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Successfully Buy an Investment Property in the UK

How to Successfully Buy an Investment Property in the UK

Today, investment properties could be one of the best ways to increase your wealth. This practice is no longer one that was restricted to properties in Australia. The global economy now makes it possible for people around Europe to invest in other countries and avail strong, net returns.

However, these investments may not be appropriate for those people who are not willing to put in more extra time. There are so many other things you need consider when the opportunity to invest in properties comes in the UK.

There are many additional requirements you need to think about when investing in overseas property.

Things to Consider Before Buying a Property

When buying an investment property in the UK, in areas such as East Dulwich, you need have a good knowledge of the house sale in East Dulwich, the market you are planning to invest in and you will need to have a clear plan that outlines what you wish to achieve with the property. Sort out all your finances and the different taxes you need to pay, such as capital gains, and the extra time you may need to put into the property itself and the management.

Investing in the UK magnifies some challenges, including:

  • You need to have a clear understanding of the market. If you have no clue on the market, it is advisable that you consult Fish Need Water Estate Agents or others in your area and take their help for thorough research on the location. If you are planning to invest in other districts, experts highly recommend that you research the claims the person willing to sell his property has. You should also remember that you will not be able to visit your investment regularly if it is not close to you.
  • It is also important that you ask your estate agents for a complete guide to buying property in the UK, giving you a better chance to explore the market.
  • You have to choose the tenants wisely. Keep in mind that obtaining finances from people living in the other district from yours could mean delays in collecting the rent and insecurities when it comes to the types of tenants. The distance can make it difficult for you to find a good property manager and suitable tenants.

Reasons to Invest in UK Properties

The main question that most people ask is why they should consider investing in the UK instead of other countries. This is truly an important question, especially since there are so many other options available. Here are the main reasons why investing in the UK could be beneficial:

  • It has a well-developed property market with different options in properties ranging from Georgian to Victorian, park, country style houses and more.
  • The property values in the UK continue to fall dramatically. Over the last five years, this happened steadily. As a fact, the Bank of Halifax released a report in the mid of last year mentioning that the average Britain homes experienced a fall by £40,000.
  • The British pound is somewhat weak and over the last ten years. This means that it is a lot cheaper for people to consider investing in properties.
  • You get a chance to have a diverse pool of assets in the market, protecting you in the event of a collapse in the market. Investing in UK properties is separate from other countries; this means if one collapses, it means the other will not follow necessarily.
  • Inspect the Property: First, you need to survey different properties and when you identify one worth your investments, you should take your time to inspect it thoroughly. The photos could be misleading at the time, or the rooms may appear larger than they actually are, so explore every detail. In addition, you may never be sure of the area of the property, unless you visit it by yourself. If you fail to look into all the avenues, this might result in you buying a property that is not attractive to renters and it can affect the return you receive.
  • Check the Demographics of the Area: In order to find the property you wish to invest in, you have to look into the demographics of the chosen area. You should consider investing in those areas that have a higher rate of ownership, where the people will most likely be working professionals.

Finding the Right Property

Keep in mind that pulling off a successful strategy in investing in the UK can rely on various predictions. It depends on the property market, how the British pound would lift in its value and how the property values in the UK will increase.

If you are not sure whether this will occur, it is vital that you conduct a complete research on the trusted sources and the right professionals or Estate agents in your district before you consider investing in the UK property.

Care-Home-investment

Will care home investments be the next big thing?

The UK is set to witness a stark rise in the number of people aged over 85 who require care over the next 35 years.

Rising life expectancy rates and a high demand for beds have sparked investor interest, as many consider the non-discretionary nature of the sector as a hotbed for investment.

Ageing population

Currently there are 4 people of working age for each person aged over 65 and this number is set to halve in the next 35 years.

What’s more, the number of people aged over 85 is predicted to double over the next 20 years. An ever-expanding ageing population coupled with rising life expectancy rates will no doubt add pressure to a sector which is in dire need of investment.

Around 15% of over 85s are expected to require residential care in one shape or form. Many existing facilities are now dated and require a substantial overhaul to provide the best quality care.

Investment in modern, purpose-build healthcare properties, operated by well-established operators could build the bridge between current supply and demand.

Factors for consideration

Among other things, investors should consider a few new variables which may affect their care home investment.

The government’s recent announcement that care workers should receive the national living wage has been welcomed by many however, investors should ensure that the opportunity they are considering has factored in this pay increase.

Also, the spending cap – outlined in the Dilnot Report – whereby an individual’s personal care costs would be capped at £75,000 is something people should consider. The cap has been pushed back to 2020 however, many experts believe that a cap will never be introduced.

Changes to legislation are not the only factors investors should consider. Location is an important element that investors should consider. The care sector is not limited to big cities. It is often smaller communities or areas on the outskirts of a town or city which would benefit the most from a care facility.

Investors should look to buy in a location that has a large proportion of people aged over 65 and in areas where there is already a high occupancy rates in existing facilities.

A Management Company with a good reputation will also go a long way when it comes to attracting residents. Investors should check what the CQC (Care Quality Commission) has reported about the company before investing.

Care home investments

Typically investors can purchase an individual room within a care facility which is then let out on a leasehold basis to a reputable care operator.

Investors can expect to generate a long-term rental income from an asset class which is vital to the UK’s economy.

Care home investments could provide property investors with a way to diversify their property portfolio and generate a stable income from the asset class.