A Bullet Point Guide to
Buying Property in the UK
Benefits of investing in London property
market
Real estate is one of the most profitable businesses in the
U.K. because it returns cash flows and capital appreciation. Examples of real estate investments include
condominiums, detached homes, single homes and apartment homes.
Most real estate is illiquid. This means that you cannot sell
your property in a hurry. However, online real estate companies such as The Little House Company do speed up the process. Although it is important to understand
the risk and benefits of investing in the London property market before you put your money into a
deal.
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Rental properties in the UK can be a good source
of
steady cash flow returns. (Image by
Freeimages.com) |
Commercial
Property
When you start thinking about buying property in the UK, that
will usually mean starting with the city of London's commercial property. Here are important points to keep in
mind:
Make sure you are aware of prevailing market conditions.
Choose an agent who primarily works with buyers. Research the agent and
make sure he is working in your best interest.
Determine how much you want to spend on a property. Get pre-approved for a
loan and structure it for longer terms and a lower down payment.
Check on proximity of the property to support services such as the local
fire department or hospital.
Take note of building conditions in the neighbourhood.
Make sure the neighbouring commercial buildings are in good condition as
this affects property values.
Decide how much you are willing to pay for the
property. During negotiation, offer
less than what you are willing to
pay.
Engage a real estate attorney to help you close the sale.
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Short sale is another way to create real estate income
from properties in the UK. (Image by
Freeimages.com) |
Rental
Property
When you buy a rental property, you essentially become a
landlord. This will mean numerous responsibilities, including keeping your properties safe and adhering to other regulations
required by Housing Health and Safety Rating Sytem (HHSRS). But for pure investment purpose, consider these
points:
Time the market accurately. Cycles associated with real estate markets have
significant effects on your ability to make profit from your rental property investments.
Consider your exit strategy before buying the property even if the property
is for long-term appreciation.
Shifting markets provide buying opportunities for real estate investors.
This allows the investors to obtain cash flows and sell their properties later when the values of their
properties appreciate.
Find good bargains on rental properties by searching probate properties,
bank-owned or real estate owned properties, sellers facing divorce or bankruptcy
and properties on
auction.
Determine your investment strategy. Examples of investment strategies for
rental properties include fix and flip, buy and hold as well as lease options.
It may be easier to purchase houses in disreputable neighbourhoods but it
will be difficult for you to retain tenants in such properties. Look for rental properties in reputable
neighbourhoods.
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Commercial property in
London, UK, provides good returns
and capital appreciation. (Image by
Freeimages.com) |
Short Sale Property
Selling real estate in short sale usually means that the proceeds of the sale will fall short of the debts against
the property. It's often used as an alternative to foreclosure. As a potential investor, keep these points in
mind when acquiring short sale properties:
Do a comparable sales search before purchasing property on short sale
because many properties on short sale come with mortgages higher than the properties
themselves.
Determine the number of liens attached to short sale
properties.
Locate properties with approved sales prices. Such properties have been
through the initial sales process, do not usually come with liens and are priced to sell.
Avoid blatant low-ball offers.
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