Wed. Feb 21st, 2024
UK Property MarketWhy Millionaires are investing in the UK Property Market in 2022

The UK is home to a thriving global and national business cornucopia, particularly in financial and investment services. It’s trading status is on par with the U.S. and Switzerland and the IMF (International Monetary Fund) shows that out of all the advanced global economies, the UK will be the fastest-growing by 2022.

And with the advent of global businesses, real estate is booming more than ever. It is a fact that real estate investing has contributed to over 90% of the globe’s millionaires. Investing in property has, is and will always be one of the most reliable methods of wealth-building, as well as a vital aspect of a well-diversified portfolio.

The GBP is Considered a ‘Safe Haven’ Currency 

The UK is heralded as a world-leading innovator in business, industries, renewable energy and education; and with all the best jobs being at the hub, it will continue to be a top choice for people to live in and grow economically. The UK is hallmarked by –  

  • A High-spending Consumer Market 
  • World-class Talent 
  • Business-friendly Regulatory Environments 
  • An Open and Liberal Economy 

These are some of the aspects of the lifestyle which constitute the British pound as a ‘safe haven’ currency by the European Central Bank. To achieve a ‘safe haven’ currency status, a country must have – 

  • Strong Growth-oriented Economy 
  • Stable Political System 

The British pound has emerged as a safe-haven and continues to show major resistance and rise against the American dollar.   

Higher Rental Yields and Lower Interest Rates Compared to other Economies 

US, Canada, UK and Australia are seen as desirable for real estate investments. 

Generally speaking though, the UK is a pretty safe bet when it comes to investing in property, compared to the rest of the world. The interest rates are low, and it’s real estate is relied upon as some of the most secure on the market. 

However, when looking at rental yields, the difference between the annual rents and property prices, property investors might be surprised to find better returns in Europe, particularly the UK, than the rest of the globe. 

UK is Preferred for Foreign Investments 

The UK has been given the title of the top global property investment hotspot in a survey conducted by international law firm DLA Piper. If you’re from overseas, then the buy to let option will be the most profitable venture for you. Whether you want to decide to live in the house in the future or just use it for rent, there are many ways to maximize profits on your property. You will gain from –

  • Strong Capital Appreciation  
  • Constant Demand for Rental Properties 
  • High Monthly Rental Yields 
  • Tax Advantages 

The UK property market has already seen an influx of interest from Hong Kong buyers since the new path to citizenship was announced. And this will likely pick up even more. 

Investing in the UK still remains a top priority for Asian investment, and real estate experts anticipate the volume of Asian real estate investor’s capital to increase by an assured +80% in the coming years. UK property is in high demand, and that ought to tell you a lot about the opportunities here, and what you can expect for long-term profits.  

In fact, according to research by Aston’s, during the first 9 months of 2020, Hong Kong buyers were the most notable foreign buyers of property in the UK. They purchased £305.6 million of prime London homes and 6,438 homes amounting to £8.1 billion all across the UK.Buying property as an investment is a great way to generate consistent monthly cash flows and diversify your portfolio. We urge you to do your research and talk to reliable sources who will take care of you and your goals. P&A is a trusted name in Birmingham, with an established reputation for high quality standards and transparency in our property investments in UK.  

Tourism in the UK is Always on the Rise 

Tourism is always rampant in the UK. In this day and age,hotels aren’t the only, and many travellers look to rent from Airbnb during their visits. Many travellers even search for long term accommodation of upto 6 months, and that’s where you can get full occupancy rates on your properties. 

Invest in good quality areas in a central location of the city, and chances are you’ll make an extremely high profit on it! Pluxa is our luxury serviced apartment booking website, and exists as a testament of this reality. The spaces are beautifully furnished and bookings are always at an all-time high. 

Property Strategies 

Even with costs going up every single year, the UK property market is still a very good investment for those who want to move to the United Kingdom or for those looking to save and grow their capital.

No matter what issues you have when buying a house, our qualified letting agents at P&A are always happy to provide you with end to end support, all the way to the completion of a deal. Here are some high cash flow strategies to get you set up in the right way.

  • Buy to Let – in simple terms this is where an investor purchases a property which they then let out to tenants to generate a monthly income regularly. A lot of tourists actually travel backpacking and interrailing, so these people could be the ideal target audience for someone investing via this strategy. 
  • HMO’s (Houses Of Multiple Occupancy) in which each room is rented out by a different tenant which then creates multiple sources of income. 
  • Rent To Rent or Rent to Serviced Apartment – the purpose of this investment can be anything. In this, you rent a property and let it out to tenants/guests after adding value to it. This strategy is probably one of the best strategies to get high returns and daily income. 
  • The BRRRR Model – this is where you buy the property below market value, then you refurbish, refinance, rent and repeat. You can then use it for HMO or SA for a higher cash flow than the Buy2Let model. 

The real estate market in the UK is very promising. This is why many  investors are interested in property investment in UK.

Choosing Birmingham 

The thriving economy and growing population in Birmingham make for a great investment opportunity. Birmingham prices are affordable, and offer some of the best rental yields in the country.  Plan and structure your investments by – 

  • Finding investments to match your short and long-term goals according to your needs 
  • Search for locations that will provide high rental incomes (7-10%) 
  • Source the perfect property investment with reliable contacts like P&A 
  • Look for someone to support you throughout the entire investment process 

P&A is a trusted name in Birmingham, with an established reputation for high quality standards and transparency in our property investments.  

Consistent Returns with Proper Planning 

The returns available on UK property investments are consistent and high; more than in US or Australia, so there is little risk involved.

Short-term Goals – Plan for 12-24 months – Aim for a BRRRR model or Buy to Let, to own and get high rental yields. Keep reinvesting in this reliable model when you’ve hit successful cash flows. 

Mid-term Goals – 2-5 years – Continue building your portfolio and working toward your goal. It should be easier now than it was at first. Invest in more properties and keep sourcing more deals to gain from. 

Long-term Goals – +7 years – You will benefit from capital appreciation. The most successful property investors hold onto their properties and then make the sale during the right time of the cycle for a high return on investment

Continue to learn about what options are available for you, and keep growing. Knowledge is power, especially while planning your investment strategies. P&A Property Sourcing is built by a team of property investment experts who have revolutionised the real estate landscape with their knowledge and business acumen. Put your savings towards securing future income by choosing us as your go-to property investors. 

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