Why is it a good time for foreign investors to buy a property in the UK?
Fighting the Negative Human Centricity
Humans are risk averse. This means that the we tend to think from a negative perspective even when there is a bigger greener side to any situation. As a result, the threat of losing a fiver has the same impact as making a tenner - which logically are not equal.
Sadly, a similar situation is also on display in the property investment sector. With Brexit lurking around, there has been a sense of dryness on display in the property investment sector.
But, we are here to argue that there has never been a better time to invest in the property sector in the UK. There are multiple ways to support this claim.
Cost Savings and High Returns
With the obvious condition of being a region with a small landmass, an ever growing population, a recurring housing shortage, and shrinking family structure, the average price of property in the UK has seen a 402% return on investment over the last 30 years. Putting this in perspective, UK has almost the same population and a similar economic standing as Germany, with one-third the size.
Now, with the anticipation of a bad Brexit, that will supposedly crash the British market, the interest in property development is on a decline. But, the reality of the matter is, a bad Brexit will not benefit any of the parties and things getting sour is a minimalistic possibility.
But, as we mentioned earlier, with the negative centricity of humans, the risk aversion is already on display. The price of a pound has been on a constant decline, and to counteract the situation, interest rates have been lowered to record numbers, meaning that foreign investors can achieve a high yield return when the dust settles.
A Softer Market
Furthermore, the negative centricity on behalf of the property holders has made the market softer. Less and less people are aggressively buying and selling, meaning that it is easier to negotiate with sellers.
Also, in order to support the property sector, the laws for foreign investments provide another dimension of cost saving - better pricing on exchange rates. In some cases, the savings can be up to 4%. When put into perspective, 4% on an average UK property worth £350,000 adds up to £14,000 - a quite significant sum.
To improve your returns on investment even further, we are able to utilise our vast network of industry specialists, ensuring our clients are presented with the latest opportunities, in many cases, during an exclusive pre-launch phase.
Develop Investments specialise in building our investors' property portfolios, ensuring they consist of the most rewarding asset classes , in the best investment locations the UK has to offer.
Get in touch today to find out more.