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November 09th 2014

What Would Make An American or International Investor Interested in a London Property

Posted in Market News

 I don’t know what would make you want to invest internationally and buy investment property in London. I do know the reasons why I will buy property in London. My reasons are simple. I want to diversify my real estate portfolio. The London real estate market has consistently given healthy returns to its investors. It is an international hub of business, finance and capitalism. There seems to be an unquenchable thirst for this real estate from foreign investors. And finally I like the healthy appreciation of value on this real estate that is based on a currency that is worth 40% more than mine.

  

One of the biggest mistakes any real estate investor makes is investing in real estate in one area or one country. As the old saying goes, never put all your eggs in one basket. Now, I am fully aware of the real estate meltdown. I felt the pain just as much as anyone else. This melt down was not just a local occurrence it was worldwide. Every person that was involved with real estate or owned real estate took a hit.

But there were pockets around the world that took the hit and got right back up. London is one of those areas that took a good hit during the real estate boom. What is amazing is the phenomenal growth since them. Just 4 years later and the average home price has already sky rocketed past the real estate highs seen during the boom. Cities like Miami FL that have been a mecca for international real estate investors are still tr

November 09th 2014

What Does China’s Investments In The UK Mean For Real Estate

Posted in Market News

Unless you have been living under a rock you know the financial power China yields around the world. In fact China is expected to surpass the United States as the world’s leading economic power this year. The majority of economists predicted that this would not happen for at least another five years. The point being that when a country hits the status of economic super power other countries reap the benefits as well and the UK luxury real estate market is no different.

Several things happen when countries hit the big leagues of economic powers but one of these things is the most important for real estate. The governments want to start creating relationship with other countries by providing products and services. This often takes the form in large corporations opening foreign divisions in the countries where they want to establish these relationships. 

China recently closed several transactions with the UK that totaled about 10.6 GPB. These transactions covered all kinds of things from nuclear power plants, infrastructure and energy. A Chinese investment holding company was also created to invest in various UK corporations.

When foreign divisions are started there is often a major influx of buyers and renters in the area where the new division is started, which is typically major metropolitan areas.  In most cases these will be highly paid executives and management. These will employees will be mostly interested in luxury real estate.

The que

November 09th 2014

How To Invest In UK New Builds For South American Cash Investors

Posted in Market News

Cash heavy investors and corporations may very well want to consider investing in UK new builds. The real estate market in the UK has made a dramatic comeback and investors from all around the world are riding the wave of increased real estate prices throughout the UK. Approximately 70% of new builds were purchased by foreign investors and 30% of luxury properties valued at 1 million GPD or greater were purchased by foreign investors.

 

The UK is about to pass, if it has not already, New York city as the world’s number place to invest in foreign real estate.

 

There are several ways South Americans can invest in the UK real estate market with new builds. They can buy and flip, buy and hold or they could just lend money to builders and developers in the housing market. All methods are proven and profitable ways to invest in new builds.

 

Buying and flipping may be the least attractive way to invest in new builds but it also may be the most attractive depending on how active you want to be with your investments. If you are looking for a more hands off approach I would recommend staying away from buy and flips unless you have a trusted advisor you want to task with this approach. If you like being active with you investments than this may be the route you choose to follow. Depending on the amount of capital you have to invest this could turn into a full time operation. You will need to work hand in hand with a good re

November 09th 2014

Luxury London Property Investment Strategies – The Cash Buyers Choice

Posted in Market News

You are flush with cash and looking for a good investment. A nice place to park you cash that will yield a nice return and be backed by a true asset. The one asset you can invest in and truly enjoy while it is earning you a nice yield is real estate, specifically luxury real estate in London.

 

Why London?

Simple. London has produced an average return of 7% per annum during the last 30 years. That is a much better return on investment when compared to other low risk investments such as bonds or money markets. And when was the last time you took a vacation to your bond? The 7% annum does not take into consideration letting the property for special events or as a vacation lease. When factoring in these options the returns per annum can be significantly higher. If you are only planning on utilizing the property a month or two out of the year it only makes sense to lease it out during the times you are not there.

 

Why luxury real estate? There is only a finite amount of luxury real estate in London. While more and more luxury real estate is being developed it is not keeping up with demand. Simple economics tell you that when demand is high and supply is low prices increase. And this is exactly what is happening with London UK luxury real estate market. However, what you need to keep in mind is that there is really only a couple of areas in London that are considered “luxury areas”. These areas are Knightsbridg

August 24th 2014

How Can A Foreign Investor Take Advantage Of The London Property Market?

Posted in Market News

 Foreign InvestmentThe London property market has always been a magnet for foreign real estate investors. The reason for this that it is an international hub for business, trade and finances. Because of this London and England have maintained a long, strong and healthy economy. Stability like this attracts investors as the risk is significantly less compared to other countries real estate markets. This stability also creates a certain minimum return on investment that investors and investment firms like. With all of that being said there are some things you need to be aware of.

First and foremost real estate and real estate transactions are different in every part of the world. What is common in your country may not be the case in London. In fact there will probably be several things that you must do that you have never even heard of. One of these things is title insurance. If you have never heard of such a thing it is actually quite a useful insurance and helps protect you as the buyer by insuring the deed to the property is free and clear of any defects or claims. Believe me when I say the last thing you want is a real estate legal battle in a foreign country. Then of course there are the mortgage options or lack thereof. As well as closing fees, finance fees and taxes due at closing. What I