease is up according to the agreement made, the property returns to the free holder regardless of whether the leaseholder extends the contract or not.
It is also important that when investing in property, you keep in mind the hidden fees and costs that a lot of the time are overlooked:
- Notary fees – approx. £ 1,200
- Costs of searching
- Land registration fees
- The stamp duty: 1% for the assets and between 3% and 7% for a property worth £250,000+
- Evaluation fees of properties and construction of the building if needed
Other costs that need to be taken into consideration depending on the type of property you invest into are as followed:
- Apartment complex fees– this includes cleaning of common areas, elevators if there are any, various repairs and maintenance, gardening, etc.)
- Groundrent(fee paid to freeholder) which is dependent on the size and type of the property
THINGS TO AVOID DOING
- Negotiate the asking price. The biggest mistake you can make is giving the asking price without trying to get it down. Most of the time, the initial cost given is above what the freeholder would be happy with, so if you negotiate and offer a little less they are more than likely to agree on it. Be careful to not over negotiate however, as this can lead you to losing the deal altogether. It’s advisable to offer 10% and 15% below the initial asking price.
- Do your research and don’t settle for the first property you see. There is so much on offer in the property world, so how do you know you’ve found the right one after a handful of visits? As mentioned, the decision of investing is one of the biggest you’ll make in your life, so make sure you get it right. Think about the area and how it can help your investment grow in profit in the future, and also look at ways you can expand and further build to your property to also increase its value. It might end up being the case that you view 10 different ones and it is the very first property you viewed that you end up buying, however how would you have known that was the right one unless you had others to compare it to? Don’t rush the decision and make it hard for you to decide as you will then find yourself paying attention to the little details and not settling for average.