The Benefits of Buying Investment Property in the UK

For some reason the phrase ‘investment property’ rarely conjures a picture of investment property in the UK. Most people will automatically associated the phrase with properties abroad, and while oversees investments can make you money they are a lot more difficult to manage without the help of an agent.

So, let’s say you have money to invest in property. Why should you go with investment property in the UK rather than the luxury you could get abroad?

The Promising Rental Market

 Obviously if you’re looking at investment property in the UK you’re looking at entering the private rental sector – and there is no better time to do it. The rental market in the UK is currently seeing a huge resurgence because wannabe buyers simply can’t afford the deposits that mortgage lenders require.

It has recently been predicted that the demand for good private rental properties will continue to outweigh the supply for the foreseeable future. This means that any investment property in the UK that is in a rentable condition and a good location will generate a positive cashflow and a profit from the start.   

Mortgage lenders around the UK are also starting to see that the buy to let market is showing increased promise, and as a result you can now find buy to let mortgages with 80% LTV. Only a year ago you’d have been required to produce an average 40% deposit on a buy to let property but with some lenders now halving this figure it makes it a lot easier to secure the mortgage you may need.

Cheap Properties to be had

If you know where to look there is plenty of cheap investment property in the UK. Property auctions are probably the best place to start looking as you can often save yourself around 30% on the market value of a property. Alternatively you can search the internet for inheritance property websites, repossession property websites and those websites where homeowners in financial difficulties can sell their properties for BMV but within a week or two.  

Buying off-plan investment property in the UK is also a popular option. It is considered to be a little bit more risky than buying a property that actually exists but with the right advice you can sometimes make huge profits, either by renting the property when complete or by selling it in the development stage. You should get professional advice before buying off-plan though.

Fewer Fees and Associated Costs

Buying any property in the UK is rarely a cheap experience but it’s a lot cheaper with regards to fees than buying an investment property abroad. There are so many rules and regulations abroad that you’ll have no option other to than to hire the services of an agent and maybe a solicitor in the country you want to buy in. When you add these costs to the cost of your own solicitor, your broker’s fee, your finder’s fee if you use a property search company, the on-going management fee for the property and the cost of travelling to view properties it becomes an expensive way to invest.

You might well find the bargain property of a lifetime but with a bit of research you can easily find an investment property in the UK with the same potential. People need rental properties in the UK to live in long term; properties abroad on the other hand are very seasonal, so buy where the greatest potential for profit is and really make the most of your investment.