For as long as anyone can remember, buying a home in London just didn’t make sense. The cost of the average home of comparable size was well over the market value in other areas outside the capital and so many people decided to commute rather than pay high mortgages. If ever you were considering buying a home in London, NOW is the time to buy. Here are at least four very good reasons to ponder.
1. Prices Are ‘Down’
While the price of residential property in the UK fell by 0.5% as of June, the ONS reported that London was hardest hit. Figures indicate that homes in the capital saw an increase of only 3% through June, but down from the 3.5% gain recorded in May. This is the lowest yearly rise in rate since 2013, says the ONS the fastest drop in rates since the height of the financial crisis of the previous decade.
With prices down, it is not only easier to qualify for a mortgage, but the average repayments will not be as high, making homes much more affordable. Even so, the one thing to keep in mind is that nowhere in the UK are homes likely to sell faster than in an epicentre of global financial activity. With prices being more affordable at the current time and the potential for rapid resale once the market rights itself again, it stands to reason that the time to buy in London truly is now.
2. A Good Investment on Several Levels
Buying residential property in London now is a good investment on several levels. Not only does it have the potential to turnover later at a much higher price, but there are also ways to monetise that property now. In fact, there is no reason why you can’t take advantage of that investment in your future as well as the profitability residential property in the capital offers now.
One of the things which you can do is rent rooms out during the working week to those who live far outside the city. Sites like mondaytofriday offer both renters and homeowners a place to seek or list rentals. Rooms can be let out during the week to those who travel long distances or they can be let out daily if someone requires an alternative to a costly hotel overnight. This is the sharing economy and an ever increasing number of people are letting out rooms to help pay the high cost of their mortgages.
* Letting out a room on a leasehold may be allowed if the buyer resides there. Rentals are usually forbidden but letting out rooms often falls between the cracks. This is something you may wish to research to be safe.
3. The Benefits of Living in a Global Hub of Financial Activity
Professionals within literally any sector can benefit by living in one of the world’s leading epicentres of financial activity. Some choose to buy homes in the capital rather than commuting to work daily simply because it makes good business sense. Not only can a London home be sold quickly under normal circumstances, but it provides a home base while working in the capital.
For Millennials who seek a greater social experience, there is nowhere in the UK quite like London. As a city that is home to almost 9 million people, there is no lack of things to do and people to interact with. At the latest estimate, the population of London was 8,787,892 in 2016.
4. Housing Crisis WILL Win Out Over the Current Price Slump
Eventually, the housing crisis will win out over the current slump in prices, making it harder to afford a home anywhere let alone in the nation’s capital. Although it has yet to be determined just why demand is down and prices down alongside a reduced housing demand, the fact remains that there are still millions of families and individuals seeking to buy a home.
This may be a temporary problem due to looming concern over the final leaving and what it will mean to the economy. There is no conclusive evidence pointing to this, but many analysts feel that a great number of businesses fear the impact of Brexit. Maybe hiring is down due to these fears and maybe those in a position to buy are concerned about their future. However, the one fact remains and that is the fact that the UK is still experiencing a greater demand for housing than properties available.
A Lesson to Be Learned from the Third Richest Man in the World
When putting this all together, perhaps it’s wise to look across the pond to the third richest man in the world, Warren Buffet. He says that one of the mistakes he regrets the most is in passing by an opportunity to invest in Amazon and Google when given the chance. He states that the numbers “at the time” didn’t make sense and he should have thought more about future potential.
That’s why buying in London NOW makes good sense. There is a huge potential for future profit as well as the ability to subsidise a mortgage in this sharing economy. Renting out weekly rooms can provide a huge part of your mortgage repayment and that is sound business advice if ever there was any.