Posted on: January 12, 2020

Why Invest outside London?

Investing outside of London could actually be advantageous if you are interested in picking up rental property.

London is home to some of the highest priced real estate and some of the largest rental values across the UK but what many landlords are beginning to discover is that it’s simply too expensive to hold investments in the core of London.

Here are some of the top reasons why it could be wise to invest outside of London:

Less taxation:

60% of London-based landlords were looking outside of the city in the year 2011 because of the increasing taxes on London landlords. Tax bills on large residential properties in London could equate to over £24,000 each year whereas the same size home outside of London would only commit a tax bill of £5330.

Less upfront costs:

The average home in London could cost well over £480,000 on average whereas the average property price on the outside of London is substantially lower. Buying outside of London could allow an investor the chance to buy in earlier on or even own multiple properties because of the lower price point. It can also be easier to get access to a BTL or buy to let mortgage for hands-free investing outside of the city.

A faster return on investment:

Buying in one of the hottest areas outside of London could lead to a much faster return on investment. In 2017 for example, there were several areas outside of London that saw nearly a 5% growth in value on three-bedroom flats within just one quarter of the year. Many areas outside of London are experiencing a fairly steady 8% growth.

Cheaper contractors:

The process of flipping homes or even getting improvements for rental properties is much easier outside of the city as well. Renovations with local builders can be done in a hands-free fashion when working with a company like ours and the labour is often considerably cheaper than what a person might pay for a contractor in the city as well.

If you are interested in investing outside of London contact our team today. We can make recommendations on the best new properties that you could invest in outside of the city.