The Need for Agility in London Real Estate Investments
It goes without saying that when you’re looking to invest your money, it’s important to balance the potential returns against the risks.
While many have made good money in things like the .com boom and cryptocurrencies, for example, these trendy investments can often become a bubble that’s just waiting to burst.
On the other hand, for the cautious investor, property remains one of the best places to invest your money.
Still, that’s not to say that any investment in UK real estate is a guaranteed win, especially if you’re buying in London. While property in the British capital remains desirable, the changing nature of the London markets requires an agile approach from investors.
What is Agility in Business?
To begin, we must clarify what an agile approach in business means.
At a basic level, readers from the business world will already be familiar with the term. But, our aim here is to be concise and go deeper, especially with the property market.
In brief, agility means being able to adapt to change quickly; perceiving risks and threats; and adapting your strategy to accommodate them, thereby gaining an advantage over your competitors.
But what does that have to do with real estate investment? Glad you asked!
At Fox Agency, we strive for agility in the real estate investment.
Why is Agility Important in Real Estate Investment?
Agility is hugely important in real estate investment for a number of reasons.
To begin, the real estate markets all over the world are in a constant state of flux. This means that areas can become more or less desirable (and their value can be directly affected) by what’s being built around them.
For instance, areas where property value was once modest can become gentrified while residential areas that were once popular can also lose their value if the area loses a part of its infrastructure like shops, restaurants and other amenities. In short, the whole value of property is directly connected to the surroundings and hence, the public interest in the area itself.
So, the value of real estate is bound to fluctuate from one time to another.
Therefore, an agile approach is important in real estate investment because it allows you to spot which areas are “on the up” and which face potential threats, causing the value of their property to drop or stagnate.
To put it openly, agility could be what saves you from channeling your funds into a money pit. More directly, agility can help you realise when the time is right to cut your losses on a property and transfer your funds to a property that will work harder to generate a better return.
In case of London, agility becomes even more important.
The Changing State of London Real Estate Market
One may think that, surely, investing in property in London is always a safe bet, right? After all, it’s the nature’s capital and a thriving hub of commerce and industry?
Well, it all depends on the type of property. Right now, for example, London property prices are falling at their fastest rate in a decade with £2 billion wiped off asking prices across the capital with the prime market hit hardest.
In a narrow mindset, this creates a harrowing image. However, there’s more to the story here.
The Need for Agility in the London Real Estate Market
There are a range of factors affecting the fluctuations in the London market.
For instance, the economic uncertainty around Brexit is one such factor but there are a number of other economic and political factors which can affect the stability of a London real estate investment.
This includes interest rates, the availability of borrowing, economic growth within London’s boroughs and good old staples like supply and demand are all key factors in forecasting tomorrow’s property prices.
While London markets are showing early signs of recovery, an agile approach is still necessary to separate the great investments from the potential money pits. So, only by keeping a close eye on the factors that drive property values, i.e. maintaining an agile and proactive approach, can investors be sure that their money is working as hard for them as possible.
This is where we come in. With agility being our central philosophy, we make sure that your money is invested in the right place at the right time.
To learn more, get in touch with us today.
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