Last year, many international investors had to put their property plans on hold.
Given that the situation in the UK is improving, and the government is hoping to loosen travel restrictions in May, now it’s time to think about opportunities in London.
Making an investment or establishing a home in a new country can be exciting and nerve-wracking at the same time. But it’s not unmanageable, if you keep things in perspective. The key is to be able to hold the big picture in mind while focusing on the critical details.
Big city, small world
London remains a truly global capital.
People will continue to come here from around the world for the opportunities and amenities. In the last two decades it’s become a financial and cultural centre of gravity, attracting artistic endeavour and commercial investment alike. As Dr. Johnson famously wrote in the 18th century: ‘When a man is tired of London, he is tired of life.’
When you look a little closer though, London is a patchwork of towns. Every neighbourhood has its own unique character.
As a consequence, the real estate market itself is fragmented. Working with numerous parties searching for a property can get complicated. At the same time, it may feel like a small world, as if everyone knows each other. That can be a good thing for clients, in terms of trust and discretion, but also a challenge for those not privy to inside information.
One UK market characteristic that has been more evident in the last year is the number of properties that are trading ‘off-market.’ Usually at the higher end, vendors choose not to publicly advertise on estate agents’ web sites or online property portals. Instead, transactions are done via referrals from established personal connections. A retained adviser can plug you into this informal network.
Near and far
The standard top-three factors—location, location, location—still apply to finding the right property.
But the pandemic has reshaped the patterns of our lives. ‘Work’ isn’t a place any more. Commuting as we’ve known it may never resume. Families are spending more time under the same roof.
Perspectives have changed so that we value our immediate surroundings as much as proximity to other attractive places. In London, celebrated addresses like Belgravia and Mayfair are still marquee names. And certain post codes in the country will always be in high demand.
Yet the market is cyclical. Over the last year, there was an exodus from city centres to the country. But the allure of the city will be re-ignited once bars, restaurants and theatres re-open.
Your kind of space
As always, your investment criteria depend on your particular needs and expectations. There’s something for everyone in London—from the pied-à-terre in a serviced building, to the private mews house, to the luxury flat in a brand-new development.
Regardless of your preference, it’s almost a given you’ll want to factor in the possibilities of having outside space and room to effectively work from home.
Head and heart
Once you have chosen to establish a base here, you’ll need to listen to two inner voices. Your logical side calls for objective analysis. At the same time, it is hard for anyone to set aside their feelings. Most people have a vision of their ideal property, and it’s okay to fall in love when that special place feels like ‘the one.’
A bit of imagination makes that link between head and heart, analysis and inspiration. An advisor, a partner you can talk to frankly, will help you join the rational, business-like elements of a transaction with the passionate, emotional factors to give you confidence in your decisions.
Establish a plan
Whether you intend to live or invest (or both!) in the UK, you should be pro-active. A strategy should include certain criteria and objectives that serve as your guiding principles during the process.
The exercise (you can even write it down) helps solidify and align your financial ambitions with your family goals. A place to enjoy the cosmopolitan lifestyle or entertain a large number of guests may not suit the requirements of university-age offspring.
As is the case for any major financial transaction, it is important to take professional advice. Working with a specialist on a strategy will prove valuable in the long run. It can save you time, help you make the right choices, and prevent costly mistakes.
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