increasingly the domain of the wealthy. Buyers would need to be among the top earners in order to qualify for the mortgage and afford the mortgage repayments which makes buying a home economically accessible to only relatively affluent households.
Overspill demand from London may be driving house price growth across the south of England but the largest pressures remain in the city where growing numbers of people are living, working and studying
Consequently, the underlying demand for private rented accommodation is likely to continue to rise which will present ongoing opportunities for investors in buy-to- let properties. Property values, and more importantly increasing values, are always a factor of supply and demand.
Based on expected continued demand for accommodation in London, forecasts for the next 5 years( such as one by Savills Research), show a range of property appreciation of between 15 % and 21.5 % over the next 60 months. This combined with a strong currency and stable rentals to secvice bonds makes for an attractive property investment.
The specific appreciation achieved will depend on the specific location and features of a property so buying a property that will have strong tenant demand and at the right price will be a key factor in achieving and possibly exceeding the growth forecasts.
There are numerous regeneration projects in London which tend to be radical interventions to transform an area, requiring substantial economic contribution from both the public and private sectors.
We have found that acquiring properties in or that benefit from regeneration projects at the right price have shown particularly good growth. This is supported by research done by CBRE which indicates that properties impacted by regeneration projects are performing better than the norm.
RESOURCES
Inventure Property
Developing Future Cities
2 – 3 November 2016 CTICC, Cape Town, South Africa
EXPAND YOUR COMMERCIAL PROPERTY PORTFOLIO IN THE TOP 10 AFRICAN CITIES BY ATTENDING THE AFRICAN REAL ESTATE SUMMIT THIS NOVEMBER
Why attend?
• View city plans and development launches from Africa’ s top cities
• Meet with investors, developers and government officials
• Become the preferred solution provider for cities across Africa
• Learn from industry experts and key decision makers in African real estate
To discuss your company’ s participation or to secure your seat, please contact Stephan Herman on + 27 21 700 3598 or stephan. herman @ spintelligent. com
Invited Host City: Promotional Agency: Organising Partner: African Event Specialists:
Premier Media Partner: www. african-real-estate-summit. com