Property Investment Chelsea

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Here at Salboy, we are dedicated to developing residential properties that contribute to the prime locations in which they are placed. We fit out each of these homes with an array of modern, practical amenities and facilities intended to catch the notice of potential homebuyers for the right reasons. Investors are able to then acquire these homes directly from us, the developer – in the process cutting out the usual middleman, the estate agent, and consequently the fees they would customarily charge for this kind of transaction. However, these homes are predominantly exactly that: homes. 

This is why, before putting pen to paper on a deal to develop or redevelop a site into an appealingly fully featured residential development, we scrutinise the surroundings at length to verify that these indeed have the prerequisite idyllic character to attract budding homebuyers. All of this helps to explain why we have often chosen Chelsea as a setting for homes developed under our watch. This West London area already has an indisputably prestigious image, having garnered an affluent populace and evidently proved a magnet for keen architects and homebuilders. 

Average property prices in Chelsea have traditionally hewed high, lending Chelsea a strong air of exclusivity. While this situation has thrown up a few barriers for both investors and homebuyers aiming to snap up property in the area, we can help both of them to break the deadlock. This is because we are already highly experienced with developing investment properties elsewhere in the UK – including Greater Manchester, Leeds, Nottingham, Newquay and various London areas. High quality has come as standard in all of these properties we have built.

This has been predominantly due to our very hands-on approach, where we not only assemble accommodation in collaboration with our build partners but also plan, deliver and ultimately sell it, with investors and buyers able to purchase homes in a hassle-free fashion. In order to deliver developments of the highest quality, we furnish each and every property we build to ensure that whoever enters the building – whether as an owner, occupier or visitor – is quickly impressed by what they see. 

In cities across the UK, we not only develop residential properties but also provide financial support for both residential and commercial developments. If you are an experienced developer and have an exciting idea for a potential new property development in Chelsea, we invite you to register for full details of the property development funding we offer

If the prospect of buying or investing in Chelsea property has piqued your interest but you remain unsure exactly what path you should take on this journey, contact us to find out more about developments and opportunities we offer.

street in chelsea

How Is the UK Property Market Thriving?

The UK property market has soared in the post-lockdown era, with all UK regions having seen house price increases during 2021. London, in particular, saw house prices rise by 2.3% – though homebuyers’ priorities are evidently shifting as a result of the COVID-19 pandemic. By this, it seems that, with many people now working from home more often than before the pandemic, homes outside the usual vibrant hives of property-buying activity have grown in appeal – especially as these homes can often be more spacious than those in prime areas. 

Before the COVID-19 pandemic struck, some property investors left the buy-to-let market due to tax and legislative changes that shrunk their profit margins. However, the pandemic has arguably created a ‘perfect storm’ of opportunities on which buy-to-let investors can now capitalise. 

Though the UK population is continuing to grow, the supply of homes is failing to keep pace. This imbalance between supply and demand looks likely to linger for the long haul – potentially leading many UK residents to consider renting rather than buying a home for now. This is an attractive situation if you have been considering investing in UK property – whether for the first time or to add to an existing property portfolio – but felt for a while that you couldn’t confidently predict the future trajectory of the UK property market.

When marketing a rental home to a young family, for example, there is a good chance that, if they do agree to rent it, they will stay there for the long term – especially if the local area is abundant in good primary and secondary schools and other amenities that would clearly benefit children.

Then there’s the commercial property market, where the rise of hybrid working – where employees spend only a portion of their working hours in the office, with the rest spent at home – has led many business owners to consider relocating their teams to relatively compact offices. This, as well as the earlier mentioned trends, bodes well for you if you are seeking to snag an especially flexible and lucrative property deal. Buying an office building, for example, could enable you to rent out spaces to various businesses – and let them scale their operations up or down without having to vacate the building.

These businesses could be inspired by the example set by many big-name brands – including Jimmy Choo, Giorgio Armani and Yves Saint Laurent – that have established a presence in Chelsea and helped to make it an even more attractive place for people to live and work. This isn’t even touching the surface of major employers based just outside Chelsea – such as Heathrow Airport, which is based in the London Borough of Hillingdon, and the exhibition centre Olympia London, which has attracted various conferences and sporting events to South Kensington.

chelsea stadium

How Chelsea Is Becoming an Investment Hotspot

London has long been an attractive source of investment opportunities on account of various factors – including the UK capital’s relative immunity to geopolitical shocks and conveniently central position as a trading hub between the East and West. Hence, London has tended to be seen by investors as something of a ‘safe haven’ for much of their property portfolio. Consequently, large parts of the central London property market have been sewn up, with many owners of properties here unwilling to offload them.

