Reasons to invest in UK property

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

  1. FWL

    FWL Member

    The fun and games surrounding Brexit looks set to take the UK to the edge of the abyss. This concern and confusion will not help the economy and the property market. Expectations that "a deal would have to be done" seem wide of the mark if the details coming out of 10 Downing Street today are anything to go by.
  2. Ali.M2000

    Ali.M2000 New Member

    Would someone be able to explain to me the current situation for first time buyers that want to invest in property?
  3. Jason D.

    Jason D. New Member

    You’ve thought long and hard, and have decided to invest in UK property. What happens next? This article will guide you through the different stages of the UK property investment process.

    It starts with choosing a property that fits your budget and investment goals and appointing an agency that can take you through the purchase process. Unless you don’t mind the hassle of traveling to and from the UK to deal directly with the developer/seller, a good agency will help you select developers carefully, i.e those with a good track record of completing projects on time.
  4. John62

    John62 New Member

    Do you still believe that Brexit is happening and how does this influence your real estate decisions?
  5. realdeals

    realdeals Active Member

    Brexit will happen, or the EU will be re-oranganised, either way there will still be a steady flow of immigrants to the UK to fuel demand for housing. Short term, hold off for the best prices, medium to long term Brexit wont have a massive impact.
  6. John62

    John62 New Member

    If Brexit doesn't happen and the EU will be re-organised, don't you think that Britain could suffer because people might be afraid that there will be a Brexit 2.0?
  7. Jason D.

    Jason D. New Member

    Bad news for Theresa May is good news for the chances of a second Brexit vote.

    With the British prime minster struggling to get her Brexit deal through parliament, more and more Europeans are hoping the U.K. will hold a second referendum and vote not to leave at all.

    They should be careful what they wish for.

    Since the 2016 Brexit vote, a number of European leaders have called the U.K.’s choice a “tragedy” and stressed that the British are always welcome back. The U.K. paid for a big part of the EU budget, and many saw it as a counterweight to Germany and France.

    The U.K. should be welcomed back — but later, not now.
  8. diyhelp

    diyhelp Active Member

    I think the UK Brexit movement is starting to seep into other areas of the EU - the EU Parliament will need to listen at some point. The nationalists are coming!
  9. John62

    John62 New Member

    What is an appropriate time for you? Hopefully not when it's too late
  10. Longterminvestor

    Longterminvestor Administrator

    Hi @John62

    What kind of timescale would you have in mind? Or are you a remainer?
  11. John62

    John62 New Member

    I think a second Brexit vote would be good asap. This would bring clarity in Britain's future and those of the EU.
  12. diyhelp

    diyhelp Active Member

    This is where I am not quite sure whether or not democracy is being respected. Let's say there was a second referendum and the vote was 52/48 in favour of remaining in the European Union. Would we then have another one further down the line because "this one was too close to call". Surely, the first referendum attracted the biggest audience to a UK political vote and whether it was by 1% to 10%, the result is surely the result?
  13. Jason D.

    Jason D. New Member

    Top 5 reasons to invest in UK property:-
    • Politically and economic stability.
    • Record levels of population growth.
    • Housing supply at a 100-year low.
    • 20% of the population will rent within the next five years.
    • Rising rental yields.
  14. Longterminvestor

    Longterminvestor Administrator

    @Jason D.

    You make some perfect points there - people seem to get wrapped up in press headlines and forget the facts.
  15. Jason D.

    Jason D. New Member

    Yeah, I mainly believe in facts...
  16. Longterminvestor

    Longterminvestor Administrator

    For me the rental yield is the key - if it beats mortgage rates (after costs) then eventually you will end up with a paid-up property for no extra outlay.
  17. Steven Doherty

    Steven Doherty New Member

    Property investment has amazing financial returns.

    Another investment to consider, especially in UK, is SEIS and EIS.
    It's a lower risk investment in terms of returns on losses.

    In a nutshell,
    Say you invest £10,000 into an SEIS company.
    You get back 50% in the form of tax relief from the government within 90 days, regardless of the your share price.
    So a £10,000 share in an SEIS company would have only cost you £5,000.
    There's also no capital gains or inheritance tax.
    If the company completely fails, you receive a loss relief which depends on your tax bracket.

    So, lets say your a 40% taxpayer.
    If the company fails, you get back:
    £0 = share price
    £5,000 = tax relief
    £2,000 = loss relief
    £3,000 = maximum possible loss. 30% loss

    If the company doubles in value, you get back:
    £20,000 = share price
    £5,000 = tax relief
    £15,000= total tax-free gain. 150% return!
    Last edited: Sep 13, 2019 at 12:43 PM

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