Sitting between the America and Pacific, adjacent to the Continent, the UK has one of the most geographical advantages in the world. The capital city, London, is the busiest metropolitans and financial hubs within Europe, and is the ideal place for many multi-national companies as headquarters. In addition, UK developed an advanced medical system, with which residents are free of charge for medical consultations in public hospitals. The UK is famous for its higher education standards and one of the most attractive destinations for overseas students.
Why invest in the UK Property Market?
The UK has always been the first choice for many overseas property investors. The ‘buy to let’ (BTL) property investments actually outperformed all other main asset classes including bonds, equities and cash over the past 18 years.
In fact, overseas investors make up over 80% of the BTL market and this number is increasing on a weekly basis. Due to the rising costs of the Hong Kong domestic housing investors of all levels have sought to find a stable country in which to invest their hard-earned cash. With interest rates at a historical low for over a decade, the UK property investment market has proven to be an inflation beating investment.
The UK property laws are similar to those in Hong Kong, unlike many emerging economies the UK has no restrictions in place for foreign ownership. This also provides the investor with a safe and secure exit.
At one-time London was once the first choice for many overseas investors, but with the phenomenal 400% surge in prices over the past decade investors are seeking alternative cities in which to invest. Manchester has now become the favourite and the demand for properties in this Northern Powerhouse show no signs of slowing. The demand for BTL investments isn’t just limited to Manchester, most major cities north of Birmingham have seen a major influx of developments. These include cities such as, Liverpool, Leeds, Sheffield and Newcastle. The high-speed rail network (HS2) has proven to be a game changer in the investment market. Commuting times from major cities to London will be cut by almost half, this will enable many workers in London to seek housing in areas where they can achieve more value for money and still be within commuting distance.
A strong return on investment (ROI) plays a major part when deciding on an investment property. The north of England has the unique combination of strong yields and plenty of room for capital appreciation. In a basic comparison, the purchase price in Central London is on average 400% more expensive than central Manchester. Yet, the yields in Manchester are currently averaging 5% against 2% in central London.
California is a populous state, located on the west coastline of the USA, famous for its diversified industrial presence, such as San Francisco and Los Angeles. It has the world’s most popular tourist attractions, universities and mega technology companies such as Alphabet of the Bay Area, Apple, and Qualcomm of San Diego. Due to favorable climate and astonishing landscape, California is also an ideal location for domestic and foreign migrants. Many cities by the south of California are said as the ‘one of the best living cities’. Since the 20th century, real estate prices and rents having been leading those in the different states of the US, implying its great attractiveness.
Ontario is the most populous province in Canada, located adjacent to the Niagara Falls. Surrounded by a quiet and peaceful environment, Ontario is regarded as the ideal place for retirees. It also has well-developed infrastructure facilities, such as medical and education, a suitable place for children to study.