Property Investment In London Can Still Give A Good Yield… But Where To Invest In London Property?


– I’m starting to see
lots of opportunities for property investment in London, where the deals really stack up. But I believe you do need to take a slightly different approach. And so today, let’s talk
about where to buy in London, and also what kind of deals you should really be looking for. (relaxing jazz music) Hi, my name’s Anthony Law
from Your First Four Houses, and I teach people how to build
a small property portfolio that generates a great income for them so they can give up the
day job if they wish, because they’re now financially free. If this is your first time here, be sure to subscribe to the channel and click that bell notification icon so that you don’t miss out on any of the free content I give
you each and every week. Over the past two decades,
the population of London has been growing by roughly
100,000 people a year, so there’s obviously, therefore, a huge demand for pretty much
every type of accommodation. But also, obviously, it’s not a cheap place to invest (laughs). If you live in London, I’m
sure you already know that, and there’s currently some real concerns about whether the values
of properties in London are gonna be dropping. So, could this mean a
fantastic opportunity for you, to get out there and grab
some really great deals that are gonna give you
a really good cashflow? So today, I wanna share a few ideas that are gonna help you find
those really great deals, and let’s start off by considering where to buy in London. I honestly think that the location that you ultimately choose should really depend on the
strategy that you’re following. So, for example, if
you’re looking at single (mumbles) type units, I honestly think you’re gonna wanna find the bests yields or the best return on the
investment that you can for the investment that you’re buying. So maybe check out the
Portico Yield Heat Map. This is a fantastic little tool, and it will show you,
really quite accurately where you can get some great yields, although you should always
do your own due diligence. And I’ll put the link to this
in the description box below. Or if you’re looking for HMOs, honestly, you need to
focus on, I would suggest, where there is a tremendous demand, because in some areas of London, the demand is absolutely huge (laughs). As an example, I was
just looking at Lewisham. It’s just one particular area, and there’s currently 146 rooms available, but there’s nearly 4400
people looking for rooms. Honestly, that’s just mad! Huge demand means less viewings, it means less voids, and of course, you’re gonna be able to probably get a better income on that property. Other obvious things to
consider would be things like child support links in the area, the local employers, especially
if you’re looking at HMOs. Facilities around the property
that you’re looking to buy. Also, maybe you could consider looking for commercial opportunities. Rather than residential, could you maybe invest
in some office space or some warehousing, or maybe some shops. The cost per square metre
can be considerably less than the same cost per square metre on a residential-type property. Or better yet, could you maybe convert a commercial property into residential? Now, there’s some real advantages
to this type of strategy. So you could maybe convert
a shop into residential. There’s some planning
and some tax advantages. These include VAT and stamp duty, although speak to your
accountant about this. You’ve gotta get out there
and walk the streets (laughs). I know I talk about this a lot, and one quick example, I was recently up in Barnack ’cause I’m originally from Potters Bar, which is just outside the M25, and I was in Barnack, and I
was walking around Barnack, and I found some fantastic opportunities, like, loads of them,
just by walking around and looking for potential properties where I could add real,
real tangible value. Now, I’m not suggesting that any of these were actually on the market at the moment, but when you find a place
where you can clearly add some substantial value, make sure you’ve got some
little leaflets with you, ideally handwritten, I
would always suggest, though I don’t like using yellow paper. I know a lot of people do that, I just use normal white paper, but they look like they’re handwritten, and you’ll wanna go and put those to the property that you’re
actually thinking of buying. Now, obviously, probably it’s not gonna
be on the market now, but will they be selling a
little bit down the line? Maybe so. But you’re then gonna put that
property onto a spreadsheet, and you’re gonna follow-up, follow-up, follow-up, follow-up,
follow-up forever (laughs). Just keep writing to that property, and at some point down
the line, they will sell. If you do this enough, you
may have loads of properties on your spreadsheet, and ultimately, they will start to generate some really good potential deals for you. Also, if you’re walking
around the streets, A, look for empty houses, but also don’t assume, when
you walk past a potential site, and it’s maybe got some signage up there but no one’s working
on it for about a year, don’t assume that somebody’s
actually doing that deal. Make your own inquiries. Don’t just sort of walk
on by and say to yourself, “well, obviously somebody’s “already doing that particular property,” don’t assume that. Download the title deeds,
write to the owner, and maybe start an
interaction with the owner, because maybe you can get a fantastic deal where others have just walked by. Work with existing landlords. Goodness knows there is so
much negativity out there at the moment in the
landlord type community. Of course you are probably
fully aware of this. Tax changes, legislation changes, changes in demand in some areas, many landlords, to be really honest, they’re kinda throwing the towel in. This could be a huge opportunity for you, and there are a number of ways that you can help these landlords to create a win-win deal, a deal that works firstly for
them, I would always suggest, but also works absolutely
fantastically for you. I don’t wanna get to heavy here, but this could be a
once-in-a-lifetime opportunity to connect with those landlords who are really unsure about what they wanna do moving forwards. Maybe they’re gonna think
about retiring early, so you’ve got to take
a whole load of action to connect with these. Lastly, can I encourage you
to think outside the box. What do I mean by that? Well, there’s a number of
things we could talk about here. But what about maybe taking that house, and converting it into two or three flats? I’ve done that. It can create a fantastic
return on investment. I’d also encourage you, in London, to maybe start thinking
a little bit smaller. There are some amazing
properties out there, or tiny homes, as I call them, and I love tiny homes (laughs) with some really amazing design ideas that have been incorporated into them to make these tiny homes
work fantastically well. But ideally, you wanna try and get a place that’s gonna be bigger
than 30 square metres, because if it’s less
than 30 square metres, then in many areas it can
become unmortgageable. Also, learn how to use creative solutions and find and help truly motivated sellers. This is a fantastic way to
get real equity in properties, but also create some really
great win-win solutions, and it’s certainly how
I started out investing. If this type of strategy interests you, can I suggest clicking here and checking out my free mini-course, because I cover this extensively, and it’s completely free. Could you maybe buy with friends who are also in the same kind of boat? Maybe you sort of pool your resources. But if you’re gonna do
this, please do it legally, please go to a solicitor,
get it all drawn up properly with a contract. A handshake simply isn’t good enough. Also, while we’re talking about
thinking outside of the box, I’ve gotta ask the question, “do you really have to
invest in London at all?” Don’t get me wrong, there are obviously lots of opportunities in London, that’s the kind of point of this video, but if you’re not tied to London, are there maybe some better
deals outside of the capital? (relaxing jazz music) In my completely free
online property mini-course, I can teach you how to put
a small property portfolio that generates a great income for you, but importantly, without
needing to put in big deposits. Simply click the link
here to find out more.

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