Do you want to start your London property investment journey but aren’t sure where to start? Then take a look at some of our top tips for investing in the London property market.

• Do your research

There are so many different things to consider when investing in property and it is important that you take the time to do some in-depth research. When conducting research, you should consider house price trends, average rental yields, schools, amenities in the area and the demand for housing. 

Property Deals Insight tools provide you with detailed information on house price trends by location as well as average rental yields and much more. You can also use Property Deals Insights deal finder to research the best deals available in areas of interest.

• Build relationships with Estate Agents

In 2021, there is high demand for properties and most properties barely make it to estate agent’s websites before they have been snapped up! Our advice is to build strong relationships with estate agents in the areas you would like to invest. Many estate agents offer a notification service you can register for, that will alert you of any new properties that suit your requirements. Local estate agents are great people to build relationships with as they will have in-depth knowledge of the local area and can often provide the insight you won’t be able to find online. 

• Make sure your finances are in order

When you first start investing in property it can be very easy to lose track of your finances. Property investment mortgages often require larger deposits than a standard mortgage, which can sometimes catch out those who are beginning their property investment journey. 

When researching mortgages, ensure you are getting the best rates and speak to a specialist mortgage advisor to find the best deals available. It is also important to remember that there may be other costs involved in an investment that you have not considered, so ensure you have an emergency pot of funds for anything unexpected.

• Include tax in your calculations

As a property investor, you are liable to pay tax. This is often an expense that those new to investing forget about. Getting a tax bill when you have already spent a considerable amount of money can turn your investment journey a little sour. That’s why it is important to seek advice regarding property investment taxes. Including all expenses in your initial calculations will prevent you from having to delve into your emergency fund.

• Consider your ideal tenants or buyers

Deciding who you would like as your ideal tenants or buyers will determine the location and criteria you have for your property search. There are several options when it comes to tenants or buyers for your property and of course, this will depend on whether you decide to buy-to-let or flip the property.

Families

If a family is your ideal tenant or buyer, it is important to research schools in the areas you are looking to invest in. Schools will be high on the priority list for young families along with after-school activities and green spaces. Property Deals Insight includes a school catchment tool to help with your research. In a post-pandemic world, gardens and outdoor space are also likely to be on the priority list for families and, although gardens are harder to find in London, a property with outdoor space will instantly appeal to families with children.

Young professionals

If you are looking to rent or sell to young professionals, looking at flats and apartments that are close to transport links is a good idea. Young professionals are also likely to want some restaurants and bars nearby for their social life. There are so many different areas that are a great option in London for young professionals; to narrow it down, read our other blogs on the best places to invest.

Students

If you are considering investing in HMO (house in multiple occupation) property for students, it is, of course, important that the areas you are considering for investment are within easy reach of universities and colleges. If universities are within walking distance that is even better! As with young professionals, students will also want bars and restaurants nearby as well as cafes and coffee shops.

• Don’t forget about property auctions

Auctions are a great place to find properties to invest in and if you are new to the world of property investment, auctions may be an area you have not considered. Remember when you are buying property at auction to use your head, not your heart! Stick to your budget and don’t let emotions take over. Property Deals Insight also has an auction listings tool, separated by region or postcode, to make finding your next investment a breeze!

To find out more about all the tools on offer from Property Deals Insight, visit our deal finder page.