Buying UK Property From Dubai (2021 Update) – that will be the topic of today’s article.
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Despite being in a downtrend for several years in the turn up to this year, the United Arab Emirates real estate has trended positively over 2021. After the Covid-19 and the Brexit transition, new predictions for a booming UK property market are optimistic. In fact, the market is considered more varied than ever.
With growth expected in key regional areas over the next five years, plus London’s slow recovery, the UK real estate market is becoming a place to invest. After property prices rose by over seven percent towards the end of 2020, we have seen certainty in return to some sectors. So, are you ready to explore the UK’s real estate market?
Well, if you’re investing in UK property from the United Arab Emirate, there are many things to consider. With a favorable exchange rate, huge range of options, this is one of the best times to take advantage of the UK property market. Whether you’re looking to diversify your portfolio, or you want to invest in the UK property as a first-time buyer from the UAE, UK real estate market offers great opportunities.
Have you been surfing the internet to get the right information about buying UK property from Dubai? Look no further, as here’s the right platform. So, it’s better to discuss the pros and cons of buying UK property from Dubai than to check other platforms and see misleading information that’d affect you.
However, in this article, we are keen to walk you through the concept of buying UK property from the United Arab Emirates. Aside from this fact, we will walk you through the areas that are good to invest from Dubai. Remember, investing from another country can be a challenging process, so let’s begin.
Best Area to Invest in UK Property
It cannot be easy to gain a thorough understanding of a market from a distance. That’s why estate agents are always the first set of people to look out for. They might be reluctant to give a true market price, especially when the market is falling. Not only that, but other information sources can be confusing.
With that being said, you should know that the best course of action is to have a realtor or solicitor working on your behalf. However, he/she would give you a clear and concise impression of the market, and help you deal with it. Without further ado, let’s quickly walk you through the best area to invest.
As mentioned earlier in our previous post, London is one of the best places to consider. With the last couple of year’s political uncertainty, much of London has seen prices falling as much as around 25 percent around the peripheries. With that being said, London is now seen as a great place to invest, particularly if you’re buying in dollars or almost anything except sterling in today’s modern world.
East Midlands in the UK
As disclosed earlier, Bridgford/Edwalton, the suburbs of Nottingham, is buzzing with plenty of independent shops and restaurants. This means it’s a popular place where you can invest in UK property. More so, house prices have climbed rapidly over the years, and there is certainly a grand design movement going on. Not only do these spots have good road links but regular fast trains to London’s Kings Cross.
The Cotswolds in the UK
Cheltenham had the highest increase in value for the whole country and has today got a number of good opportunities. Aside from this fact, market towns such as Tetbury and Cirencester and bath across the Cotswolds have a reliable investment footprint and provide reliable income streams for tourism in the UK. Not only that, but the houses are around the lakes of South Cerney have become very popular, and you can only pay stamp duty on the land value.
As an expat that wants to invest in UK property from Dubai, Exeter is probably the best yielding area in this part of the West Country as the demand from three disparate groups of people is becoming much. The increased provision of purpose-built student accommodation by corporations has taken the gloss off the traditional Victorian terraced buy-to-let. This way, the demand for affordable family homes has more than filled the gap.
West Sussex and Surrey
Good areas in Hants are mostly based around train stations. Therefore, if you’re looking for more houses to invest in, this place seems to be better. Aside from that, Haslemere and Petersfield stations get fast service from London in 50 and 65 minutes respectively and so are always popular, and houses hold their value well.
Types of Investment Available in the UK
If you’re planning to dive into UK property investment from Dubai, you should know more about the types of available investment options. This is because; investment in the UK is full of choice as there is such a wide range of property options available. Here, opportunities include everything from small apartment units and student accommodation solutions to high-end properties in the London city center.
With so many types of investment options available for Dubai residents, deciding which one is the right option can be a little bit daunting. In most cases, there’s no right or wrong answer as it simply depends on your reasons for buying the property. Without further ado, below are the popular investment types.
