Find 15

Main Factors Rated as Important by Overseas Investors When Buying UK Property?

Overseas investors consider certain factors to be key when selecting an investment property in the UK. Whilst in the past Find UK Surveys had shown that being near London was important, the recent survey shows that this is not the case and other factors such as price and rental yield are more important.

Previous surveys done by Find UK Property have shown that being near London was important when considering investment property. However prices in London have gone up sharply over past 5 years and rental yields are very low, making London less attractive to investors. This is confirmed by the recent Find UK Property survey which shows other factors to be more important.

Overseas nationals and UK nationals living and working overseas (also known as Expats) are increasing looking to purchase investment property in the UK. Many residents of other countries see the UK as a “safe haven” when considering long term investment in property. The UK property buying process and selling laws are well regulated and long term title ownership is clear cut. Additionally Expats are now realizing that investment in suitable property offers them better returns than other forms of investment. Rather than investing in property abroad, which can be higher risk, they are now buying UK investment property whilst continuing to work abroad.

A survey conducted in June 2014 by ‘Find UK Property’ on the buying intentions of overseas buyers, shows the relative importance of factors considered to be key when selecting a suitable investment property in the UK. Survey respondents rated the factors out of 5 with 5 being the most important and 1 being the least important.

Important Factors-                    Rating
View property personally-      4.42
Best possible price-                     4.40
Good net rental yield-                4.31
Getting a rent guarantee-        4.29
Cheap property managing-     3.93
Being in UK for all steps-          3.85
Faster future grow rate-           3.72
Visiting FIND UK HQ in UK-  3.67
FIND UK help with buying-    3.63
Pay by Client Account-              3.04
Useable by yourself too-          3.04
Payment plan/Mortgage-        2.63
Getting it near London-            1.85

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Andy Noble, Senior Marketing Consultant at Find UK Property explains these changes in importance. “London property prices are now very high whereas rents in the capital have not risen significantly. The rental yields have thus decreased and are now about 3% compared with 8% in some other areas of the country. Additionally many view that prices may not grow much more in London and could even come down a little.”

“Find UK Property helps overseas investors purchase low cost fully managed property in the UK. This change has meant that our low cost 2-bed and 3-bed houses in the Lancashire area have become even more attractive to overseas investors, as these deliver amongst the best net rental yields in the UK”

He added: “Our best-selling house costs just £54,995 and delivers 8% rental yield. The same 2-bed house on the outskirts of London could cost over £250,000 and deliver around 3% rental yield. Thus, for the price of ‘one’ house in London, an overseas investor could get ‘five’ similar properties in the Lancashire area, have double the rental yield of around 8%, potentially greater capital growth, and more future flexibility in that some properties could be re-sold whilst others retained.”

About “Find UK Property”
Find UK Property are the ‘buyers’ agent and specialise in helping serious overseas buyers find the most suitable investment property for their needs. The company conducts regular surveys on overseas investors and findings are printed at their “UK Property News” Blog at http://blog.findukproperty.com.

The most popular purchase are the fully managed low cost houses in the price range of £55,000 to £70,000 that come with full management, repair guarantees, and guaranteed rent. Many clients are seasoned investors who may have purchased investment property in other countries via sister companies Openshore Property and Sandcastles based in Dubai. Further details can be found on the Find UK sales website at http://www.findukproperty.com

Find 5

Find UK Survey Show The Top Reasons Why Overseas Residents Including UK Expats Are Buying UK Property

Recent Survey by Find UK shows that over 42% of overseas clients including Expats are now looking to buy a UK property for investment compared with only 31% 5 years ago. Approximately 20% looking to buy for both holiday use and investment and under 24% need it for purely their own residential use.

Previous surveys done by Find UK Property have shown Investment and “Holiday Use” to be equally important reasons why overseas residents are looking for UK Property. Their latest survey shows the most important reason now is clearly purchase for pure investment.

UK nationals living and working overseas (also known as Expats) form a large proportion of overseas residents buying property in the UK. Whilst many buy for their own use, an increasing number of Expats have also been buying for pure investment and this trend seems to be increasing. Added to this are residents of other countries who may not be UK nationals, but still see the UK as a “safe haven” when considering long term investment in property. For them, the UK is attractive as UK property buying process and selling laws are well regulated and long term title ownership is clear cut.

