There are many reasons why overseas investors choose the UK property market. It is a reliable, profitable option which offers a whole range of benefits you can’t find as easily anywhere else.
Once you have understood the buying process and the legal considerations for overseas investors, you need to decide what kind of property you want.
There are two types of property you can buy:
Buying off-plan comes with a range of advantages for overseas investors that make should make it an interesting option for buyers.
Find the best location without any bias
One of the biggest advantages for overseas buyers is being able to choose the best locations without any complicating factors – it’s all about return on investment.
Buying off-plan makes this into an even bigger advantage. You can look ahead and invest in the UK markets which are primed for growth in the future. That can be established markets or emerging market which might currently be less well known to the domestic market.
For example, a UK-based investor might want to manage the property themselves, but be based in the South West. That means they can’t buy off plan in Manchester city centre and will miss out on all the growth that is coming in the city.
Buying off plan property in Manchester is also one of the best strategies available for overseas buyers. You can read more about that here.
Alternatively, an overseas investor can look at emerging UK property markets like Hull which is growing fast and offers a huge upside in the future. Buying off-plan in locations like these is a great option for an overseas investor, while a domestic investor might not be able to see such opportunities in the same way.
Management company in place
For overseas buyers it is essential to appoint a reliable letting and management agent to operate your investment. The list of tasks required of a landlord that you cannot do from abroad includes:
You can’t rent your property out without doing all of those tasks, so you need a local agent on the ground to take care of it.
With off-plan property investments, this problem is often solved for you. Most new developments that are designed for investors will have a lettings and management agent appointed to take care of the building before construction ends.
That means you can use the company that is already in place and don’t have to go through the process of searching for yourself. It is also a good guarantee of quality as the agent will have been vetted by the developer and your trusted sales agent.
That means off-plan property is a hands-off investment – perfect for the overseas investor.
Furniture packs available
To secure the highest return on investment you need to provide what tenants want. The more of their desires are met, the higher rent they will be willing to pay. One of the things that consistently leads to higher rents is providing furniture. For an overseas landlord, that can be a tricky process. You can’t visit the place to measure it up, and so you will be buying furniture that may not be a good fit for the apartment – potentially putting tenants off.
Off-plan property investment offers the solution with furniture packs. These are made-to-measure furniture items designed specifically for the property you are buying – and you will be able to purchase them with any off-plan investment. That means buying off-plan gives you a fully furnished property which you can charge higher rents for. Some surveys show that rental premium could be as high as 20% in some cases, making furniture a worthwhile investment.
Off-plan properties are brand new and need less maintenance
Finally, buying off-plan means that you are guaranteed to get a brand new property that will have fewer maintenance and repair issues than an existing property. New properties come with a 10-year warranty at minimum and you can invest from overseas assured that any issues or problems will be covered.
Similarly, a new property will be fitted with the latest appliances which are also likely to last longer – removing another potential expense that landlords have to face. Choosing a brand new property is another way that overseas investors can get all the benefits of UK investment property without many of the downsides.
Want to learn more about UK property and how overseas investors can maximise their returns? Get in touch with the Alliance Investments team today for more information.