There are seven classic and expensive mistakes when buying property in London.
Most people make at least one of them and those who make multiple mistakes in their purchase get hit hard.
One of the most common mistakes is thinking that by negotiating an “above average” discount on the asking price, you have made an astute acquisition. In fact, you had probably already blundered before the negotiation had even begun.
When I give talks about the London property market for private banks, wealth managers and law firms, one of the most popular parts is where I reveal some of the worst purchases.
Let me show you one example:
Sixteen years ago, a family acquired a property for £30m.
The guide price was £37.5m so they negotiated a 20% discount. Happy days!
In 2022, they tried to sell the property with a guide price of £19.5m with no success and had it for sale up until January 2024 by which time it had been reduced to £18m but still no interest.
Admittedly, most buyers don’t make this big a blunder. They massively overpay although not by 66+%. But would you be happy to overpay by 20% or even “just” 15%? Because plenty of buyers do (across all price ranges). Now, if that doesn’t bother you, then please don’t read any further.
But if you are like my clients – successful entrepreneurs, CEO’s, private equity partners, investment bankers, partners at law firms, hedge fund managers, etc – would it be unfair to say that you would rather find the best property your money can buy and acquire it for a good price?
And yet, this is the subtle mistake that traps most buyers: If you are only seeing poor or mediocre properties and then you find one that is slightly above average, you suddenly think you have found a gem, when in fact it is still nowhere near as good as the best of the best.
The property above probably seemed like a good deal when they bought it – a huge penthouse, large terraces, great views, 20% discount. But the location was shocking for this type of property as they are now discovering. It may have seemed they had a good deal, but they made three of the seven most expensive mistakes and paid a heavy price.
Your Budget Doesn’t Matter
Contrary to popular belief, you don’t only find best in breed properties at values above £10m – they exist in every area and price range. BUT…, you do need to put in the work to find the opportunities. If you don’t, then can you really expect success?
It stuns me how many buyers doom themselves to mediocrity, but then they don’t know what they don’t know. The question is what will you do to give yourself a competitive advantage over the herd of buyers, so that you have first refusal on the best opportunities?
If you think that scanning the websites and having property alerts is the answer, guess how many other buyers are doing the same thing. EVERYONE!
If you are planning to acquire a property in London, would it be a bad idea to take a more sophisticated approach?
The good news is there are tested and proven steps that you can use to find the best property your money can buy and acquire it for the lowest price possible.
I’ve written a book called The Insider’s Guide To Acquiring £1m to £100m Property in London that walks you through exactly what those steps are. These are the strategies and tactics I have used to help my clients for the last 25 years.
I’m happy to send you a complimentary copy in the mail. Simply let me know if you’d like one by emailing jeremy@mercuryhomesearch.com or calling 02034578855 (+442034578855 from outside the UK).
Whatever you do, I strongly advise you to arm yourself with high quality information, be that from me or elsewhere. Because the worst thing you can do is go into battle with a plastic sword and helmet. A wise man once said, “He who underestimateth his opponent getteth battered.”
Do not underestimate the task ahead of you.
