(Here's is the Type of EMAIL that I have recently been receiving in Hong Kong.)
60k GBP Buys Prime Central London
Central London (W1, W2, W9, W14, WC1, SW1, SW3, SW6, SW10 & SE10) is the only place to buy and is where the smart London money is going.
You will have also seen dozens of UK property exhibitions marketed in Hong Kong every week and you need to be very careful.
New builds in London are generally associated with oversupply, poor capital appreciation and disappointing rental returns
- particularly when the rental guarantee(s) run out:
Overseas buyers account for over 70% of new build sales in London and it's because new builds don't sell in London (as local money is too smart to fall for new build product) hence it ends up in Hong Kong exhibitions where some buyers may not know the pitfalls.
Notwithstanding this, think about who pays for these weekly exhibitions at 5-Star Hotels, the champagne, the canapés, the flights, the friendly sales staff, the lawyer, the tax advisor and the rent guarantee(s) - YOU DO - it's buried in the price.
If you're looking to enter the UK market, buy what the locals buy - period properties in Central London.
For example: I have a very bright ultra-modern, well portioned studio in a portered building with a long lease, located in the heart of Chelsea, SW3.
Is located in Chelsea SW3
Is newly refurbished
Has a long 98 year lease
Has a separate kitchen, separate bathroom, and residential parking (by separate negotiation)
Unlike new build, has a proven track record of capital gain at 10%+ per annum
Genuinely rents locally with a 5% yield without the help of some overinflated rental guarantee hidden in the price
This property can be purchased for £299,999 with up to 80% funding.
All you need is GBP 60,000 deposit and the (proven) rental income of this property pays the mortgage.
My response: "How many sq. feet is that property, please?"
From their website, this one looks interesting:
Pimlico, SW1 : £245,000
Pimlico, SW1 : 2BR on three floors
£245,000 / 1,423 = £ 172.2 psf
generous reception room with Juliet balcony and excellent views, sleek open-plan kitchen with integrated appliances, master bedroom with Juliet balcony, built-in wardrobe and chic en suite shower room, good-sized second bedroom, and elegant bathroom.