Property Revaluation in London

As set out in previous articles one of the five aspects that makes investing attractive is property revaluation in London.

Revaluation means the increase in the nominal value of a capital asset over time, by virtue of automatism or the trend of certain indices. In the more specific meaning of property revaluation, it means the result of market index appreciation, resulting from the supply/demand ratio.

The supply/demand ratio expresses a trend over a given time period that is the consequence not only of actual market trends, but also of direct or indirect exogenous factors such as government incentives.

A fundamentally important consideration is that real estate investment, unlike other types of investment, should be viewed from a medium- to long-term perspective.

The graph below shows that over the last 15 years, real estate in the London metropolitan area has increased by about 105 %.

Data :

In fact, if we consider the average value of a property in the London metropolitan area, we start from a value of £232,422.00 recorded in January 2005, to an average value of £476,588.00 recorded in January 2020.

This comparison of values makes the investment not only remunerative but also safe as property appreciation in London is constantly increasing and this explains the fact of the existence of leveraged products, such as taking out a mortgage with the payment of interest only, leaving the capital share at the end of amortisation. The same capital share can thus be paid off with the margin resulting from the revaluation.

Next we will analyse the regulations governing eviction procedures applied to real estate leases.

The aim is to be able to answer all the questions raised by investors during the analysis.

All the above data are taken from and can be verified at: http://www.gov.uk/check-house-price-trends

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