Guide to Property Finance
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Even after the Brexit vote, the year 2017 has continued to be an interesting year for the UK property market as opportunities abound. However, the Greater London Market is said to have slowed down a little, but other regions of the UK have seen a surprising increase in the investment interest. Following are six factors that affect the market for long distance UK investors: 1: If an investor wishes to invest in a buy-to-let property in the UK, especially in the prime locations like the North, they need to initially look for value. Even though the property rates are increasing, value buying is still important. If you buy well, then you can move on to expect a capital increase in the medium to long term. 2: Ensure that you buy in areas of regeneration. Since you are looking to invest in the prime locations of North West, keep an eye for new train stations, transport hubs or local councils spending on neighbourhood upgrade schemes. The local councils are said to be spreading out more regeneration plans in the coming years.
3: The property that you are investing in should offer lifestyle options that could attract good tenants. Factors like,
4: Keep a count of your gross yields. Ensure that you do not go for any place below 9 per cent gross in the big cities, as you are considered to pay every month for general expenses like levies and any bond repayments (if applicable). As property prices increase, these yields will come under stress so investors need to shop around for the right yields. 5: Ensure that you allow for management and collection fees of around 10 per cent. This is because you will be investing long distance and do not want the hassle of day-to-day issues. However, these fees do not seem to be increasing as of this year. 6: Investors need to invest to hold and not to flip or sell on. Property is a slow wealth creation process with a 10-15 year outlook, especially in places inthe UK. You will be investing for hard currency returns in one of the world’s most vibrant and fastest growing countries.
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