What to look out for in your ideal real estate investment in London ?

Although real estate investment can be very profit-driven, I prefer somewhere I would like to live. I find that world-class education nurtures talents thereby creating a positive impact in the economy, diversified industry and facilitates cultural diversity. For instance, looking at a property that fits my budget range in London, I would consider carefully and deliberate by asking myself a few more questions

What are the major attributes of this property? In general, the answer is usually one or several of the following:

• Traditional affluent residential area
• Transport links
• Easy access to CBD
• Top performing schools and distinguished universities
• River Thames view
• Regeneration area

So, how do these factors complement and compromise each other? What can I give up so as to achieve my highest priority? What would I stick to firmly to make a better investment?

Properties that are closer to the CBD usually offers a better transport connection and a nice neighbourhood. In certain areas where there is permission to build high-rise buildings, the housing supply in the area will not fall relatively. Thus, I will focus on properties that are competitively priced.

According to Warren Buffett whom once said in a letter to his parents, “Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good results.”

If the premium is acceptable, I am willing to pay a higher price for a property with the river view. In my mind, river represents hope and life that stabilizes my emotion to deal with variables and crises in different situation.

If the property is surrounded by high quality education, it means the need for transport network could be lower. People prefer to live somewhere with a natural environment and a big open space. It doesn’t matter if the apartment is on lower floor, some buyers prefer a tranquil and comfortable environment with different plant, birds and butterflies. Without a doubt, the property located in traditional affluent residential area with top class education is deemed higher value. However, when we consider the scarcity of top-notch education, and the value of opportunities and changes brought by a good education, I still believe it is an investment I should not miss. I trust the future buyer will have the same thought too.

As for regeneration projects, other than considering the cost performance of the investment, I will investigate more about the corporate culture and business strategy of the developer. Why? It is because a meticulous regeneration masterplan can take decades rather than just a short, cheap and fast miracle. The developers are required to have an outstanding vision to conceive the change of the city and what citizens need in the future. They must adhere to the goals and quality. Perhaps there are so many construction sites around the area, which temporally affects the quality of the environment. However, we should envisage a long-term perspective, like 10 or 20 years, potential of the regeneration districts is the key, as the transport, commercial and amenities will be upgraded. In retrospect, we can look back at what Canary Wharf was in the 1980’s and how it is looking at the present. This is the inspiration we can take from history.