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UK and London Property Investment
UK property investment has been generating wealth for property investors since many years: UK property prices have risen by 410% between 1986 and 2006 (source: Housing Statistics Briefing, English Partnerships September 2006). Population growth, increasing inward migration, rising number of households, continued economic expansion and demand from international investors has been driving rapidly growing demand which chronically has been significantly exceeding supply of UK property.

Due to the major global financial crisis and cyclical downturn in the economy, UK property market is expected to will have corrected by 25-30% until the middle-end of 2009, providing exceptional opportunities for investors.

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Because of the credit crunch and property market meltdown, most of the development projects are put on hold which will severely disrupt supply in the coming years and significantly widen the chronic imbalance between supply and demand on the undersupplied UK, and especially London, property markets.

British pound has become cheaper by almost 30% for both Euro and US dollars since November 2007, and is expected to regain its positions in 2009-2010.

LaSalle Investment Management's ninth European Regional Economic Growth Index shows that London remains the best city in Europe for investment. The report ranks the top 91 European cities evaluating economic growth, the overall level of wealth, and the relative attractiveness of the local business market.

London property investment has been more profitable in recent years as compared to an average UK property investment as London property prices has been rising faster than average UK property prices. We expect London property prices to start rising faster than average UK property prices once markets started to recover.

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London Property sources deals in strategic UK and London areas, where a property price growth is expected to exceed an average UK property price growth. Moreover, financial leverage from off plan property investment or a mortgage multiplies the investment return.

Prices of prime Central London property increased by 18% in 2007, after 22% rise in 2006 (source: international property consultants Savills). The prime Central London property market has been the best performing area of London property market before the global financial crises hit the UK property market.

UK off plan property investment is a convenient and hassle free way to get exposure to the UK property market. An off plan property is a property before completion (sometimes before beginning!) of construction.

Local and international buyers can benefit from UK property investment with a financial leverage: they can either invest in an off plan property with a low deposit (5-15% of a property price until completion of construction, unlike 20-100% deposit in other countries), or they can get a mortgage up to 85% of a property value without a need to prove an income (the main criterion is a rental potential of a property).

When buying a UK off plan property, an investor usually pays 5-15% of a property price before completion of construction and therefore can benefit from a property price growth during a construction period with a financial leverage: if a property was reserved for 10% and its price went up by 10%, then the property investment returned 100% on invested capital.
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When using a mortgage, a buyer can take an interest only mortgage. This type of a mortgage requires the repayment of the principal only when a property is sold. With this kind of a financing structure, rental income from a property normally covers interest and property management costs. Therefore, if you paid for 20% of a property value yourself and used a mortgage to pay the remaining 80%, and if property values went up by 10%, the return on your property investment is 10/20=50%.

UK property investment is tax efficient for non-residents: they pay 0% capital gains tax on UK property investment.

UK property transaction costs (stamp duty, legal fees, etc) are lowest in Europe (5% in total on average).

UK property investment is safe as documents and transfer of funds are handled through regulated independent law firms, and the ownership title is registered at the UK's Land Registry.

Non-resident investors frequently buy UK property on an offshore company name to save tax, preserve confidentiality, simplify transfer of a property to heirs, etc

UK and London Property Investment: Our Services

London Property helps investors to maximize return on UK property investment by sourcing off plan property in high growth areas (regeneration areas which are well connected to fast growing employment centres) with long time to completion of construction (1-4 years) and low deposit (5-15%) until completion of construction.
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We do extensive research using publications of leading consultancies and development plans of local authorities (for example, "The London Plan", the strategic plan for the development of London in the next 15-20 years) to recommend areas for property investment. For example, we recommend property investment in Stratford (area of construction of the Stratford City and of Olympic Games 2012), Canary Wharf (the fastest growing business district of London), and Greenwich (strategic location relative to fast growing employment centres in Canary Wharf, Stratford and Greenwich Peninsular). In recommended areas, we strive to find the best property in terms of location, price, payment structure, and legal structure.

London Property offers medium- to long term UK property investment as well as shorter term investment opportunities. The latter involves buying off plan property long before completion of construction and re-selling it after 12-36 months with a potential annual return up to 100%. Obviously, an investor can keep a property by paying a balance upon completion of construction by her own means or using a mortgage.

Due to high volume of investment by our clients, we frequently achieve up to 15% discount off market value for off plan properties.

London Property offers a wide choice of UK property with prices starting from ?80,000 for 2 bedrooms newly built modern apartments located few hours away from London.

Identifying a right UK property investment is hard because it requires understanding of UK areas and their prospects for growth, market dynamics, and various financial and legal structures of transactions as well as having timely access to attractive projects. We at London Property will be glad to use our expertise and contacts in building and growing your profitable property portfolio.

UK and London property investment: more about our services

UK prime property investment
UK and London off plan property investment

Stratford property investment
Canary Wharf property investment
Greenwich property investment
 
London Property is the trading name of Keystone International Property Ltd which is registered at 15 Norway Gate, London, SE16 7TR under the Company No. 05926936. London Property offers UK investment property, UK prime property, and UK off plan property.