With a favorable exchange rate and a huge range of options now is one of the best times to invest in the UK property market. Whether you are a seasoned investor looking to diversify your portfolio or a first time buyer the UK real estate market offers great opportunities for everyone.
In this article we are going to have a look at some of the top reasons to invest in the UK and the process of doing so right here from Dubai. We will also look at the types of investment options available as well as cover some of the most commonly asked questions.
Top reasons to invest in UK Property
- Because you can – foreigners from all over the world are allowed to buy property in the UK with no or very minimal restrictions
- Consistent and strong capital appreciation over the medium and long term
- Weaker then usual British Pound making buying today around 20% cheaper then 5 years ago
- A mature real estate market with some of the worlds strictest property rights
- Demand vs Supply – With strict land development regulations and a growing population the demand for Uk property is only set to further outgrow supply. This offers great opportunities for buyers looking to sell or rent their property
How to Buy Property in the UK or London from Dubai
This is the easy part. Simply contact us today and one of our consultants will be happy to talk you through all the options and the process of buying a new property in London or the UK right here from Dubai.
We can:
- Provide you with huge range new developments and property types from all over Uk including London, Manchester and Liverpool.
- Give you unbiased advice/recommendations based on your individual requirements
- Deliver a personalized step-by-step guide throughout the entire process
- Assist with and arrange everything related to the purchase; legal assistance, mortgage help, currency exchange and more.
Types of Investments Available
Investment in the UK is full of choice as there is a such a wide range of property options available. Opportunities include everything from small apartment units and student accommodation solutions to high end properties in London city centre. You can invest from as little as £100,000 to well over £10,000,000, it simply comes down to your budget and what you are looking for.
With so many types of investment options, deciding which one is the right option can be a little bit daunting. In most cases there is no right or wrong answer as it simply depends on your reasons for buying and investment goals.
Popular Investment Types
Buy to Let – A standard property usually a modest house or an apartment purchased for the purpose of generating an income. A property like this can and often does still experience a price increase however this is not the primary goal of the investment.
Buy to Sell – Buying a property with the intention of selling it for a higher price. The price increase will come from either a renovation/development to the property or through simply buying at a low price in an area that is set to experience rapid price growth.
Student Accommodation – A small unit in a purpose built student accommodation facility. This type of investments normally offer great returns but does not experience the same capital growth you of a typical buy to let investment.
Popular property types
House – A fully detached, self contained property with a front and back yards.
Semi Detached – Similar to a house with one distinct difference. A semi detached house as the name would suggest is not fully detached but shares one of it’s sides with another property.
Terraced House – A row of houses who share walls on both sides. Usually rather narrow with small gardens.
Bungalow – A detached house all on ground level. Usually very small and with a distinct style.
Cottage – A small detached house commonly found in the British rural country side. Made with thick walls and small windows these properties were originally made for agriculture workers and their families. Of course now much more modern and user friendly versions can be found.
Flats – Commonly referred to as apartments in most countries. Usually found in densely populated areas and city centers.
Costs involved in buying a UK Property
Just like here in Dubai, buying a property in the UK does come with additional costs. The biggest cost that buyers need to be aware of is Stamp Duty. This in many ways is the equivalent of the Land Department Registration fee paid here in Dubai.
The amount payable for stamp duty does vary depending on a variety of factors. The biggest of these is the value of the property being purchased. For example a property with a value of less then 500,000 AED attracts no Stamp duty at all. On the other hand a property with a value of 4,000,0000 AED would require 5% Stamp Duty to be paid.
Can non residents or foreigners buy in the UK
The answer to this question is YES. Both foreigners and non residents can buy property in the UK. Unlike a lot of western countries where foreign ownership is limited and sometimes complicated the UK is quiet the opposite. The process of buying a property for non residents is surprisingly rather simple and without limitations.
Morgage for Non Residents/Foreigners
Non UK residents are able to get a mortgage in the UK. There are in fact several banks that specialize and offer various mortgage products in this category. Of course just like everywhere else each bank has its own set of criteria that will need to be met before qualifying.
How to Manage a UK property investment from abroad
Managing a property or properties and being a landlord in the UK or anywhere in the world for that matter is not without it’s challenges. Finding and managing tenants, covering maintenance issues, complying with local laws can all be rather time consuming. These challenges are of course only amplified when you don’t actually live in the same city or country in which the property is located.
Luckily for overseas buyers there is solution to this challenge and that solution is a trusted and experienced letting agent. A reputable letting agent can really be a landlords best fried. They can not only find the right tenant, collect payment but also take care of all the ongoing maintenance related to the property. The fee for such a service is usually around 7 to 8% of total rent received which in reality is a small price to pay for a piece of mind.
Now of course in case of a new property the maintenance is really a non issue so this extra service may not be necessary. Other investment types such as Student Accommodation are usually fully managed so once again no management service is required.