Cheapest Areas To Buy A Property In The UK part 2 – Part one is here.
10 Benefits of Buying Property in the UK
The world’s economic systems and market fluctuations can make it hard to determine whether it is a good time to buy or sell the property. If you are thinking, after reading all this, that now might be a good time to invest in UK property, the following information will be of interest.
Property prices in the UK are actually at their lowest point for 6 years. This makes now a very good time to buy property in the UK and means that if you were to invest in either residential or commercial property, then your investment is likely to grow considerably over its lifetime.
Investors who anticipate future trends and seize the moment to buy UK property when it is ‘on sale’ can win big in years to come. Now, let’s quickly walk you through the benefits of buying property in the United Kingdom.
1. Capital Appreciation
The UK property market has historically risen at a rate of 1.25% per month – more than any other market in the world, so it’s easy to see why investors are keen to buy UK property. Moreover, the UK is a stable economy with modest inflation, a shortage of property, and an ever-growing population, making it a good place to invest in.
2. Security
Historically, UK property has been very stable and not subject to violent fluctuations in price – quite the opposite of the stock markets. The UK property market has also had a high rental yield of 6%.
This is way above any other market and ensures that you can always sell your property for a reasonable price. Many investors like to use buy-to-let mortgages, which produce an income on their investment by housing tenants in their properties.
3. Growth Potential
The UK population is on the rise and is expected to increase by more than 10 million people in 30 years’ time. This means that there will be a growing demand for housing, which means there will always be a high demand for rental properties and an increased demand for houses and flats to purchase.
4. Fundamentals of UK Economy
The UK economy is currently very strong. Government debt is low, employment is at record levels, and the inflation rate remains within the government’s target band. These factors all contribute to a stable market, ensuring that there can be no dramatic price fluctuations.
5. A Safe Haven for Your Money
With so many financial uncertainties worldwide, investors are increasingly looking to buy property as a haven for their money. House prices have not fallen substantially since the recession and so offer reassurance that it will be possible to get your money back when you need it.
6. Good Rental Yields
As mentioned previously, the UK has one of the highest rental yields in the world at 6%. This figure is way above most other markets and ensures that if you were to rent out your property, then you would see a good return on investment. That’s why more and more landlords are choosing to buy UK property.
7. A Growing Market
In the next 50 years, there will be a doubling in the number of people aged 85 or over. This means that elderly care will be a substantial part of the country’s service industry. In addition, with life expectancy on the rise, there will need to be a lot of care facilities across the country. This presents a good investment opportunity, as you can see there is a growing market for this type of UK property.
8. A Strong Rental Market
The UK has one of the highest rates of homeownership in the world at around 70%. This means that even though buying UK property has become more accessible to more people, there is still a high demand for renting. This makes the UK rental market one of the most secure investment opportunities in the world.
9. A Growing Population
The UK has seen some good growth rates over the last 100 years, and these are expected to continue on an upward trend for many decades to come. The European Commission predicts that by 2030, the UK population will have grown by over 1 million.
The reason for such a high growth rate is the increase in birth rates and an influx of immigrants. While it means busy roads and packed trains, it also means that there will be a growing demand for housing which again makes buying UK property a secure investment.
10. At Least You Can Make Use of Them
In tough times people will often say, “I’m not going to invest my money; I’m just going to spend it.” However, in a world where the cost of living is ever increasing, purchasing UK property that you can rent or live in is a very sensible investment. At least you know that when you buy, you can make use of it.
Frequently Asked Question about Buying Property
How do I buy a property in the UK?
Before you can purchase a house or flat, usually you need to have somewhere safe and secure to live. Most of the time, the best option is to rent a place first while saving money for your deposit on your new home. Besides, make sure you get all the necessary deposits to make your application.
How do I find a property to buy?
Many websites can assist you with finding your perfect home. Some sites include Rightmove, Zoopla, and PrimeLocation. These are all free to use and easy to use if you know what you are looking for beforehand. So, it is a good idea to make a list beforehand of everything you want from your future home.
What type of deeds should I get?
You will need three types of deed for your property purchase: the Memorandum and Articles of Association, the Transfer Deed, and the Lease if there is one. You can get a solicitor to do this for you, or the Land Registry will help. Also, if you are buying with someone, then the Transfer of Equity will be needed.
Can I buy a property without hiring an agent?
Yes, some private properties are sold ‘off-market.’ These privately owned homes are usually not up for sale on Rightmove or Zoopla, etc. Usually, bigger chain estate agents are used, and many people find these off-market properties through word of mouth or social media.
How much will I need for a deposit?
It depends on the price of the house and what lenders you speak to, but usually, you need at least 10% of the purchase price as a deposit to secure finance. If it is off-market, then 5% could be sufficient.
How much will a solicitor cost?
You can expect a solicitor to cost you around £600-£1000 per lot, so if there are 2 lots, then around £1200-£2000. If it is an off-market property, then more due diligence may be required, and therefore you would need a solicitor involved.
Conclusion
Buying a home or property is one of the most expensive transactions you can make. When it comes to buying, many people cannot afford the luxury of buying a home in one of the more expensive regions. However, you do not need to worry if you are looking for cheaper options. Refer to this guide to check what we’ve unleashed.
