London is one of the largest and most dynamic cities in the world and has the most robust and transparent property market in the world. With soaring demand in both the commercial and residential markets and a consistent lack of supply in the housing market, it will always be the safe place to invest in.
Overseas investors have been taking advantage of the property market in London for years and have become the larger shareholders of commercial property and “trophy assets” in Central London. One of the first places to invest when a savvy overseas investor is looking to diversify the portfolio is always London.
GBP Exchange Rate
Investors can currently benefit from the exchange rate since the GBP has declined in value post-Brexit referendum. For countries like USA or others who’s currencies are pegged to the USD, a worth-while 10%+ additional value on currency can be enjoyed. This can easily translate into millions of GBP’s on a larger deal and make up for some of the taxes imposed on both local and international investors by the British government.
The London market is very fast paced so an investor needs an advisor who can offer expert advice and have attractive options at hand. Khaled Chahal from Henry Wiltshire says “I am able source the best options in the market and guide my clients through the entire process of the acquisition with ease” he continues; “I also have close working relationships in place with the top legal and tax advisors as well as lenders locally and internationally.”
Borrowers can currently look forward to very low interest rates and take advantage of low bank margins. Lenders are also keen and willing to lend to overseas investors. Also because the London property market is considered quite stable and risk free, we have seen more overseas banks offering debt to their local investors for property in the Greater London area.
Connectivity is being enhanced by the Crossrail project which is in full swing. Owners of property along Crossrail 1 have already enjoyed healthy Capital Gains on their assets and will be expecting to see another 10-15% by the time the Crossrail is complete.
Confidence remains high in London and the economy is still strong. Investors should take advantage of today’s market, plan to hold their prize asset for the long term and expect healthy capital appreciation and a steady demand and income.
For more information about investing in London property, contact our sales team.