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Advice on the purchase of TWO London Zone 1 apartments/penthouses as both an investment and personal residence. (budget ~ 60-70m/$85m)

Hello, I would appreciate a mature opinion on buying 2 london apartments please. One I intend to purchase as a place where I'll permanently reside and the other as a possible investment choice (high possibility of renting). Budget for both is ~ 70m pounds/$85m. The thing is, what are the long term (35+ year) effects of doing this? Would BOTH apartments appreciate in value, especially in the very centre of Zone 1 London? What do you recommend as a wise appreciation-focused investment, apartment or house? (one is concerned with the purchase of only part of a building whereas the other is the whole building + land) As an example, let's take in consideration these 2 listings: Thank you very much for your time! G.

Asked on Aug 28 2013, General in London | Report content

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  • Both good apartments, seems like a lot of money to be spending in Trafalgar square/ St James's. It depends what annual return you expect on the rental, these are not classically the best rental locations and the prices being paid are unlikely to match other investments on return. who is your buying agent?

    Answered on Aug 29 2013, Report content
  • The 50m apartment is just pure speculation, but I'm serious about purchasing the 15m trafalgar one (possibly). My concern is if I happen to sell the apartment in 50+ years, will it have appreciated in value compared to the purchase price? (disregard inflation) Thank you.

    Answered on Sep 2 2013, Report content
  • 50 yrs is a long time in any economy. I would presume yes there would naturally be an increase in value but not as big compared to other/better property investments £50m is too much to pay for an apartment in London expecting to make money on it. What are your service charges, what is maintenance and refurbishment every 5-10 yrs going to cost? and Trafalgar square although very central is also an unusual spot to pay even £15m. there are so may risks. 'will Trafalgar square be completely pedestrianised in the near future' - possibly? What sort of neighbours are you likely to have? commercial and embassies don't make for the best neighbours on residential investments. If you are serious about spending that sort of money and are looking for a return of any sort, I would take advice from a buying agent. I wouldn't be advising my clients to spend those figures in those locations for long term investment. and in 50 yrs? its too far in the future to contemplate. Best you explain your strategy to an advisor who knows London markets before diving in.

    Answered on Sep 3 2013, Report content

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