Londoners are looking for investments outside of London

The numbers of people who buy real estate outside of London, but still live in the city were increasing in the last months. This becomes the easiest way for people to get on the housing ladder.

Research of Property Investor Show has found that there are a lot of people who cannot afford a London Home. Therefore, they are buying properties elsewhere and starting to operate on a buy-to-let basis. And while having their own share of real estate, investors continue to rent in the capital.

A good example of scenario mentioned above would be - Luke O’Neill. Ladd bought a £155,000 two-bed house in Suffolk and rented it on buy-to-let basis. Luke shared his insights: “The rental yield for the property is give percent and the monthly rent goes towards the mortgage on the house and it also leaves me with a little extra.” These additional funds are being used to build up a deposit so he can eventually buy his “dream” home in London.

Manager of Property Investor Show, Nick Clark, explained that the practise was a good way for people to get on the ladder before prices bounce back.

Real estate prices in London are higher than elsewhere, which leaves all “future” investors looking outside of London. Especially when Department for Communities and Local Government revealed that this year in July the average price in the city of London was £343,182 compared to the average of England of £224,207.

Numbers are clear and force you to think carefully before jumping on the property ladder.

News source: http://news.hotproperty.co.uk/