Is Buying a Flat A Good Investment?
With so many opportunities to make money in today’s market, knowing where to invest your money is going to be the most important aspect of getting a great return on investment. The housing market has consistently proven to be a long term investment winner. In today’s guide we will give you more information about this market opportunity.
Is a London flat a good investment
In short, yes! Buying a flat in London is a great investment for your money. With house prices continuously rising in the capital, it’s an opportunity that shouldn’t be missed.
The market conditions have never been better to buy a property in London. Even with the stamp duty freeze set to end in March 2021, the opportunity to buy a flat or house in the capital remains high. With record low interest rates and market availability not seen since the 1970s, property investment in London is a secure way to see your capital grow over the next decade and longer.
Which areas in London are best for property investment
Knowing where to buy is essential for your investment. Popular areas south of the river such as Clapham and Richmond are in high demand but are they worth the high price they are commanding? You want to look out for properties which really fulfil certain criteria.
Access to transport links and urban regeneration are key. Southall for example has close connections to Crossrail, and when operational it will be a key target for those wanting to get into and out of the city, fast.
Wandsworth, which is a stone’s throw from Clapham has greenery and access routes on foot to Putney and Clapham Junction – a much underrated location by many.
Then there is Harlow which is north of the city but with excellent routes into and out of the capital. For those looking for countryside to enjoy at night and during the week, Harlow offers the opportunity to have this on its doorstep.
Is there help available for buying a flat in London?
Help to buy schemes are available for buying a flat in the London property market.
The government over the last few years has provided government backed schemes to get people onto the property ladder. Help to Buy has been one of the more successful schemes and has allowed first time buyers to put a foot on the property ladder in the UK.
This has been successful in London where the average flat price in 2020 was £548,000.
Help to Buy Scheme
The help to buy scheme has given the opportunity of investing in property to everyone. To be able to apply to this scheme you need to fulfil certain criteria which includes;
- Your new home will be your only residence.
- You will not own any other property at the time of completion.
Under Help to Buy London:
- Select a new build home up to a value of £600,000
- Pay a 5% deposit
- The Government provide you with a loan up to 40% of the value of the property
- This loan has no fees or interest charges for the first five years
- Obtain a 55% mortgage from a commercial lender
Stamp duty holiday
Stamp duty has been a much debated topic since its introduction in the early 00’s. It is basically an additional tax that gets paid when you purchase a property. In 2020, during the global pandemic, stamp duty was frozen/stamp duty holiday was introduced. Stamp duty is set at different rates for different house values.
The stamp duty holiday is set to end in March 2021 and would see you having to pay these fees up front on any house purchase, so, be quick!
How can Strawberry Star help?
If you’re looking for your first London flat investment then Strawberry Star can help. Use our property search page to discover what is available and check out our services which are designed to help you get your foot on the property ladder. From help to buy applications and advice to giving you insight into the London flat market to help you make the most informed decision available. You can give us a call and one of our agents will be happy to help.