With a range of mortgage options available for UK expats and foreign nationals, investing in UK property is well within reach for many prospective investors, making it an excellent way to begin building an investment portfolio.
The North West is currently leading the pack on capital growth rates, with Savills projecting a 28.8% rise by 2025. Comparatively, London is projected to have the lowest capital growth rate in the UK – just 12.6%.
Residential buy-to-let property is the most popular choice for UK expats and foreign nationals.
Though the capital growth potential with a student rental property is not as high as with a residential buy-to-let, the huge rental demand and usually hands-off nature is still attractive to many UK expat and foreign national investors.
Holiday lets are currently immensely popular with UK expat and foreign national investors using UK expat and foreign national mortgages. This form of let is extremely profitable and investors are likely to see huge returns.
A buy-to-let property is a great investment for any UK expat or foreign national in 2022. Liquid Expat Mortgages explains what you need to know to get started.
There is currently a wide range of [mortgage] choice available to UK expats and the roster of lenders that are offering UK expat and foreign national-specific deals is growing all the time.”— Stuart Marshall
MANCHESTER, GREATER MANCHESTER, UK, January 31, 2022 /EINPresswire.com/ -- An incredibly common new year’s resolution for many UK expats and foreign nationals is to buy a UK investment property using a UK expat or foreign national mortgage. Since UK property is a tried and tested investment vehicle and a relatively stable asset class, buying a UK investment property with a UK expat or foreign national mortgage can be an incredibly lucrative venture for prospective investors. But, investing in property can be a daunting task. To help, Liquid Expat Mortgages presents its UK Expat and Foreign Nationals Guide for Beginners’ Buy-to-Let!
Getting Started.
Before getting started, there are a few initial questions to consider:
- What is the purpose of the investment?
- What are the risks and what are the rewards?
- What will the responsibilities be? And can they be met?
What Is the Purpose of the Investment?
When looking to get a UK expat or foreign national mortgage, deciding on the purpose of the investment will massively influence the course of the investment. For example, if the investment is part of a retirement plan, the property is likely to be a different property than if the goal of the investment were to add extra income to a pay packet. If you are buying an investment property for your retirement, the desired property will probably have a high likelihood of its capital value appreciating by a large sum. That way, when the property is sold, it will generate a large lump sum from the sale to contribute to a pension packet. On the other hand, if the purpose of the investment is to generate more income, the main consideration in looking for a property will be the strength of the rental yield as this will determine how much can be earned on a monthly basis.
Weigh the Risks and Rewards.
Every investment has an inherent risk to it and no asset is totally stable. The Covid-19 pandemic has exemplified just how changeable market conditions are. In this instance, the property market was positively affected – with demand and prices rising massively. However, the converse can just as easily happen, and some analysts are predicting price correction over the next few years.
On the other hand, property investment is typically much safer than other types of investment and property is a more reliable asset class than competing assets, such as stocks. Stocks are prone to fluctuate massively, whereas the housing market is relatively stable and prone to a quicker recovery if prices do radically alter.
Other risks to consider are how income might become adversely affected by differing factors other than fluctuation in the value of the asset. One notable risk would be changes to legislation or tax rules. For example, a recent legislative change to the rules around