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

August 24th 2014 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 am getting at here is that you need a good solicitor (attorney) working with you to help move any real estate transaction along.  

After the initial education of how the London real estate industry works and its processes you need to decide on the type of property you want to invest in. Will it be houses, flats, apartments, commercial or new builds. Again a good real estate agent can help guide you as to what will make the most amount of sense based upon what you are most interested in gaining in real estate investments in London. Sometimes it is a good idea to follow the herd. In this case we are following the foreign investors to see where they are parking their money in the London market. The hottest way to invest your money is to look at new builds. Over 70% of the new build market is going to foreign investors. This really makes the most sense as absentee landlords want to own property that is going to as hassle free as possible. New builds also mitigate risks and garner the best returns on investment as there is very little to no additional capital outlay after the initial purchase. Additionally upgrades, renovations and other major expenses will not be necessary until man years down the road.

In summary it is relatively easy to for a foreign investor to take advantage of the London real estate market. All it will take on your part is some initial education and surrounding yourself with real estate professionals to help guide you along the way. Find a great solicitor, real estate agent and mortgage banker and you are well on your way to investing in your first piece of London real estate