rise in investors looking to buy

<p><b><span style="text-decoration: underline;">Property finder reports big rise in investors looking to buy.</span></b></p> <p>Recently there has been a huge increase in interest from investors to buy residential properties. Home finder Garrington says that investors are keen on returns and care less about rent than they do about capital appreciation.</p> <p>Nicholas Finn, the director of Garrington has stated “that there is an undeniable surge in the number of investors looking to start, or add to, their London property investment portfolio. They have become disillusioned by other asset classes and have been biding their time before coming back into purchasing London property again.”</p> <p>Garrington has noticed an increase of up to 54% in investment inquires compared to a year ago, with a particular notable rise in the London area. Some of these buyers are new to the property market despite them being experienced traders and investors.</p> <p>There has also been an increase from the wealthy buyers to use mortgages in order to maximise their purchasing power.</p> <p>Garrington further states that they once had an overseas buyer with £650,000 to invest. The buyer used a buy to let mortgage finance to gear his investment so that instead of purchasing one apartment in cash, he managed to purchase three properties for around £500,000 each. The buyer is expected to achieve over 20% on £1.5million worth of property by using mortgage finance, instead of achieving 9% return on a £650,000 cash investment.</p> <p>Mr Finn further states that such buyers are sophisticated investors who already have a high net worth and income. They see property as a true asset class, hence from a tax liability perspective, their primary focus is the capital gains available in the London market rather than yield, however, as long as that yield is sufficient to service the debt, investors are able to leverage, therefore achieving higher gains from a higher value portfolio.</p>