A survey conducted in June 2014 by ‘Find UK Property’ on the buying intentions of overseas buyers, shows that an even higher percentage are now looking to buy for investment. In 2009 survey, only 31 % of clients were considering a property purchase in the UK for pure investment. In 2014 the percentage is significantly higher at 42%.

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The main reasons for purchase are:-
Buying for Pure Investment – 42%
Pure Own Residential use – 24%
Renting and holiday use – 20%

Andy Noble, Senior Marketing Consultant at Find UK Property explains that a large proportion of this increase is from UK Expats working in the Middle East and Far East. Such clients have high earnings and are now realizing that investment in suitable property offers them better returns than other forms of investment. Rather than investing in property abroad, which can be higher risk, they are now buying UK investment property whilst continuing to work abroad.”

Many such clients are looking at these property investments for the very long term and intend to keep them to generate pension income. They also qualify for the £10,000 UK personal allowance, which means that for many the UK rental income is effectively tax free.

He added, “Find UK Property helps overseas investors purchase low cost fully managed property in the UK. Many of our customers are investors and Expats based in the Middle East and Far East who purchase via our partner company, Sandcastles based in Dubai. This trend of buying for investment has increased the demand of our low cost 2-bed and 3-bed houses, particularly in the Lancashire area. These 2-bed houses at £54,995 are much lower cost than properties near London and come with 8% rental yield which is more than double the rental yields of properties in the South.”

Whilst many non UK nationals are still attracted to London, the trend amongst knowledgeable UK expats living abroad is to opt for lower cost properties away from London in areas such as the North West including Lancashire, Manchester and Liverpool.

About “Find UK Property”
Find UK Property are the ‘buyers’ agent and specialise in helping serious overseas buyers find the most suitable investment property for their needs. The company conducts regular surveys on overseas investors and findings are printed at their UK Property News” Blog at http://blog.findukproperty.com.

The most popular purchase are the fully managed low cost houses in the price range of £55,000 to £70,000 that come with full management, repair guarantees, and guaranteed rent. Many clients are seasoned investors who may have purchased investment property in other countries via sister companies Openshore Property and Sandcastles based in Dubai. Further details can be found on the Find UK sales website at http://www.findukproperty.com

Find 4

Overseas Investors Are Switching Away from London in Search for Low Cost UK Property

High London property prices and low rental yields are changing views amongst overseas buyers looking for a low cost investment property in the UK. The April 2014 ‘Find UK Property’ survey shows that the percentage of people considering property outside London have more than doubled, compared with a similar survey done by the company 5 years ago in 2009.

Previous surveys done by Find UK Property have shown London to be the main location sought by overseas investors looking for UK Property. However, their latest survey shows that this is now changing.

Many residents of other countries see the UK as a “safe haven” when considering long term investment in property. The UK property buying process and selling laws are well regulated and long term title ownership is clear cut. In the past the main desired location has been London due to its familiarity with buyers from most countries, who may visit London and may also have existing links with relatives and contacts in the capital.

The attractiveness of London has remained throughout the recession and part of the prices increases here may have been fuelled by strong demand from overseas buyers. However, because prices in London have soared by over 45%, over the past 5 years, rental yields as a percentage of price have fallen, and in many areas are around just 3%. On the other hand, prices of low cost property in other areas such as the North West including Lancashire, Manchester and Liverpool, has gone down and rental yields increased over this same time period. These changes are finally having an effect on the views of overseas investors.

A survey conducted in April 2014 by ‘Find UK Property’ on the buying intentions of overseas buyers looking for property in the UK, shows a marked shift from the results of a similar survey conducted in 2009.

In the 2009 survey, only 31 % of clients were considering a property purchase outside London. The comparable figure in the 2014 survey is much higher, almost double, at 61%.

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Clients who were no longer considering London were asked to specify their main reason for not doing so. The top 3 reasons given are shown here:-

36% – London prices now too high and exceed budget
29% – London rental yield low compared with rest of UK
21% – Future London growth may be less than rest of UK

Andy Noble, Senior Marketing Consultant at Find UK Property explains that this increased tendency for buyers to consider other areas of the UK, has had a big positive effect on his own company which specializes in selling low cost investment properties in the North West of England. “Find UK Property helps overseas investors purchase low cost fully managed property in the UK. Many of our customers are investors based in the Middle East and Far East who purchase via our partner company, Sandcastles based in Dubai. This trend away from London had recently increased the demand of our low cost 2-bed and 3-bed houses, particularly in the Lancashire area. These 2-bed houses at £52,995 are much lower cost and come with 8% rental yield which is more than double the rental yields of properties in London.”

