If you’re ‘deposit ready’, what are you waiting for?
As part of a mortgage advisory team here at Hoxton, we appreciate the enormity of the decision to buy a home or invest in a property-to-let. That’s why we have a dedicated team of specialists who are consistently tracking and assessing the market.
Of course, there’s always an abundance of queries and concerns that hold-back potential investors, and today I’m going to help you put a few of those worries to bed so that you can get on with the business of growing your property portfolio:
1. Should I hold off because of the rate rise?
In a word, no. The interest rate rise will only really have a (minimal) impact on people who already have a variable rate mortgage. As an expat investor, there are a range of mortgages available to suit your individual needs. It is important to sit down with an advisor to work out which one suits your personal economy the most.
2. What about slow house price growth in the UK?
Believe it or not, this is yet another aspect that can work to your advantage. Sellers are far more willing to accept offers that fall well under the asking price when there’s little or no house price growth. Generally speaking, expat investors are also not tied to the property chain, which benefits those sellers in the UK who are keen to move without complications.
3. Is it worth waiting till after Brexit?
‘Brexit uncertainty’ is a term we’re all too familiar with, and I think it’s worthless to try and make predictions about post-Brexit Britain’s property market at this moment. However, focus on the here and now and the facts speak for themselves. The pound-to-dirham exchange rate is favouring your currency here in the UAE. With that in mind, there is no better time to buy.
4. Theresa May’s targeting foreigners with extra stamp duty – is it still worth investing?
Yes, invest. For us as foreign and expat buyers, the UK is a safe haven for our money – that is not going to change. Research has suggested foreign and expat investment has actually pushed up property prices in the UK, and so as a new levy in an attempt to tackle the housing crisis, there are now plans to impose extra stamp duty on foreign buyers. When you consider this stamp duty will fund a drive to tackle rough sleeping in the UK, I’m certainly not going to bemoan a bit of ethical ‘payback’.
Should you wish to explore your options, pop into Hoxton HQ for a cuppa and a chat with one of our Mortgage advisers.
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