Question: Will this property be a good investment?
Answer: The short answer is property is an investment which can go up or down, said James Turner of Knight Frank’s Hampstead office. Nobody can guarantee strong price growth; a smart buyer will take any such claim with a strong grain of salt.
In general terms, however, the trajectory of London’s property values has been upward for generations, so providing you are willing to stay in place long enough for prices to rise you should turn a profit.
Regeneration zones tend to see outperforming price growth, as do areas with new transport improvements on the horizon, and locations on the fringes of more expensive postcodes.
“Keep in mind what will attract people to the home in the future and the more there is close by — good schools, amenities, transport links — the better price you can command,” said buying agent Matt Turner, founder of Astute Property Search.
You can also opt for a property with potential which, over time, you can upgrade to add value.
Chris Cady, director of Dexters in Westminster, suggests avoiding homes with “endless structural problems” and instead look for places with potential to extend.
“These kinds of renovations can help bring about a healthy profit,” he said.
