How Can Foreign Investors Become Successful UK Landlords?

The Heaton Group, the UK’s most forward thinking property group, understand that a number of overseas property investors find it difficult to invest in the UK property market due to a lack of knowledge of the legal implications, current situation on the property market and the initial process involved.

It is actually far easier for foreign investors to become successful UK landlords than ever before. With capital, time to conduct research and a number of experienced property development experts at hand, more international investors are choosing to invest in the UK property market.

london to dubai investments housing properties development projects far east to englandThe UK is a highly desirable place to invest, especially in high quality and minimal maintenance HMO properties as property development companies can manage them, without an investor needing to travel back and forth to the country.

Here are 5 simple steps for a foreign investor should take to successfully become a landlord in the UK.

Step One: Research

The most important step, a serious property investors can take, is to conduct thorough in-depth research into the UK property market, before they begin to consider investing in property.

Deciding when and where to invest is the most critical factor to consider in order to guarantee that you make a good return on your investment. 

Understanding what type of property is in demand is one of the major parts of your initial research into the market. At the moment, young professionals in the UK are in need of high quality modern accommodation in city centre locations.

By analysing the UK property market as a whole, you can then narrow down your research to a particular region, city and then town. This will help you pinpoint an ideal investment location. 

Step Two: Visit

Once you have decided when and where you want to invest, it is time to take a valuable trip to the UK.

When planning your trip, consider contacting experienced property experts, who you can meet and discuss your plans with.

Make sure you organise a number of interesting properties to view with the intent on investing in them during your time in the country. Be aware that there are many of property investors who have the cash ready to snap up properties as soon as they come on to the market, so don’t spend a long period of time debating whether or not to invest, as you will risk losing the property. (2)

However the rise in the number of international investors interested in the UK property market has meant that some developers have chosen to market their new projects in Hong Kong and Singapore before promoting them in the capital. This means that in some cases, foreign investors have not needed to travel to the country where they plan to invest before buying the property. (1)

Step Three: Experienced Property Developers

If you plan to invest in an off-plan property, you should invest with a highly experience property development group, such as The Heaton Group.

Such companies pride themselves in delivering maximum rental yields with minimal maintenance in a third of the time of the average property developer. The quicker a property can be developed the sooner tenants can move in a begin paying rent.

In addition, companies who have experience in the industry will be fully aware of any legal issues regarding a property and it’s development and will ensure that these are considered and dealt with on your behalf. This is one of the major concerns most overseas investors have. (3)

Be sure to ask as many questions as possible when discussing a potential investment opportunity with a development team, as they will be fully aware that you might have concerns and will be happy to reassure you.

Step Four: Minimal Maintenance

As a foreign investor, you don’t want to be forced to travel back and forth to a country to take care of maintenance or tenancy issues. Often a hands-off approach to property investment is needed.

The Heaton Group offers a unique and simple investment process for foreign investors, as they consist of a team of renovation experts, property developers and a well-established local lettings team. This means an investor has the freedom to invest and then let the property experts manage their property for them.

Step Five: Diversify Your Investment

Spreading the risk of your investment is one of the best ways of guaranteeing a healthy return.

One way of doing this is by diversifying your property portfolio with a mix of residential and commercial properties as well as HMOs, which offer a more stable financial investment. Read more about the rise in demand for HMO properties. 

Another way of diversifying your investment is through partnerships with development companies. The Heaton Groups offers an exclusive chance to invest in property with a guaranteed return. For more information please contact John Heaton at john@heatongroup.co.uk or call on 01942 251 949.

Sources:

1. The Guardian - Foreign investors buy 80 percent developments

2. This Is Money - Foreign investors snap

3. Belgrave Atlanta - Overseas properties tips

Featured image via Google Maps.


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