How Much ROI You Can Expect with New Build Houses in London

How Much ROI You Can Expect with New Build Houses in London

 

When looking to invest, the ROI (return on investment) is one of, if not the most important you should factor into your decision.

This point is even more applicable when talking about investing in the real estate industry which has the potential for much higher returns than other forms of investments, but also can lead to significant losses.

Furthermore, when talking about real estate in London, the aforementioned point can be amplified ten-fold. Properties in London can go for eye-watering price tags, which means the risk and reward is much higher. 

In this article, we will be discussing what ROI you can expect to get from new builds in London, and how to maximise profits from investing in the real estate market.

Buying To Let May Not Be the Best Idea Right Now

 

The prices of properties in London seem to be increasing every single year, which leaves many wondering how long this unprecedented growth can remain. 

Although, the same cannot be said for the rent rates in London. This means that even though the prices of properties are rising exponentially, the costs of renting have stayed the same.

This is bad news for people who are purchasing properties in order to fill them with tenants. The high prices of homes paired up with the low renting charges make the ROI incredibly low for people who rent their properties. 

property valuation

Selling Can Be Extremely Lucrative 

 

Like we mentioned previously, the properties in London are constantly apricating in price. This has led to London properties being extraordinarily expensive. But for those who can afford it, it also means for a profitable and relatively safe investment. 

The returns on Investment for buying and selling properties can be between £10,000 – £100,000, depending on both the location in London in which the property resides and the length of time you are willing to hold your investment.

Of course, in order to reap the benefits of this, you will already have to have a large amount of excess capital in order to pay the incredibly high prices that Properties in London go for, as well as not requiring the capital for the near future in order to allow enough time to pass to get substantial returns on your investment. 

Not only can investing in a new build property in London be incredibly lucrative, but it's also one of the safest investments you can make right now. London properties continue to rise in price every concurrent year, and it is likely this trend will continue to take place for a long time. 

This is due to a multitude of factors, but to sum it up, the growing population in London compared with the low availability of properties are just but a few of the plethora of reasons for the rising prices.

 

Conclusion

 

If you are looking to invest in a new build in London, the ROI can either be extremely high or incredibly low depending on your strategy. 

Buying to hold and then sell can bring with it some of the best ROI rates you can find out of any market or industry, and that’s without mentioning the fact that it is also relatively safe. 

In contrast, buying to let may not be the best decision right now. The ROI is low when compared to previous years, and it is unlikely this is going to change for at least the near future. 

Of course, either strategy is going to take a lot of capital to get started with in the first place. Although, if you are able to spare some extra capital and are will not need it for the near future, then investing in new build Properties can be mind-boggling lucrative while also being one of the safest investments out there.

If you want to get in on the action yourself and are looking at investing in a new build in London or any property in London for that matter, feel free to take a look through our website. 

We have all the latest property listings including new builds, and we can give you expert advice about investing in new builds in London.  



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