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MANAGING DIRECTOR,
PROPERTY HUNT
Q.Dear Russell, I am looking to invest in a London property. Is central London still the best place to buy?
A.It certainly makes sense to invest in prime central London property because at the end of the day it is all about supply and demand. Yes, you will pay a high price per square foot but it is all about the rental yield.
You need to remember that location is extremely important and that young professionals are prepared to pay more to be closer to where they work. This will give you a much better return in the long term.
From a purely long-term point of view, you’ll also get more capital growth – the latest surveys suggest that a lot of central London is still bucking the trend. Places like Bayswater are good – W2 is a good postcode where you can get a bit more for your money.
Kensington & Chelsea and central areas just south of the river also offer good invetment opportunities.
Q.Dear Russell, we both work in the City and are looking to buy a family house. What would you advise?
A.When you buy a family home, the property of your dreams is simply not enough. You also need to research the schools in the local area and see which catchment area your prospective properties lie in.
For example, a lot of people who work in the City and have children tend to live in south London suburbs such as Clapham, Tooting and even Balham. These are well-connected to the City – via the Northern line – and Canary Wharf. Another area which is well connected is Blackheath.
The schools tend to be good but bear in mind that you will pay more for streets which just fall inside the catchment areas of sought-after schools. Also check the waiting lists and find out whether your child has a realistic chance of getting a place at this school. Make sure that the catchment areas haven’t recently changed – this can happen frequently and you may get caught out.
If you are after space and a garden, then Balham and Tooting are probably your best betsin terms of price per square foot. Russell Hunt is managing director of Property Hunt, a search agent for London and the Home Counties. www.property-hunt.co.uk