You don’t have to be an economic theorist to recognise that the current political paralysis gripping the UK isn’t, on the whole, great news for those looking to invest in the real estate market.
The amount of questions raised by the present uncertainty is startling: what are the prospects and risks of investing in this sector? What property should you focus on – commercial, residential or industrial? How to correctly assess the profitability?
Without the use of a soothsayer, it’s difficult to ascertain which way the political winds – Brexit and all – will blow in the future and what the ramifications will be for the real estate market. Praise be, then, for London-based wealth management experts, Imperium Investments.
The risks of investing
Bringing together a team of seasoned professionals boasting over 25 years' experience in banking, finance, real estate and other sectors, Imperium Investments is headed up by financier, investor and entrepreneur, Dmitry Leus. The company specialises in advising on low-risk commercial, residential and industrial real estate investment. Its services include analysis of real estate, assessment of the current situation and risks and prospects, the definition of recommended investments and the calculation of profitability.
So, in these turbulent times, where should canny London-based investors be looking? What areas are best protected from political volatility? Dmitry Leus has a few ideas.
“There are a couple of projects that I consider to be the least risky from the point of view of development,” he says. “The first is low-cost housing, worth between £270,000 and £350,000, which an average working family can afford.
“The second very promising direction, in my opinion, is storage facilities. With the swift development of online trading, more and more retailers need high-quality warehouses with convenient logistics. This demand will continue to grow regardless of any political or other external factors.”
Advice for investors
For those unwilling or unable to invest millions in a project, Dmitry Leus and his team suggest coming together with other investors – between five and 10 – to fund the construction of a residential building for seven-to-ten apartments.
He explains: “The yield of such an object can be from 5-8 per cent (from rent) to 15-25 per cent (from sale). A similar joint investment approach can be applied to commercial real estate.”
So if you’re unsure about your next investment in our great capital, maybe it’s worth contacting Imperium Investments for some specialist personalised advice.