This has led many UK buyers seeking residential properties to look increasingly away from prime central London and towards areas closer to the capital’s outskirts. Places where relatively affordable property opportunities abound include Battersea, Wandsworth and Fulham.

Ironically, though, one place that has tended to be overlooked by these buyers – despite being adjacent to Fulham – is Chelsea. This is largely due to the area’s longstanding reputation as a prime location in the property market, leading many buyers to quickly rule out looking for property there. This is a mistake on their part that presents a promising opportunity for you as an investor. While some of London’s traditional property hotspots have seen property prices rise by nearly 30% in the last seven years, those prices in some parts of the SW10 postcode area have stabilised or fallen.

So, now looks like a good time for you to snap up Chelsea property before prices start rising again. Of course, Chelsea has long held strong appeal to homebuyers in any case – not least due to the wealth of retail outlets on King’s Road from high-end brands such as Harrods and Prada.

Chelsea is also resplendent in green spaces – including Albert Bridge Gardens, Chelsea Physic Garden and the grounds of the Royal Hospital Chelsea, where the Chelsea Flower Show is annually held. Then there are Holland Park and Hyde Park, which both lie just outside Chelsea. Hyde Park merges with Kensington Gardens, which once belonged to the nearby Kensington Palace. This royal residence, located in the Royal Borough of Kensington and Chelsea, is officially occupied by the Duke and Duchess of Cambridge, but its State Rooms are open to the public.

Chelsea is also well served with public transport connections. The Sloane Square station of the London Underground is just outside Chelsea’s eastern border, while the Gloucester Road tube station is to the north and provides convenient access to all areas on the District, Circle and Piccadilly lines.

All of this helps to make Chelsea an especially attractive place for buy-to-let investors. In the Kensington and Chelsea area, rental yields are said to be 2.7% as of 2021 – and, as Imperial College London is mainly based in South Kensington, you could potentially rent out to students locally. Finally, with the Earl’s Court area – the Kensington district linked by name to the now-demolished Earl’s Court Exhibition Centre – now in line for residential redevelopment providing 51 new homes for rent, Chelsea property investment is looking like an increasingly attractive prospect.

row of houses in chelsea

Investing in the UK’s Property Market with Salboy

We certainly attach strong importance to the economic value of our developments; indeed, we originally established Salboy as a lender rather than a developer. However, financially fuelling other companies’ property developments inspired us to take a more direct role in projects like these. Our emphasis on the financial aspect remains strong at every stage of a property development project – from the concept stage right through to when we sign off on the fully assembled building. We aim to spur economic growth in the wider cities or regions where we develop properties. Therefore, we are always careful to situate developments in areas that, though attractive to investors and buyers, also have what we deem as-yet-unrealised economic potential.  Chelsea confidently fits this bill due to the area’s inclusion of top-drawer attractions and amenities. However, when perusing various Chelsea properties available to buy, you should think meticulously about whether to pour your money into a new-build, off-plan or refurbished property. New builds are in high demand – partially due to the Government’s Help to Buy scheme, which is intended to financially assist households in purchasing new-build homes. Furthermore, new builds each come with a 10-year warranty and are environmentally efficient to run. Off-build properties, meanwhile, are new builds that remain under construction. Investors are often drawn to off-build properties because of the discounts frequently applied to them, meaning that the property can quickly rise in value once finished. However, it is recommended that investors who do take the off-plan route buy the property from a developer with a track record of building reliable properties, lest unexpected issues are later evidenced once the property is completed and someone has spent significant time in it. Refurbished properties are typically older buildings that have recently been revitalised – whether through being modernised or instead restored to their original splendour. Older properties can have a certain character that is often lacking in new builds, not to mention be strong candidates for further refurbishment. Refurbished properties often attract investors who are eager to repurpose period properties. However, in doing so, they could run up costs potentially cancelling out any financial gain they are likely to make from selling the property. Risks like this one underline the importance of partnering with a thoroughly reliable developer if you are contemplating buying investment property in Chelsea, where potential buyers or renters could turn out to be especially picky when attending viewings of the property. As a developer, we are committed to ensuring that sustainability permeates every aspect of our property planning and development process. This leaves every property we develop not only set amongst glorious greenery but also cost-effective to run when it comes to energy expenditure.
residential street in chelsea

