London has been, and will continue to be, a very popular property hot spot among investors. First-time buyers who are looking to buy a property in London will certainly have to do their due research and set pretty strict budgets to ensure that they do not end up spending more than they can afford. After all, buying a property in London will definitely be more expensive than buying a property anywhere else in the UK. And, let’s not forget about the ongoing buyer demand as well as overseas demand from property investors when it comes to property in London. If you are a first-time buyer who is looking to invest in London, here are some top considerations from the experts.
Figure out your finances
Before you even start looking at potential properties in London, you need to figure out your finances. In fact, this is the golden rule you need to follow before buying property according to estate agents in Leeds. Understand how much you can afford to put down as the deposit, how much you can pay every month for mortgage repayments and how many years will it take for you to comfortably pay off the mortgage on your property. Usually, the average property deposit for a first-time buyer in the UK is around 65 per cent of the household income. But when it comes to London, the average deposit for a first-time buyer goes up to a whopping 132 per cent of the household income. That is why financial planning is essential.
Don’t look at properties that are over your budget
In London, it is very easy to fall in love with properties that are worth millions and millions of pounds. However, if your budget is £500,000, then falling in love with a property that costs £1.5 million certainly isn’t going to help. That is why you need to be very clear with your estate agent about what your budget is and exactly how much you are willing to spend on your new home. Try to only look at properties that are within your budget, and potentially some properties that are lower than your budget. That way, if you do fall in love with a property you will at least have some wiggle room during negotiations.
Play the odds
Get in touch with multiple estate agents to try to figure out which agent is best for you. Ask your friends, family and colleagues for recommendations and should even look at online reviews to find the best estate agents in your area. The more estate agents you meet, the higher the chances of finding the right estate agent. Similarly, never say no to viewing a property. You never know when you may come across the property of your dreams. If your estate agent wants to show you multiple properties every day, always be willing to go. This will show the estate agent that you are a serious buyer and you will get a fair idea of what types of properties are on the market as well as the average cost of such properties.
Choose the right location
Just like in the UK, there are many towns and districts in London that are highly populated and very overpriced and there are quite a few properties in the boroughs and outskirts that are affordable as well as upcoming. You need to find the right location to ensure that your investment has the scope for a high return on investment. The London property market has become largely saturated to a point where the property prices are extremely high and the return on investment is not as high. That is why it is important to choose the right property in the right location to maximise your profit while investing wisely.
Be persistent and logical
Due to the high buyer demand in London, the seller can likely reject your offer even if you matched the asking price. This simply has to do with the laws of demand and supply! So if you are thinking of climbing the property ladder by investing in a property in London, you need to be persistent, methodological, logical and make sure that you do not lose hope. Try to understand the local price trends, follow London property news and you can even try your luck finding the right listing online!