Why buying a property to let in Shoreditch is a great investment

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Why buying a property to let in Shoreditch is a great investment
While there has been a notable change in so many areas of London in the past two decades, few areas have matched the change or focus that has been placed on Shoreditch. This is an area that has developed a name that almost stands for the gentrification and development of an area. All across the country, and indeed Europe, cities and towns are regularly being called the new Shoreditch; in honour of the area which welcomed the artistic and creative, only to find the market explode around these developments.

There is always going to be a question about the future for Shoreditch and whether it has peaked. This is the wrong way to view the market. Yes, Shoreditch has changed and the people who have previously bought in the area are not going to be the people who are looking to buy in the future. This isn’t necessarily a bad thing for an investment opportunity though. Shoreditch is going to remain an exciting and vibrant area to live in and the wider area is on the up. Add in the increased connectivity with Crossrail and Shoreditch is going to remain at the heart of exciting times in London.

The fact that the market has matured and wealthier people and businesses are looking to move into the area will change things, but Shoreditch will benefit from a maturity that will pay off for people engaging in the buy to let market.

As the City of London grows, Shoreditch will benefit
As more businesses set up in and around Shoreditch, and the increasing sprawl of the City of London brings employees looking to stay in an attractive area close to their work, Shoreditch is going to remain at the centre of London areas that are worth investing in.

Ventures like The Stage, a £750m development, and The Fusion, look set to ensure that Shoreditch continues to evolve and entice more people to the area. There will be a lot more property options available for people to choose from in Shoreditch but there will also be an increase in the number of entertainment, leisure and dining options. With businesses also finding new spaces and outlets which will allow them to be at the heart of a vibrant and bustling community, Shoreditch is guaranteed to be a key component of present day and future London.

Shoreditch offers steady expected rental yields
With respect to expected rental yield, Shoreditch is seen as a steady area in the heart of the English capital. For the E1 postcode, a one bedroom property creates a return of4.7% rental yield and a two bedroom property offers an expected rental yield of 4.24%. A three bedroom property provides an expected rental yield of 4.06% and a four bedroom property provides an expected rental yield of 4.44%. There is even an expected rental yield of 4.27% for a five bedroom property in the EC1 area of London.
The E2 postcode area provides an even more attractive rate of return for investors. The EC2 postcode area provides an expected return of 4.76% for a one bedroom property while a two bedroom property provides an expected return of 5.08%. There is a 5.64% expected rental yield for a three bedroom property and a four bedroom property offers an expected rental yield of 5.04%. A five room bedroom offers an expected rental yield of 4.94%.

If you are looking to invest in Shoreditch then you will need to speak to a Shoreditch Estate Agent, Nelsons are Estate Agents in Shoreditch. Call us now on 020 7613 1798.