5 Tips for Expats and Overseas Investors buying property in the UK
As an investment consultant specializing in the UK Property market I am often asked 2 questions: HOW & WHY.
How does an investor based outside of the UK purchase a property there? And why would they want to? Well firstly, the process of purchasing a property as an overseas investor is a lot more streamlined and simple than most are led to believe. Working with a company that has strong relationships with UK developers means that you can be as hands on or hands off with the investment as you like.
Secondly, why would somebody who may never have even been to the UK want to own property there? Well in a nutshell the UK has proven time & time again to be a stable and steady market offering high rental returns and high capital growth potential. Paired with the current Stamp Duty Holiday it is no wonder we have investors queueing around the block for a piece of the action!
So, what do I tell investors when they approach me for advice on a property purchase in the UK?
1) Work with a reputable company.
Find an investment consultant in a company that has a proven track record within the local market as well as the UK. Chances are these companies will have great knowledge on your existing portfolio and will be able to find the perfect investment to diversify and enhance this portfolio. They will also work closely with prestige companies in the UK due to the strength of their brand in the local market.
2) Create a plan.
Before speaking with an investment consultant find a strategy that suits you. Can you proceed with the investment straight away or will you need time? Are you making a cash purchase or mortgage finance? Will it be purely for investment purpose or are you an end user? Having a rough idea of what you are looking for means you will be able to work closely with the investment consultant to get something that works well for you from the get go. There is no point your investment consultant showing you an 8 bedroom, ￡5 million house in London if you're looking for ￡150,000 studio in Liverpool.
3) Research the developers.
It is important when buying a property, particularly if that property is off plan, that you have an idea of the track record and reliability of the company. How many completed developments does the company have? What is the net worth of their current portfolio? As an investment consultant it is my job to understand that security is paramount to my clients needs.
4) ASK QUESTIONS. THEN ASK MORE QUESTIONS.
I often have clients send me WhatsApp messages at 10pm starting with "sorry for the late message..." PLEASE DON'T APOLOGIZE. I will pick up messages as efficiently as I can and I would always choose for my clients to ask questions that are important to them. It is my job to be on hand to educate and reassure my clients. You might not know this market inside out but it is my area of expertise. Use this to your advantage.
5) Ensure you have the right documents.
Ask your investment consultant what documents will be needed for each stage of the purchase process. What do I need to reserve the unit? For a mortgage? If I need to sell the property in future? It is important to ensure you are eligible and in a position to proceed.
Finally, love your new property! The UK is a vibrant and exciting market that investors worldwide are seeking to get into.
For more information on the UK Property market including market analysis and free consultation contact me on: [email protected]
Lets work together!