Real Estate Investment
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Investment in real estate in the UK. Opportunities and yield expectations
Our company specializes in investments in real estate in the UK. We offer our customers end-to-end service including the search of facility investments with the greatest revenue potential, re-development or repair (if necessary), lease, ongoing maintenance, and sales, if the maximum desired income is achieved or the plans of our client have changed. We are trying to take upon ourselves all possible issues connected with this type of investment, leaving only the income to the investor.
We consider this type of investment most stable in conditions of high volatility of commodities and securities. The current annual yield from the rental scheme (buy-to-let) is from 3 to 10 per cent, and, considering real estate value growth, from 5 percent to 25 percent. As a rule, our customers consider both types of yield, acquiring property either in the oldest and most popular areas of London, or in the new ones with fast-developing infrastructure and with high growth potential. The main and the most comprehensive real estate market to foreign investors is London with its suburbs. Meanwhile, according to our expert opinions, other cities, such as Manchester, Birmingham, Liverpool, Edinburgh, Glasgow, Southampton, and other major historical, industrial and educational centers, also deserve the attention of investors.
Buying property in the UK, you can be confident in the safety of your investment thanks to stable political system, strong currency (pound remains more expensive than the dollar and the euro), historically confirmed annual flow of investments, advanced and the differentiated economy of the country.
In case of acquisition of real estate on a “buy-to-let” scheme, you can rely on bank loans (up to 70%). Our company will be glad to assist you in this process. Please remember that in this type of purchase, neither you nor your family members have the right to live in an apartment / house. This type of investment is intended solely for rental to the third parties.
Purchase for the purpose of development or redevelopment
For those active investors who wish to be personally involved in the creation and / or increase of the added value, we offer investment in the form of the purchase of land or an existing property for further development or redevelopment. To date, when a cost per square meter in some areas in London exceeds 10 thousand pounds, the purchase with the aim of redevelopment can be considered quite an interesting and profitable type of business. For example, buying a property for renovation or reconstruction from commercial to residential, you enter into a rather long-term, nevertheless undoubtedly profitable project. We can help you to find an attractive project, develop it, coordinate it with local authorities, obtain permission for the reconstruction (permission), carry out work on the reconstruction or repair, and lease or sell with the maximum benefit for you.
With this type of investment all the rights to property are granted directly to the investor. The average investment period, according to our estimates, is 3 years from the moment of the purchase, further reconstruction, and ending with the lease or sale. The acquisition of land for development can attract investors with a planning horizon of more than 5 years, as the processes of purchasing, designing, obtaining the necessary permits, construction and sale / lease usually require more time than in case with the reconstruction. In this case, you can consider the option of buying land for housing in order to sell all or a part of the house / apartment. The most popular places among investors are the coastal areas of English Channel and southern and eastern parts of England, such as Dorset, Devon, Hampshire, Sussex, Kent, and Essex.
Buying land for development or the property for re-development, you can count on a bank loan (as a rule it is 50-70% of the purchase price). In the future, after all the works are finished, we can help to you make a reassessment of the investee and conduct refinancing. In this case, you can either fully or partially return the money invested earlier.
Purchase via Trust
One of the types of investments in real estate is an investment in REIT (Real Estate Investment Trust).
This form of investment is designed to improve the investment climate and attract additional funds in real estate on the part of both corporate and private investors. This type of investment is fully regulated by the UK legislation. All trusts (REITs) are required to be registered on London Stock Exchange or on Channel Islands Security Exchange.
In this case, you do not need to participate in all the processes related to the acquisition, ownership, management, and further sale of real estate. You do not need to worry about changes in tax and civil legislation in the UK, and your name will not even appear in the property documents. By investing in the Trust, you, in return for your money with a certain share of the Trust's annual yield, completely shift all the possible questions and problems on the shoulders of management. If at any point you want to get out of the securities, you can easily (in minutes) sell them via the stock exchange broker.
Trusts in the United Kingdom are subject to a special preferential tax regime; income tax is zero! At the same time, 90% of the annual profit is to pay dividends. The taxes, in their turn, are paid directly by the owners of the trust shares to the country where they live more than half a year. Some investors almost do not pay taxes on this type of investment, living in countries with zero tax on income or investing through offshore companies.