The perspective cities of Great Britain for investments
The real estate of Great Britain for many investors sounds precisely "concrete gold". Since 2009 housing cost in London grew by 65%, and by 2022 experts promise another 20% of growth. According to the British agency Halifax, for the last 20 years the cost of square meter of the residential real estate of London grew by 432%.
All this is fine, but there are reefs. First, borders of the same London are limited, there is not a lot of earth, and there are practically no free territories under construction. And secondly, data for the last 2 years are not so hospitable and the prices of elite housing, on the contrary, show recession.
Builders and investors find methods of creation of rather "new" objects for sale, but these are rare and rather exclusive options which do not enter the public market. Generally, secondary housing which cost is very high is presented at the market. Let's tell, in the same London, the "average" price tag makes 400,000 - 1,000,000 euros how to you?
From there is a conclusion, will be able to invest in the London real estate not everyone, but it is dangerous to rush towards smaller and country towns too. Illiquid housing meets even in Great Britain. So, a question interesting and relevant, let's try to understand what cities it is possible to call perspective for investment.
London.
After the made decision on an exit from the EU, experts prophesied sharp reduction in cost both in the lease market, and in the market of sale of housing in London. There was an assumption that investors will take a waiting attitude and at the expense of it the prices will begin to fall sharply.
In the sector of elite housing of expectation were repaid and for 2017 falling of the prices for 3.7% in London and for 2.6% at the level of all Great Britain was recorded. In 2018 the prices can drop by 4%. However, the British chambers of commerce expect that in 2019 it is possible to count on some stabilization of the market.
Housing of a mid-price segment feels much more surely and the prices keep small growth, approximately for 2% annually here.
Kind of conservatives did not fear Brexit consequences, in Great Britain forces, finance and business of such number of men of weight and the large companies are concentrated that the situation will be regulated anyway.
Now let's a little more attentively look at locals. Londoners are young, successful people with an active position. They work hard, often and easily change the residence, receive high salaries and are ready to pay big lease for the apartment near office.
As for purchase of the real estate for themselves, Londoners think of it at more mature age and, as a rule, long prepare for it. As it was already told earlier, housing cost extremely high and many local look after objects on the outskirts of the city. Researches of the English portal of the real estate showed that average expenditure for lease of housing in London make 1130 euros a month and if to speak about such areas as Chelsea or Kensington, then here the prices will be 3 times higher, about 3300 euros.
Investments into the London real estate are saddened by the stamp duty introduced in 2014 which lays down a burden on shoulders of owners of housing worth more than 1 million euros. For comparison it is possible to give an example if till 2014 for apartments at the cost of 2 million euros, you pay 100,000 euros, then now this amount will be 153,750 euros. But against the background of triumphal increase in prices about which we spoke above similar costs can seem a trifle. From here it is possible to draw conclusions: capital investments to the real estate in London will involve large costs from the investor, but after 5-10 years all of them can pay off several times.
It is important to understand, the greatest profit can be got from housing purchased in busy, financial areas. Where people work, spend free time and resolve the vital issues. Yes, the prices will be high here, but also return corresponding. As an alternative it is possible to consider the suburb: Bekonsfield, Sunningdale, Greyt-Shelford, but what percent of successful Londoners will be ready to spend on the way from the house one work more than an hour, it is difficult to foresee. It is known that already now many are ready to sacrifice a quadrature for the sake of closer arrangement to office.
One more interesting method it is profitable to make investments - reconstruction. In London there are a lot of family, well-planned areas where there are ancient houses long ago demanding renovations. As a rule, it is cottages and townhouses of the Victorian era. Similar housing does not appear on the real estate websites, it is realized at auctions and there to get, it is necessary to find the competent partner having sufficient experience.
Benefits of old houses - the price. Cottages are on sale on average about 400-500,000 pounds. Add about 200,000 more on reconstruction and voila here, you own an excellent object in the decent district of London which can be sold already absolutely at other cost.
Birmingham.
The city is located in the center of the region the Western Midland, allocated with the status of "city" and takes the second place in Great Britain by the number of inhabitants. More than 1,000,000 people live in Birmingham. It has the greatest popularity in the world thanks to the jewelry art built by local masters to perfection. Here often there take place thematic exhibitions. Besides, the city is known as industrial and education center of Great Britain.
The real estate in Birmingham costs much. Being the large business center, it a little in what concedes to London. Locals receive high salaries and are ready to remove qualitative housing, is closer to work. The average price of monthly lease varies about 1,000 pounds.
Buying the apartment in Birmingham, it is worth paying attention to proposals of builders and already at a stage of construction to begin to earn money. The difference in the price, after end of an object, will be impressive, add income from leasing here and receive an excellent financial instrument for receiving a passive income.
Manchester.
One more perspective object for investments is Manchester. In 2017 the Ministry of Transport of Great Britain approved construction of the high-speed railway route "High Speed 2" which can become the most expensive in the world. This decision underlined and enhanced the status of the city already actively best-selling at investors. the first loan without percent
Having successfully overcome a crisis stage, the city began to gain strength and grow. Higher level of life, impressive career prospects, steady growth of economy attracted to the city of active residents of the neighboring cities at the expense of what in 2011 growth of the population was recorded by 19%.
The dynamic picture speaks about growth of opportunities for life and earnings, than skilled entrepreneurs use already now. The real estate of Manchester is in huge demand, and its most part is in a premium class. As well as in London locals do not hurry to buy up square meters, preferring lease.
According to the experts demand for the rented housing will only grow in Manchester. Having sight-seen the city, the attentive analyst will note the number of construction cranes, tirelessly workers for the economy benefit. The large-scale project on construction of the high-speed route not only, demanding investments and work. The quantity of jobs constantly increases, Manchester grows and develops, and those who implement ambitious plans of financiers and politicians, also need housing. So, buying apartments in Manchester for leasing, keep in mind - for the next ten years problems with search of tenants will not be.
Results.
At the beginning of 2018 the large developer company decided to count the total cost of housing in the large cities of Great Britain. In TOP-10 London, Bristol, Glasgow, Birmingham, Manchester, Edinburgh, Nottingham, Reading, Leeds and Sheffield entered. Proceeding from it, it is possible to make the list of the cities to which it is worth paying attention if you look for stability and you appreciate safe investments.
For those whom rapid growth of the prices interests, other selection - the cities with the highest increase in prices in 2017 will interest. Here the sequence was other - Sheffield (5.63%), Glasgow (5.38%), Manchester (4.49%), Leeds (4.20%), Birmingham (4.08%).
Figures speak better than words therefore draw conclusions and ask us for the help. We will help to make a right choice in terms of finance, but at the same time we will consider also your individual preferences.
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