Luxury apartments to buy in london | In Cap Gemini’s World Wealth Report, London is ranked as the number one city for the wealthy.
Consequently, the luxury property market in prime central London is an incredibly international and cosmopolitan market. Unfortunately, it is also rigged against buyers so it is very easy to make an expensive mistake unless you use certain strategies and tactics.
I will get back to these in a second but first…
Why is London the number one city in the world for the wealthy?
- It is a major financial centre
- It is a major cultural centre
- London and the UK has excellent schools and universities, e.g. Eton, Harrow, Oxford & Cambridge. The London School of Economics, etc.
- It is relatively safe
- It is politically stable and has a clear rule of law in which property rights are protected
- London is a lot of fun with exceptional restaurants, bars, theatres, clubs and shopping
- It is easy to reach being a major transport hub
This makes the luxury property market in prime central London very competitive but as a buyer you are at a disadvantage because in London and the UK, the estate agents represent sellers, i.e. they are legally obliged to achieve the highest price possible for the owners.
You are not their client, so their focus is not to find you your ideal home or investment. No, it is to sell any of their clients’ properties to any of the buyers on their books for as high a price as possible. And yet, the majority of buyers turn to the agents for advice. Does this sound like the best way to get information on how to find the best property your money can buy and negotiate the lowest price possible?
How much is a luxury apartment in London?
One of the questions I am most often asked is what is the average price of a luxury house or apartment or the average price per square foot?
Unfortunately, this is an incredibly dangerous question because averages can be hugely misleading especially when you consider the huge number of factors that can affect the price of a property. These include:
- The quality of the address
- Which floor an apartment is on
- The additional facilities in the property
- The length of the lease
- The ceiling height
- The layout
- The quality of the finish
- The orientation of the garden or terrace
And this is far from an exhaustive list. So, while a property may look good value compared to other properties in the area and even the same street or building, it can still be overpriced because it does not meet certain criteria.
And anyway, why would you focus on average? Surely, you want to acquire the best property you can find and the negotiate the most favourable terms possible.
Is buying a flat in London worth it?
But is buying a property in London worth it? Well, historically prices in London have outperformed the rest of the U.K. Of course, there will be times when London underperforms. The last few years being an example, but over any extended period of time, luxury London property has been a good investment if you buy well. But you need to focus on what I call “best in breed” properties that will outperform the market.
As an example, research by Savills showed that “Between 2005 and 2013 the top decile of properties in Prime Central London increased in price 190% while the bottom 10% increased 63%”. Now 63% isn’t bad when one considers that 8 year period includes the Great Financial Crisis, but would I be wrong to say that you might prefer 190%?
To be honest, you will not achieve 190% in every area and price range in prime central London, but in area and price range there are properties that will outperform and underperform. You need to make sure you understand which is which.
Can a non citizen buy property in London?
Important Note: As you probably know, non-UK citizens can acquire property in London and you don’t have to be a cash buyer. There are lots of UK and international banks that will lend to non-UK citizens who wish to acquire luxury property in prime central London (which also shows that the banks regard it as an incredibly safe and reliable asset).
However, it is really important that you seek tax advice from a firm with a proven track record on helping people acquire property in London. This is vital unless you enjoy giving money unnecessarily to the UK government and in some instances you can forfeit hundreds of thousands and in some instances millions if you get this wrong. So, please seek good advice (if you would like introductions to reliable experts, please contact us by emailing dee@mercuryhomesearch.com or calling 02034578855 (+442034578855 from outside the UK).
Is now a good time to buy a flat in London?
Of course, you may be asking yourself the other big question: is now a good time to buy? While luxury London apartments and houses have been good investments over the long term, it is essential you understand that it is not “bulletproof”. There are times when prices will fall although the falls in London are much shorter than for the rest of the UK and prices rebound much faster.
And what I am about to say will probably frustrate you as it is not a simple answer, but some properties are more resilient than others depending on the market and as I don’t know the type of property you wish you acquire or when you are reading this article, so any answer I give here could be highly misleading.
I did warn you that my answer might be frustrating, but does that make it any less accurate? It is very easy to deal in averages and give broad brush answers to questions about property, but do you really want to make a multi-million pound decision based on generalisations?
Contact Mercury Homesearch
So, if you have specific questions about buying £1m+ property in prime central London or would like to receive a free copy of my book, The Insider’s Guide To Acquiring £1m to £100m Property In London, which reveals the strategies and tactics that I have been using for over 20 years to acquire some of London’s finest homes and investments for the clients of Mercury Homesearch, simply email dee@mercuryhomesearch.com or call 02034578855 (+442034578855 from outside the UK) and quote “Luxury Apartment in London for Sale: Expert Tips on Finding the Perfect Home or Investment”
Best regards,
Jeremy
Topic | Luxury apartment in London for sale, luxury apartments to buy in london
