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Investment in UK real estate

Investment in residential and commercial real estate in the United Kingdom have proved to be decidedly lucrative due to its high reliability and profit performance. The demand for buildings of various use classes in London and other cities significantly exceeds the supply.

The UK has experienced a significant increase in new development projects over the last years, all thanks to progressive government support. Construction rates are rapidly gaining pace. Most of the counties are planning to fuel up the local residential development and providing more land for housing.

Given that the UK laws are quite favourable to overseas investors, investing in London residential development may be more economically advantageous in the long-term than purchasing the existing houses.

Modern development projects deliver on creative and innovative ideas implementing new construction technologies and materials with special regard to comfortable living standards. Such property attracts buyers and pay off very quickly if approached properly and sensibly.

According to recent research, the positive tendency in the London development market is a major factor to consider London real estate under construction investments. New lands for construction and legislative and financial support increase overseas interest in new houses development.

New Home Investments in London: buying an apartment

Investing in new-built housing has become a new trend in the global investment market. This includes all new development projects that are currently under construction or have just been commissioned.

The  main appeal of investing in new buildings is about buying-off a property after construction or paying a share of the value while it still under construction. Most investors prefer to resell their new apartments when the development project is still in the course of construction. Such investments have the following perks and benefits:

  • You pay only 20% of the total property value (when reserving an apartment for a specific client).
  • You have a good chance to resell the property with a capital gain. On average, construction projects rise in price by 9% annually. Investors are advised to make a 20% deposit and resell the property in 1-4 years. Such a scheme certainly guarantees income.
  • You can save on Stamp Duty when investing in London New Homes. An investor who has paid the deposit and secured a residential property can resell the property without the risk of paying a capital gains tax.

Overall, New Homes development projects are largely sponsored be overseas investments. In 63% of cases, New Home buyers are foreign investors who invest into real estate priced up from £ 5,000,000. At the same time, about 88% of capital investments are received even before the completion of construction.

London real estate investment risks

London real estate investment is recognized as the most risk-free endeavor. The following market features contribute to minimizing the risks of capital investments:

• Constantly growing competition keeps up the demand in residential housing and secures profits.

• Constantly rising prices attract overseas investors promising either one-time large financial return by reselling the property or regular income by letting it out.

• Residential housing shortage is a constant and common challenge in London. The sale offers do not fully cover the existing demand.

Together these factors minimize investment risks, ensure price stability and provide a constant influx
of new investors to residential real estate market in London.

 

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