However; more recently, flipping has received some negative press. Articles are bouncing around in newspapers that claim that while the investors are still buying off plan in their droves, there simply aren’t the buyers out there to make it worth their while. Some articles even claim that new developments such as Nine Elms are like ghost towns, with estate agents twiddling their thumbs waiting for the influx of overseas buyers to take units off their hands.
Such speculation has arisen due to experts prophesising a downturn in interest from China. Chinese buyers have been injecting significant money into London’s economy (approximately around 7.5% of all properties bought in the last five years came from buyers from that part of the world). However, while some parts of the market are slowing, others, such as the luxury property market, are still in high demand by those unwilling to settle for anything but the best. Projects like Nine Elms show off the best of British design in developments that cater for both business and family life.
It would be fair to say that all investments carry some risk, regardless as to whether you’re buying shares in a company or buying a property. But time and time again it has been shown that London is a safe bet – whether you’re buying off-plan or buying a property to rent out, you can expect a return on your investment. When it comes to the practice of flipping it’s important to remember a few hard and fast rules:
- To start with choose an internationally renowned developer, there is no substitution for a good reputation regarding quality and expertise.
- Get in there as early as possible, this way you stand to make the most profit for little money laid down.
- You want your property to appeal to as many people as possible, both buyers at home and abroad. This means taking into account the local area and its amenities. In particular look out for international schools as these will help sell the property to overseas buyers.
As with any project it’s important to do your research, flipping can be very profitable if you choose the right development. It’s crucial that there is the demand, but that not too many people are clamouring to get in on the ground floor. Remember, it’s not just beautifully-fitted apartments that appeal to people, the surrounding area is important too. Great transport links are always a bonus, along with green spaces, great schools and riverside views. When you put all these things together you’re more likely to appeal to a larger number of buyers, which allows you to sell the property more quickly and at greater profit.
Garton Jones has already sold more than 100 apartments in Embassy Gardens alone and has negotiated many more sales deals for vendors with properties in Nine Elms. We are, therefore, anticipating the unprecedented number of enquiries to continue. To find more about any of the developments in Nine Elms contact Garton Jones today.