Things to Consider when Building Your Investment Portfolio

Such is the appeal of Chelsea’s property market, you may not want to stop at acquiring just one property in the area. In adding multiple Chelsea properties to your investment portfolio, you can help yourself to strengthen its financial resilience against national or global economic turmoil. However, finding success with a multi-property portfolio would depend on you carefully researching, before you purchase a given property, various factors that could affect its value. One factor you should prioritise is location, as you wouldn’t be able to change this of any property you buy.

You should also think about the quality of the property itself. In buying a property that hasn’t been thoroughly vetted for quality beforehand, you would risk inheriting unresolved problems from the previous owner, such as leaking pipes, water-stained walls or poor insulation. While you could pay to rectify such issues, doing so would eat into the profits you stand to gain from selling or renting out the property. As we build investment properties afresh, investors can feel confident when buying them, knowing that stringent quality control has been put in place.

While on the subject of your potential profits, those could also end up somewhat compromised by charges and fees – such as stamp duty – that you would inevitably have to pay during your property investment journey. So, you should be careful to factor in all of these costs that could accumulate.

Of course, investing in anything is inherently risky, as you can never be entirely certain how any specific property’s value could rise or fall over the coming years. You can, however, create at least some luck for yourself by putting together a detailed plan for how you aim to achieve your goals. For example, if you anticipate going down the buy-to-let route, you could be encouraged by the steady supply of students the Kensington and Chelsea area attracts year on year due to the local presence of Imperial College London’s main campus.

However, if you are more interested in taking up a buy-to-sell investment strategy, you should think about marketing properties to people who would be inclined to perceive them as permanent – rather than temporary – homes for themselves. Families and young couples could be in this category.

There’s also the possibility of acquiring commercial property – a move that would come with risks not applicable to residential property investment. Whether you intend to invest in residential or commercial property, though, heeding local market forecasts could assist you in making wise decisions.

Why Choose Salboy?

Naturally, every home should be as unique as whoever lives in it. However, we also know that many people like to feel ‘at home’ as soon as they move into a residential property. For this reason, we diligently furnish all of our residential properties with prestigious amenities and fittings. Each and every apartment we build in Chelsea is fully furnished, with an array of furniture carefully selected on the grounds of both its practical comfort and aesthetic appeal. All of this makes it easier for potential tenants to envision themselves living in the apartment. 

The long-term consequence of this is that you can expect our buy-to-let properties to remain consistently popular with tenants and so see high occupancy rates. One major reason why is that, when planning a new development, we always thoroughly research the area in which it will be sited. This allows us to clearly discern exactly what local homebuyers and tenants seek in a home. We routinely research, for example, their lifestyles and careers as well as what demographic segments they fall into, which enables us to make these homes truly meaningful to prospective residents.

Buying a Chelsea residence directly from us also means that these buyers do not have to deal with an estate agent at any stage of the home-buying process. We will handle any queries or paperwork involved, and we prioritise delivering a high level of customer service. 

The end result of all of this is a smoothly streamlined transaction process that removes much of the stress that would usually come with buying a property via an estate agent instead. It also saves the client money that they could then spend on personalising their new home. Investors, too, can benefit from removing an estate agent entirely from the equation when opting to buy a Chelsea property directly from our team. The money saved by investors along the way could assist them in maximising the returns they amass from investing in property.

Across the UK, we have already built over 2,400 homes – and the unique features we have chosen for properties include heated swimming pools, high-tech cinema rooms and on-site gyms. However, all of the features we do include are chosen for how they add genuine purpose to the development. Here at Salboy, we don’t deal in gimmicks: all of the property developments that take shape under our leadership are precisely tailored to the needs of the local community. To discuss how you could start benefitting from one of these developments, you can email us at info@salboy.co.uk.

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