If you’re looking to invest in luxury London property, you may be wondering just how much you’ll need to save. The cost of property in the UK’s capital is naturally higher than the rest of the country. So, for luxury properties, you can expect the initial deposit to be exceptionally high.
Below, you’ll discover a rough guide on how much you’ll need to spend to live a more luxurious London lifestyle.
How much is luxury London property?
The price of luxury property will largely depend upon the area and the size of the property. If you’re looking to buy the very best property, you’ll struggle to find even just a student flat for less than £1 million. On the other hand, you could choose to rent a luxury student flat for approximately £200 per week.
Luxury four-bedroom homes in the capital frequently sell for no less than £6 million in Greater London, while terraced luxury homes will set you back at least £2 million. So, what kind of deposit would you need for such expensive properties?
The average deposit is roughly 20% of the asking price. In 2016, the average cost of a London property was £500,000. This meant, first-time buyers needed to save a £100,000 deposit. So, if you double that and manage to find a luxury London home for £1m, you’re looking at a £200,000 deposit.
Of course, it will depend entirely upon your own individual circumstances and the mortgage provider you choose to go with.
Prices could fall thanks to Brexit
Interestingly, some experts believe the cost of luxury London property, particularly in prestigious areas, could fall by as much as 50%. So, if the figures above are a little too far out of your price range, in a couple of years you could find luxury property in the capital is much more attainable.
There’s also ways in the meantime, which can help you to save money on luxury property. Online estate agents like Hatched, offer much lower prices than high-street agencies. This is because their fees for sellers are much lower, which means the price savings are passed onto the buyer.
There’s certainly no shortage of luxury London properties available. While the cost of the deposit is a concern for many buyers, by choosing alternative channels such as an online estate agent, there are ways to cut the costs.