18th February 2017
I’ve just finished looking at a property with an agent, the price isn’t cheap at £2.5m. The property is a duplex, with its own entrance, and is facing a beautiful green square.
Four people are interested in buying this property, and one contract is already out on it at full asking price. What’s the attraction? It certainly is not the economic environment, neither is it the price bracket at this level as the market is soft and a little unstable. So why the high interest?
Very simply it’s a rarity to get a property like this with such features of high ceilings, a private entrance, and access to a square which no one seems to use. This is probably the closest you will get to living in a house. You will have Hyde Park a few minutes’ walk away and a huge square as your front garden. Perfect for a family and dog lovers.
It’s simple demand and supply. If you want to live in a square you have a very limited supply in Central Locations.
Even in a soft London market, with the uncertain economic environment, here is a situation where if the current buyer does not move fast there is a real chance he will be gazumped, perhaps even by us. For this is a beautiful property and in a strong market I see it attracting a very solid price to the tune of £4m, maybe even higher. It’s the only one in the road with its own private entrance.
The above situation shows the fundamentals of the property market do not change, whatever the weather. There is a finite supply of stock and the demand comes from all corners of the globe. So, when a rare diamond surfaces, unsurprisingly buyers will come out of the woodwork.
Clearly someone on an average wage in Westminster of £36,000 could not afford this. A large chunk of the demand is currently foreign money, as the current softness in the pound means there’s a discount when purchasing London property. The Knight Frank Report confirms the top property investment destination for high net worth individuals in 2016, was London, ranking above New York and Paris.
If you do not have this kind of budget you still can invest in Central London, without compromising on the most important mantra in property, which is location. This can be done through Codeinvesting at https://www.codeinvesting.com, where you can invest from as little as £1,000 and still jump onto the property ladder.
This is very convenient solution for the following reasons. Firstly, you can come in low. Secondly, it avoids the need to obtain a mortgage, which is becoming more and more cumbersome, and you need a larger deposit due to the increase rental cover. Thirdly, there are tax changes which will mean for a high rate tax payer you will be unable to offset the interest element from the rental. This will force many BTL investors to start selling.
Suresh Vagjiani
