"Taylor is looking into expanding her property portfolio in Europe and London is one of her preferred destinations. She loves being in London, just because it's such a vibrant city and if she had a base there, it would be easier for her to travel around Europe when she's touring," a source said.

Taylor Swift
Taylor Swift. Pic/Santa Banta

"She's also a realist who knows a successful pop career can sometimes be short-lived. She wants to invest the money that's pouring in from the amazing success of 'Red' into real property," the source added.

Last year the singer bought a home in Nashville for USD 2.5 million. She also reportedly owns a huge penthouse apartment in the city, as well as a USD 3.3 million home in Beverly Hills. Swift also bought a USD 4.9 million 13-room property in Hyannis Port, Massachusetts in August after spending time in the area with her now ex-boyfriend house Conor Kennedy, 18, and the property is said to be across the street from his grandmother's home.