Investing in property in the UK is increasingly popular with people from other parts of the world, Middle East, Chinese and North American buyers, among others, have become some of the most prevalent investors in the UK, thanks to the strong returns, growth in prices, and resilience, that the UK market often shows.
Even through financial crises and political uncertainty, UK property continues to perform well, which is why it is popular with those from overseas, who cannot find that stability elsewhere. But if you are investing in UK property, there are some top tips you need to know.
Here are the 7 most important things to consider before you invest in UK property as a foreign investor:
- Knowing what you want from the property purchase
- Financing the investment
- UK taxes and other legal requirements
- Currency exchange factors
- Choose the right location
- Knowing the buying process
- Strategizing and management
1. Knowing what you want from the property purchase
2. Financing the investment
One of the most important considerations that anyone coming from overseas to invest in the UK has to make is how they are going to finance their purchase of property.
Many foreign buyers coming into the UK market will make cash offers, because it allows them the best chance to secure a deal, but there are other avenues it can be worth exploring.
While mortgage products are available both in the UK and in many other nations, off plan property tends to require cash buyers. Those wishing to invest with a mortgage should seek professional advice before doing so to ensure that their financial obligations are fully taken into consideration.
Investors entering the off plan investment market will often find that payments are spread out over the course of construction. This is particularly useful for overseas investors in countries that impose restrictions on the amount of money that can be moved overseas by individuals. In this scenario, it is worth speaking to the developer to ensure that funds can be transferred in a timely fashion to ensure that contracts are not breached.
Projects with favourable stage payments often appeal to those in countries which have tighter limits on transferable funds overseas.