Published on January 19th, 2021
Despite the ongoing pandemic, the London property market continues to hold its own. This is thanks to its well-established reputation as a financial capital of the world, as well as its tourist attractions, universities and theatres.
With increased interest from overseas investors, as well as the recent stamp duty tax relief initiative, many buyers are snapping up investment properties. Current data shows that 2020 London rental yields clock in at an average of 3.7%!
With approximately 9,304,000 people sharing its streets, London postcodes can vary greatly in terms of ROI when it comes to buying investment properties. Knowing exactly where to invest can become an intimidating minefield of facts and figures!
Estate agents work with the client’s desires to find the ideal property. However, they aren’t investment experts, and while they might find you that dream townhouse in Kensington, they won’t necessarily be able to advise you on how to turn a profit.
This is where Property Sourcing Agents come into play.
What Is Property Sourcing?
Property Sourcing companies are agencies with local property databases. They usually operate within specific postcodes, meaning they have local knowledge and inside market scoops that other agencies often won’t.
They also often have exclusive databases of sellers and developers – many of whom aren’t listed with standard estate agents.
Not only that, but property sourcing companies will usually offer investors full-stack services. These include scouting and viewing properties, negotiating prices, surveying, renovations and resale or tenancy agreements.
Why Is Property Sourcing A Good Idea?
Property sourcing agents are an excellent option for investors. They’ll begin by helping you clarify exactly which investment strategy is best for you and your budget.
- Are you buying to let or buying to sell for profit?
- What’s your timeline and how long can you wait for a return on your investment?
- If you’re buying to let, are you going for residential properties and tenants, or a commercial property with business tenants?
A property sourcing agency will help you make an informed decision and ensure that your money works as hard as it possibly can for your portfolio!
Another reason that property sourcing agencies are a good idea is the range of services they offer. If, like most investors, you’re richer in money than you are in time, the process of generating R.O.I from property can be a long, exhausting haul.
Property sourcing agencies will handle every aspect of the process, with minimal involvement on your part. Of course, all important decisions will be run by you before action is taken. For the most part, though, you’ll be able to take a hands-off approach.
Finally, another great reason to invest via a Property sourcing agent is that they’ll have in-depth local expertise and sellers. They may have partnerships with developers that get you premium access to new properties. They’ll also know exactly which postcodes will generate the best ROI for the specific investment strategy you choose.
If you’re looking for more insights into the London property market, why not head over to Pearl Lemon Properties? They’re an information hub for buyers and investors where you can read expert opinions and recommendations.