A third of my clients in recent years have been looking to acquire property in London for investment purposes, and as such, knowledge of the intricacies involved in finding the right property, in the right location, at the right price, has never been more important.

Traditionally in a buoyant market, investors have taken all kinds of risks, buying unseen property in secondary locations and previously untested markets. Since the beginning of the recession, the London market has become incredibly challenging, and it is now crucial that investors ‘buy right’ and resist the temptation to take risks.

Central London postcode areas

The choice of the London postcode is arguably the single most important consideration in the buying process. If budget allows, the appeal of fringe areas pegged as ‘up and coming’ should be resisted in favour of the more established addresses such as Mayfair, Belgravia, Knightsbridge, Notting Hill and Kensington. Although it is true that these prime locations come with a higher price tag than their lesser-known neighbours, it will always be money well spent.

In a strong market, properties in fringe locations will sell, but may take longer to do so than their counterparts in established addresses. However, in a weaker market these kinds of property will quickly become less appealing as serious buyers are inclined to wait for something with a stronger investment guarantee. [Read more…]