Real Estate Investor Magazine South Africa May 2013 | Page 35

“VALUE INVESTING TECHNIQUES FOR BUY TO LET PROPERTIES IN LONDON”
Investing in London can be an expensive affair. Many South African investors have been caught out in
the past with over priced and difficult to tenant properties with many of these purchased during the last
property cycle in 2007-2008.
Anthony Doyle, director of UK-based property company Propwealth, has a clear strategy on investing in
London. “ Its not rocket science, says Doyle. “ As investors ourselves we follow eight simple steps and
”
advise anyone you wishes to enjoy property investing in London to do the same.
”

EIGHT KEY FACTORS WHEN INVESTING IN LONDON
1. When one invests in UK buy to let property especially in London, you need to first look for value. Always buy at a
discount initially or buy off plan for completion in two years or more. The prices of the property will be set at current
market values so you will get incremental capital growth until you actually take transfer of the property.
2. Stay well clear of existing London properties as your competitor will be the emotional or first time buyer who will
push up the price. London property prices are back to the same level as before the crash of 2008.
3. Buy in areas of regeneration. London space is at a premium so keep a look out for new train stations, transport hubs
or local councils spending on neighbourhood upgrade schemes.
4. The property must offer lifestyle options that will attract good tenants. Concierge services, in-house gyms, and
convenience shops on site all increase rental income.
5. Watch your gross yields. Don’t touch anything below 5% gross as you will then need to contribute every month after
general expenses like levies and any mortgage bond repayments.
6. Always allow for management and collection fees of around 10%. You will be investing long distance and don’t want
the hassle of day-to -day issues.
7 Invest to hold, not to flip or sell on. Property is a slow wealth creation process so has a 10-15 year outlook in London..
.
8. Lastly, trust but verify everything anyone tells you, from rental incomes to regeneration plans.
A current development that has good inherent value, in a
regeneration area and has very strong tenants demand with
5% to 6% yields is:

PRIME PLACE – CENTRAL GREENWICH LONDON
This imaginative mixed-use scheme right next to Greenwich
train station will bring many benefits to the local community and
result in a considerable economic investment in the town centre.
It covers a two-acre area of 181 high quality new homes as well
as a 104-bedroom hotel. As part of the regeneration scheme 650
square metres of space for start-up businesses will be made
available. There will be an extension to the existing Greenwich
West Community Centre with further education and administrative space. Lifestyle aspects include a health and fitness club, a
convenience food store as well as a retail facility and a pedestrian-friendly boulevard. Completion of the development is expected to be mid to end 2014 and prices of the units start from
£ 260 000 for a one bed flat.

The directors of Propwealth are in South Africa for Investor Meetings on London and Liverpool from
5 to 17 June 2013 and can be contacted via their website www.propwealth.co.uk