Experience Invest in Buying Overseas Property

Welcome to the Experience Invest property blog. Experience Invest is a UK property investment and high yielding income-generating assets including both student and residential properties. In today's blog, we talk about investment property in the UK.

The UK remains a very popular place for people to invest from overseas, thanks to its stability and the fact they can get strong returns from their investment. Even though financial crises and political uncertainty, UK property continues to perform well but if you are investing in UK property, there are some top tips you need to know.

Knowing what you want from the property purchase

Knowing your exact motivations behind the property purchase you will help you choose the right kind of property and investment.

Financing investment

One of the most important considerations that anyone coming from overseas to invest in the UK has to make is how they are going to finance their purchase of the property. While mortgage products are available both in the UK and in many other nations, off-plan property tends to require cash buyers.  Investors entering the off-plan investment market will often find that payments are spread out over the course of construction. In this scenario, it is worth speaking to the developer to ensure that funds can be transferred in a timely fashion to ensure that contracts are not breached.

UK taxes and other legal requirements

Taxation in the UK property market is quite unique and always changing, so it’s understandable that people coming from other countries might not know all that much about the situation. However, not knowing how and why you will be taxed can end up being a pricey mistake to make, as failing to factor in such charges can severely affect returns.

Currency exchange factors

Data released by JLL has shown that Asian investors made up 28% of UK property transactions in 2016, up from 17% in the previous year. In part, this increase has been driven by the falling value of sterling in light of the UK’s decision to leave the EU in June 2016.

Choose the right location

For those from overseas, keeping tabs on how different places in the UK are performing can be a difficult task.  Overseas clients typically see UK student accommodation as a good investment. Some investors, who have family members studying overseas, wish to buy and own student accommodation rather than rent.  Investors who have previously lived in the UK whilst studying also understand the market and the premium people are willing to pay for high-quality accommodation. This knowledge of the student sector has helped global student property transactions increase by 40% over the last 12 months.

Knowing the buying process

When buying through Experience Invest, you will also be required to pay a reservation fee which will come off your final balance. The legal Exchange of Contract and transfer of the property (conveyancing) is the next stage. You will need a solicitor or a licensed conveyor for this. You will need to appoint a Solicitor at this stage. Ensure you clarify whether VAT and/or disbursements is/are included in the upfront quotation. Conveyancing proceeds through an exchange of notes between the Seller’s Solicitor and your Solicitor. A “Draft Contract” will be drawn up by the seller’s solicitor containing the price and information about the Seller’s Title Deeds, etc.

Strategizing and management

Finally, when you are buying a home as an overseas investor, it’s absolutely vital that you take the time to consider how the property will be managed and how your income will be sustained. As you are more likely to not be in the UK for the majority of the year, you need someone to hand who can deal with lettings, rent collection, maintenance, and other issues.

Experience Invest offers exclusive and high yielding UK property investments including student accommodation, residential buy-to-let and hotel suites. Learn more about Experience Invest here. Find out what genuine customers have said about the service and products of Experience Invest in the Experience Invest Reviews here. The latest Tweets and updates from Experience Invest here.

Watch Experience Invest video here