How to invest in UK property for expats
Investing in property in the UK can come with additional challenges if you are currently living overseas or an expat.
Finding the right deal
Sourcing is a huge part of the property investing journey. Once you have decided on your target location, you also need to establish the best type of investment for you. Many investors spend hours attending viewings, researching local trends and compiling data.
It is nearly impossible to do this while living abroad.
Instead, you will need to partner with a trusted third party to help you source suitable deals. At Hoxton Property, we regularly research and source great deals for our investors.
We combine the expert knowledge of professionals with decades in the market with local partner agencies and thoroughly researched data. This ensures all our available deals are vetted and hands-off.
Working closely with a mortgage broker
You may find it difficult to get expert advice locally. Dealing with mortgage brokers in the UK through calls and across time zones can add extra stress and delay to an already complicated process.
Many brokers in the UK may not specialise in international purchases and any mistakes or omissions on their part could prove costly for you.
Hoxton Property partners with some of the best ex-pat focused mortgage brokers and have helped many other expats or overseas investors find the right mortgage product. We understand the importance of working with partners that can provide for our niche client needs.
Legislation, tax and foreign currency exchange
Familiarise yourself with any legislation, banking regulations and anticipated taxes.
The repatriation of funds from abroad for a property purchase can incur large tax liabilities if not handled properly. You should also be aware of how your expatriate status affects rental income and potential capital gains or inheritance tax exposure.
After living and working abroad for an extended period, you will need to consider the implications and extra expenses involved in currency exchange if your savings are offshore. Ideally, you should plan in advance so that you have the necessary funds in Pound Sterling prior to purchase.
Alternatively, we can support you with foreign currency exchange.
Closing a deal
You have found the perfect property, put in an offer that has been accepted and it’s now down to a closing date. As well as the contracts that you will need to sign, you will also want to arrange for a property inspection and get started with any renovation or repair work.
The process of getting a property ready for new tenants can be long and expensive. Arranging access for contractors, handing keys over, checking on the quality of work and then advertising and showing the property are all tasks that cannot be handled from an international location.
All things considered; this kind of property investing is not technically passive income. Choosing to organise everything yourself can involve much more work than you originally expected. To avoid these headaches and turn your investment into a truly passive income, you should invest in ready-made, buy-to-let deals with an all-inclusive turn-key service.
Indeed, most of our investors will never even see their investment property. We focus on returns, not the property itself.
At Hoxton Property we have developed a way to help our clients with this process. We’ll handle the management, tenanting and even furnishing so your distance from your asset has no impact on your investment returns.