If you are meaning to invest in residential property in London, you have surely noticed a trend in that foreign buyers are purchasing properties in the area. This is making it difficult for young people in London to find properties that they can afford. If you can get your hands on low-cost properties, you can secure a niche that caters to these buyers.
Young couples and single Londoners want to live in the city, but they are finding it hard to buy good properties. The cost of the most desirable properties continues to rise because people from other countries are coming in and offering more money than a first-time buyer can afford. When you look at specific neighborhoods, you will see that investors need to spend more to secure brick and mortar properties.
It is unlikely that this trend will end anytime soon. Because of this, you may want to consider investing in areas that have limited foreign investment. This means that the cost of properties is lower so that you can buy properties and resell them without having to do a significant markup. There are some neighborhoods where you can secure properties for a small investment, make repairs and still sell at a decent profit.
When you are able to sell and rent to those who are trying to secure their first property, you are providing a service that many real estate investors are ignoring. This is important to consider because many experienced investors are more interested in high-value properties that can turn large profits. If you want to specialize in first-time buyers, your profits may be a bit lower, but your potential to turn over more real estate is higher, ensuring more frequent earnings.