He added: “The same 2-bed house on the outskirts of London could cost over £250,000 and deliver around 3% rental yield. Thus, for the price of ‘one’ house in London, an overseas investor could get ‘five’ similar properties in the Lancashire area, have double the rental yield of around 8%, potentially greater capital growth, and more future flexibility in that some properties could be re-sold whilst others retained.”

However, it was noted in the survey that even though there was this large increase in the percentage of buyers looking for property outside London, the capital still remains favoured by well over one third of all overseas property buyers looking for investment property in the UK. An even higher percentage of overseas buyers continue to consider London when searching for ‘own use’ properties and properties over £1m.

About “Find UK Property”
Find UK Property are the ‘buyers’ agent and specialise in helping serious overseas buyers find the most suitable investment property for their needs. The company conduct regular surveys on overseas investors and findings are printed at their “UK Property News” Blog at http://blog.findukproperty.com.

The most popular purchase are the fully managed low cost houses in the price range of £50,000 to £70,000 that come with full management, repair guarantees, and guaranteed rent. Many clients are seasoned investors who may have purchased investment property in other countries via sister companies Openshore Property and Sandcastles based in Dubai. Further details can be found on the Find UK sales website at http://www.findukproperty.com

Find 15

Are these the best value UK Investment Properties? 2-Bed Houses – £52,995

This post explains why these types of full 2-bedroom houses priced at £52,995 are the best value investment properties in the UK. See the  evidence below. Comments welcome.

1.Key Points

-Fully renovated complete 2-bedroom houses for £52,995

-Already rented with 8% rent – £4,240 per year

-Full property management with guaranteed repairs and guaranteed rent option (at 7%)

-High rental demand – near town centres, university and railway station and all facilities

-Complete buying and long-term management service included with guarantees.

-Overall excellent investment returns up to 20% per year. You investment could double within 5 years.

See full details below

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Find 18

Dubai Property Versus UK Property – Which is Better?

Two of the most popular countries considered by International Investors for property investment are the UK and Dubai. Our group companies (Find UK Property and Openshore Dubai Property) sell and manage property in both of these locations, and so we thought we would give you a summary comparing these two options – UK Property or Dubai Property. This post also appeared on the Openshore Blog in February.

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Find 17

Overseas Buyer Views on UK Property and on Find UK

In our latest surveys we asked clients who were looking to purchase a property in the UK about their views on how the market will change from now until end of 2015. Do most of them think prices will go up or go down?  We also compared the results with a similar survey we did in 2009 – 5 years ago.

We also asked them about their views on Find UK Property – the company . We wanted to know what perceptions they had formed of the company from the website, and dealing with the sales team so far; and are they likely to buy from us. All of these clients had not yet purchased a property but had dealt with sales staff and had obtained information about our properties and services.

Some of the data is shown below

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Find 14

Comparing Property with other forms of Investment

This post is not really a blog but a sales post which was also sent out as an email mailshot to potential customers. It is telling you why investing in a low cost property is better than other forms of investment such as shares and savings. You could thus be loosing money by keeping your savings in a bank account and not doing anything.

The key point below is that with property you have possession of a tangible asset which not only gives you rental income but also can give you capital growth in value.

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Find 13

Which type of UK Property is desired by overseas buyers

In our recent Find UK Survey of overseas buyers looking to purchase property in the UK, we covered 3 main questions

1. Why do they want to buy a property in the UK?

2. Which type of property were they looking for?

3. Which was their most desired location?

The results are summarized in the charts below

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Find 11

Comparing UK Investment Property in Different Regions

 

This is a comparison for the average prices, rents and % rental yields of investment property in different UK areas.

1.NORTH WEST

These properties are in the North West where property prices are depressed and future capital growth is likely to be strong. These include Manchester and Lancashire Towns. This is the most popular area for our investors.

The chart below shows this area compared with the others

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Find 12

Factors rated important for UK Investment Property

The Find UK Questionnaire survey looked at the factors clients considered to be important when selecting a property for investment.

The questions that was asked was:-

“Rate the importance of each of these factors if buying UK property for investment”

The data in the chart below is shown as an average rating (from 0 to 5, with 5 being most important) for each parameter measured.

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