How to Make a Bulletproof Investment as a UK Expat or Foreign National Landlord

Changes in legislation require investors to work hard to ensure their property investments are as bulletproof as possible.

What is an existential question handwritten with black marker

We always ask our clients to consider their investment objectives first.

manchester city center drone aerial view building work

If you want great rental yields at the moment, look no further than the city center.

Manchester pinned on a map of the British Isles

According to Savills, North West, Yorkshire and Humber have the highest capital growth projections of 18.8% over the next five years.

Liquid Expat Mortgages explores how maximizing rental yields and capital growth can be a bulletproof investment for UK foreign investors.

For investors who make thoughtful choices and well-planned investment decisions, legal changes will not hurt the profitability of investment properties. ”

— Stuart Marshall

MANCHESTER, Greater Manchester, UK, 19th December 2022 / — some background.
In Jeremy Hunt’s first statement as prime minister, there was one announcement that jumped out at UK expats and foreign landlords. A move from £12,300 to £6,000 in April 2023 and £3,000 in April 2024. For existing and prospective UK expats and foreign landlords, Stuart Marshall, CEO of Liquid Expat Mortgages said: “Much of the talk centered on how ever-changing legislative changes eat into the interests of landlords. Are you?” I asked.

Recent changes to capital gains thresholds essentially reduce capital gains profits for UK foreign investors and foreign investors. Stuart Marshall said: ‘And this is not the first legislative change in many years to affect the profitability of foreigners and foreign landlords in the UK. Even with the law, there is always value in a quality investment, and we always encourage our clients to consider how to maximize the quality of their investment and make their investment future prospects as strong as possible. To do this, UK foreign investors and foreign investors are encouraged to identify areas of investment, property types, target markets, potential rental yields and capital growth potential. You have to focus on many things.

“At first glance, this may seem like too much to consider,” says Stuart Marshall. “However, many of these decisions are actually informed by other decisions. We always ask our clients to consider their investment objectives first. If so, you’re more likely to want a property with good growth potential, and you know what areas and types of properties to buy.Of course, the purpose of most investment ventures is to make money. , punitive legislative changes could put it at risk.So what can be done about this?

Maximize rental yield.
In order to maximize rental yields on investment property, UK expats and foreign investors should ensure that they are choosing the right type of property in the right neighborhood. This means that the demand for rentals is very high. In 2022, the inner city is the big winner. “If you want great rental yields right now, look no further than the city center,” says Stuart Marshall. Glasgow, London recorded the highest rental growth, with London posting the highest rental growth of 17% year-on-year, followed by Manchester (15.6%), Glasgow (14.1%) and Bristol (12.9%). %), followed by Birmingham (12.3%).Large cities are likely to continue this growth trajectory as well, with a shortage of available rental housing and strong demand from those living there. A shortage of rental properties and a growing student population have meant that many students have been forced into the private rental sector, which has also contributed to rising rents in the city centre. increase.

In addition, many inner-city rental properties have higher EPC ratings the newer they are, and make renovations and environmental considerations easier. This is a great advantage for foreign and foreign investors in the UK. That’s because the new law sets out certain environmental standards that landlords must meet if they want to keep their properties on rent to tenants.

Zoopla forecasts rental growth of 4% to 5% in 2023. This means that UK foreign and foreign investors can continue to make significant profits from their rentals. Higher rental growth and more affordable neighborhoods are the ticket to success for expats and expatriates in the UK. Because you will recover the cost of your property more quickly and take a faster path to profitability. Areas such as Wales, Midlands, Yorkshire, Humber and the North West are all experiencing very high rental growth, yet are affordable for both renters, UK expats and foreign investors. It’s the price. “Sheffield is one of his areas that has received a lot of attention from UK expats and foreign investors lately,” says Stuart Marshall. ). But last year also saw the highest rent growth of 12.4%. Other popular choices include Manchester, Newcastle and Liverpool. By discussing these options with a UK expat or foreign national mortgage expert at her broker, the investor can determine the best area to satisfy the ideal tenants and provide high rents. You can benefit from the yield. ”

Maximize capital growth.
Capital growth is a difficult attribute to predict, but one good indicator of future growth is high demand in more affordable regions. For example, even if there is a very high demand in the capital city, the price of real estate will not increase significantly, so there will be no significant growth. In addition, high demand in the rental sector can also lead to high demand for property purchases. And if the area were more affordable, property prices would have room to appreciate. For example, as mentioned in the previous section, Sheffield is experiencing very strong rental growth driven by high demand. This is because Sheffield is also likely to be a strong capital growth candidate, as it is affordable, benefits from strong rental yields and the high demand in the area will ultimately contribute to strong capital growth. It means making a big investment.

Researching forecasts by other analysts is also helpful in determining the capital growth potential of the region. According to Savills, the North West, Yorkshire and Humber have the highest capital growth forecast for him at 18.8% over the next five years. The North West is underpinned by consistently high performances from cities such as Manchester and Liverpool. Yorkshire and Humber, on the other hand, have shown strong performances from Sheffield and Leeds, but also benefit from excellent holiday destinations such as Whitby and Philly.

“Capital growth is always difficult to predict,” says Stuart Marshall. “When it comes to analyzing rental yields, we have all the data available to foreign and foreign investors in the UK. This clearly means a big return for investors.Also, although it is not certain, investing in an area that is currently popular and has strong rental demand is a good indication that people will continue to live and migrate there. The best thing a UK expatriate or foreign investor can do to maximize the quality of their investment is a professional UK expatriate or consult a foreign mortgage broker. Access exclusive deals with lenders who can also contribute to sex.

Stuart Marshall said, “In the end there will always be factors that work against UK foreign investors and foreign investors. For homes, the legislative change will not erode the profitability of investment properties, and UK property is a highly desirable asset that will only increase in value over time. The rental market could become busier as it means delaying or postponing purchases entirely UK foreign and foreign investors especially need the help of expert UK mortgage brokers By being guided and making smart choices now, you can make a truly bulletproof investment that pays dividends well into the future.

Liquid foreigner mortgage
Ground Floor, 3 Richmond Terrace,
Ewood, Blackburn
Phone: 0161 871 1216

For media inquiries, please contact Ulysses Communications.
+44 161 633 5009

Sergio Pani
+44 7811 326463
email here
Visit us on social media:

s.parentNode.insertBefore(t,s)}(window, document,’script’,
fbq(‘init’, ‘251889322717210’);
fbq(‘track’, ‘PageView’);

Source link

Leave a Reply

%d bloggers like this: