Reasons to invest in UK property

Discussion in 'UK Property' started by totallyproperty, Nov 15, 2014.

  1. Ricky Bhurji

    Ricky Bhurji Member Premium Member

    Hi PropEx - On the surface what you say seems logical. However, I haven't seen this. Most Landlords/Investors take a medium-long term view (5+ years at least). They're thinking is that the deficit is coming down in the UK, it has its own currency and interest rate policy and is therefore deemed as a safe haven. Yields may be better in the USA in general, but capital appreciation - especially in towns/cities being regenerating (such as Crossrail) will outperform the USA. Most Investors I know are expanding before April 1st (stamp duty changes). In this mornings news Cherie Blair's law firm is battling to quash the controversial tax proposals next year - in essence, I don't think they will allow for this to go through...
     
  2. nmb

    nmb Well-Known Member

    While the question of the UK leaving Europe is a hot topic at the moment, it is easy to forget that the UK imports far more from Europe than it exports. As a consequence, it must surely be in the best interests of Europe to keep trading with the UK whether as part of Europe or not? I also totally agree with the comment regarding the UK currently seen as a safe haven due to the fact it has more control over monetary policy.
     
  3. PropEx

    PropEx Member

    I would say the tax proposals will definitely go through, but time will tell I suppose. My point about capital appreciation in the USA is if you buy repossessed homes you are getting sometimes 50% discount and once all the repossessed homes in that area are hoovered up then prices will go back to normal which would be far greater than any capital appreciation in the UK.
     
  4. Ricky Bhurji

    Ricky Bhurji Member Premium Member

    Hi PropEx, I invested in Basingstoke and picked up a few apartments in June last year (right before the new Waitrose opened) - the prices of these apartments have gone up by 25% in 6 months - it doesn't really get much better than that! PS- Have you heard of "The waitress effect" as an investment strategy?
     
    Last edited: Feb 10, 2016
  5. PropEx

    PropEx Member

    No, I haven't heard of the waitress effect, I have however heard of the "Waitrose Effect"! When you say they have gone up 25% have you actually sold one at a profit of 25% in 6 months?
     
  6. Ricky Bhurji

    Ricky Bhurji Member Premium Member

    Hi PropEx. Yes, I know purchasers who have bought at 25% higher price than mine, same design. I also know a lot of agents around the area who have sales going through in the same development at these higher numbers. They are encouraging me to sell mine, and rightfully so (but not yet)
     
  7. PropEx

    PropEx Member

    25% in 6 months is excellent
     
  8. NEXT-UK

    NEXT-UK New Member

    Dear all
    Just checkin to know that have you got your reason to invest in UK property?

    Regards
    Mark
     
  9. nmb

    nmb Well-Known Member

    If the UK votes to leave the European Union would that take away one of the major benefits of investing in the UK - the opportunity to benefit from being part of Europe while steering clear of the troubled euro?
     
  10. James White

    James White New Member

    Thanks for sharing the reasons.. I also agree with all the above reasons.
     
  11. nmb

    nmb Well-Known Member

    The chronic skills shortage and funding shortfall needed to increase the number of newbuilds to the required level.
     
  12. Ben Kinder

    Ben Kinder New Member

    The stigma once associated with rental has gone. I believe the rental market is where it's at right now.
     
  13. Tanya Daye

    Tanya Daye New Member

    Top 8 reason to invest in London. :)

    1 predictability
    2 international high demand
    3 Biggest town in whole Europe
    4 Good market practices
    5 reliability and low risk
    6 simplicity and efficiency of the UK legal system
    7 majority of investor are from overseas and independent from the general UK economy
    8 Always gain well
     
  14. PropEx

    PropEx Member

    When you say "low risk", what risk are you talking about, macro-economic, regulatory, exit, price, market?
     
  15. Tanya Daye

    Tanya Daye New Member

    Low risk because of strong economy and regulatory
     
  16. PropEx

    PropEx Member

    Do you not think there is a bit of a price risk, especially in London where in parts of the city, in real terms prices are falling? Also, do the new Landlord taxes not worry you at all?
     
  17. Tanya Daye

    Tanya Daye New Member

    Various terms and factors are affecting in real estate business, some are positive an positive and some are negative. we are talking about reasons to invest in UK so i suggest my idea as a property adviser. Landlord taxes is worry thing but everywhere (outside UK) landlord taxes is necessary and its income source of government.
     
  18. Phil1979

    Phil1979 New Member Forum Partner

  19. Longterminvestor

    Longterminvestor Active Member

    London prices are struggling at the moment and the cloud of Brexit hangs heavy just now. Is there not better value outside of London, in some of the UKs larger cities? There are some attractive rental yields and a recent report showed London and the Southern UK property markets are dragging down headline growth figures for the whole of the UK.

    Personally I would look outside of London and see what bargains are available.
     
  20. diyhelp

    diyhelp Active Member

    I read somewhere that the UK has the highest property taxes in the world by some distance. On the positive side, the population continues to grow and they all have to live somewhere - for many people a property purchase is impossible so renting is the only choice. Buy to let may have gone through a difficult patch with tax rises but it has good potential long term.
     
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