Successful real estate investment UK | Предприниматель

Successful real estate investment UK

Tips private investors

Ukraine investors for UK interest for several reasons. First, it is one of the closest countries to which speak a language familiar to many from school. Second, the business environment in this country are safe enough. Thirdly, this country is not a party to the euro zone, trying to protect themselves from the surging wave of the crisis on Europe.

But the main reason why our investors are eager to come to the UK, is that the real estate market, being fully integrated into the economy, but also well-structured, gives investors a lot of new features. UK market is quite dynamic. That only is the fact that the average family in this country can move every three years, thus improving their living conditions. Rental housing is a matter of time, and all take the first step by buying their own homes.

Moreover, the UK market was able to weather the crisis, while avoiding, in contrast to the U.S., massive defaults in mortgages. A London and the south-east of the country like it all and did not survive.

I’m often asked the question, wondering whether to invest in nedzhvizhimost of this country, to which I always say that success in this business depends on understanding what it takes to acquire and how. I will give some advice on this issue.

Want to buy – prepare cash

If you’re looking to buy, remember that sellers tend to give preference to those who are willing to pay in cash (cash buyer), and not “financially prepared.” The very concept of finance arranged just means that the loan stipulated with the bank, but it does not guarantee that the money will come immediately after completion of the transaction.
Therefore, those who have the cash to pay can get 5% discount, thanks to the certainty willingness to pay for a purchase immediately after its registration. And if in the future the market will grow, it will only multiply discount income of the investor. In the future you can make quite a favorable loan for real estate.

Search for “uncompromising” housing

Owners of a considerable amount of cash, or, as they are called, common buyers can spend more time searching for a more profitable investment option for them. A viewing, for example, 30 sites to choose only three of them – sort of a “straight-out” option. It should be noted that a lot of investors in the market, so there is competition – there is something to fight for. As a rule, when the UK model housing (room with two bedrooms) drops in value, then the “no-compromise” is only growing.

It is very difficult to give a precise definition for this type of housing, because most of the houses in the UK are mainly individual. It is better to make a comparative analysis. For example, there is a house in which only the positive characteristics. But buyers often put forward specific requirements: that took place near Metro line that had a view of the park, but only on the tops of the trees to beat the long corridors, etc. If an object is satisfied by all the requirements of the buyer, it can be described as “uncompromising” and its purchase is a pretty good investment for the investor to do with both the medium term and in the longer. Since 2008, such “ideal home” rose in price by 10-15%, with an 8% price fall on the average residential. These indicators relate mainly to London and the surrounding counties.

Buy to Sell

The UK has become very common to buy real estate at auction. This is quite a profitable investment, especially if the bank has withdrawn his non-payment of the mortgage. With that much trouble when you make a deal will not be the seller – an individual.

Suppose you bought at the auction facility of ? 500,000, with the repair you have spent ? 100,000, and now want to get behind him ? 700,000, at most, ? 650,000. For UK investors, it is quite usual calculation, but not Russian. The fact that the Russians are buying a house will not be able to invest in the ? 100,000 to repair it because they are used to require the construction works of high standards. For the British, as the main criterion for the quality of repair is its cheapness. They even There is a joke that all the houses in Britain dye one color “Magnolia” cream-colored, and are not going to change anything.

Therefore, investment projects «buy-to-let», that is to buy a house to sell it in the future or lease are successful only on the condition that you accept all the rules of the game. And only by abandoning their perceptions of quality and price, you can compete on the UK property market.

Of course, investing in real estate the UK were not allowed to obtain a residence permit in the country. But sometimes having your own home plays a key role in the issue of citizenship. For example, if the applicant has been outside the country for longer than the law allows, it is the availability of permanent housing that is home to his family, can confirm the seriousness of his intentions to live in this country.

Investors planning to invest in real estate in the UK, it should be remembered that the right to receive a good income from them will not work. You have to wait rising at least a few years to considering those 5% interest, as mentioned at the outset, to cover expenses, including the stamp duty, which is one of the highest in the world accounting for 5% of the value of the object that is bought.

To summarize, having decided to invest in real estate the UK should prepare cash, look for the “hard-line” options, do not rush to buy, so as not to make mistakes. Do not believe the rumors, for example, that in the UK there is now an influx of Greek money in anticipation of a default in Greece. (Or any other country with a similar situation, such as Italy and Spain). The Greeks are buying property to live there in the future. We also can not be in a hurry …

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