Second Homes in London – A Do or a Don’t?

Second Homes in London – A Do or a Don’t

Is investing in a second home located in London a do or a don’t? Well, Islington estate agents Hugh Grover Associates think it’s a great idea. Here’s why:

Why Invest in Property?

There is a traditional view that there is nowhere safer to invest your money than in bricks and mortar. For many across the country this has not rung true but in ever popular central London boroughs and the surrounding suburbs property prices have stood strong – they’ve even risen!

Investing in property here is one of the most common types of investment after bonds and shares. Whether buying a second home in order to invest a nest egg for retirement, buying to rent or as a boat hole for trips to the city there’s never been a better time to buy.

Investing in property can bring you a return in two main ways, either by renting or the selling of the building for a profit through capital appreciation. Of course with renting there is the fear that the property will not get filled but this is highly unlikely in popular areas such as London.
Investing in property is a great way of safely putting away money that you will not need to access for some time. It is a great way of expanding your investment portfolio. Be aware however that there are buying and selling costs involved. There is also the added bonus that if the home is unfurnished or a necessity as part of your job contract then you will receive a Council Tax discount.

Why Buy in London?

London is a great place to live and visit. As Britain’s capital and the biggest city in the UK there is never a dull moment. With brilliant museums, shops and restaurants there truly is something for everyone.

Property prices in London are on average much higher than the rest of the country, and although buying prices are high the potential for return is huge. London has weathered the property storm and economic downturn of recent years with ease and property prices have only risen.

Property giant Savills has predicted property prices in London will rise by 25% over the next 5 years, meaning a healthy return on your investment especially if you plan to rent a property out.

This may sound too good to be true but the facts and figures match up. According to Zoopla the average asking price of a property in London is just over £1million and the value change of properties is up 22.25% and £93,000 from the past 5 years.

The 2011 census found that nearly a quarter of a million people own a second home in London which is only partially lived in. There is undoubtedly even more who buy-to-rent or inherit homes every day. London is a popular area to invest especially in boroughs such as Islington, Camden, Hammersmith and Fulham, Kensington and Chelsea, and Westminster.

So will you be buying a second home in London?

About the Author