Buy to Sell Investment Type
The buy-to-sell investment type is what a lot of Dubai residents have been doing. This way, the locals or expats buy the property at a lower price and intend to sell for a higher price. Moreover, the price increase will come from either a renovation/development to property or through simply buying at a low price in an area that’s set to experience rapid growth in the long run.
Buy to Let Investment Type
The buy to let the type of investment is another thing to put into consideration. In the United Kingdom, a standard property is usually a modest house purchased to generate income in the long run. A property like this can and often does still experience a price increase. However, this is not the primary goal of the achievement but to make a profit while renting the apartment to a UK resident.
Student Accommodation (UK)
The student accommodation is a small unit apartment built-in for the student to reside. This investment normally offers great returns but does not experience the same capital growth unlike a typical buy-to-let investment. While doing this, you can be making your profit every year or partner with schools for profits.
Popular Property Types in the UK
Bungalow: A detached house all on the ground level that usually has a distinct style
Cottage: This is a small detached house commonly found in the British rural countryside. It is made with thick walls and small windows. More so, these properties were originally made for agriculture workers and their families.
Semi-Detached: The semi-detached is similar to a house with one distinct difference. A semi-detached property, as the name would suggest, is not fully detached but shares one of its sides with another property.
Terraced House: This is a building or an apartment with a row of houses that share walls on both sides. Moreover, this house is usually narrow with small gardens.
Flats: Flat is popularly known in the western world, and it’s referred to as apartments in most countries. This type of apartment is usually found in densely populated areas and city centers.
How to Manage a UK Property from Dubai
Property investment in the United Kingdom can serve as an excellent investment for new buyers who live abroad. However, this can give them a steady income stream to fund their lifestyle in another country. Meanwhile, being a long-distance homeowner comes without any challenge.
Again, communication can be difficult, tenants can’t be met or screened-in person, and you may have to entrust somebody else to carry out viewings for them, should a tenancy end while they’re abroad. For this reason, most international landlords choose to use a letting agency, which can deal with every aspect of managing their property while you live in Dubai. If you’re a new buyer, check our tips below.
Understand the Legal Obligations
If you rent a property out in the UK, you’ll need to pay on the rental income. And in fact, being an international landlord does not exempt you from this. Also, if you’re an expat and have lived in Dubai for more than six months, you’re automatically classed as a non-resident landlord. Note that if you’re only outside the UK temporarily, you’re not classed as a Non-residential Landlord.
Consider Online Screening
Since you’re not living in the United Kingdom, online screening of tenants is the best option. And one of the biggest challenges landlords face in Dubai is that they cannot meet tenants face to face before approving their rental application. For this reason, you may choose to use Skype or other video messaging platforms to meet your tenants in the long run.
Look for Long term Tenants in the UK
The administrative demands of several shorter tenancies are far more significant in comparison to fewer, longer tenancies. However, landlords with long-term tenants are also more likely to build a stronger relationship with their tenants, taking away any concerns about how the property is being treated.
On the flip side, longer tenancies are also a benefit from the tenant’s perspective. Also, if you’re offering the tenants more security and a guaranteed place to rent, it could be a way to earn potential profits in the long run.
Keep an eye on the Property
When residing in Dubai, it’s always difficult to monitor your property in the United Kingdom. This way, you can choose to ask a family member, friend, or neighbor to keep an eye on the property while they are abroad. Moreover, using a property management company relieves family and friends of labor, as the agent will be responsible for dealing with tenants and carrying out the property inspection in due time.
Use Property Management Company
The best way to simplify the potential headaches of managing a property from abroad is to let someone do it for you. Many expats or locals who have tried to manage their property from Dubai find the time spent is not worth it. This way, we advise you to hire a real estate agent or a property management company to ensure your property maintenance.
Key Reasons to Invest in UK Property Today
As of today’s 21st century, the benefits of investing in UK property cannot be overemphasized. With well-chosen assets, and the Brexit occurrence, Dubai investors can enjoy predictable cash flow, tax advantages, diversification, and it’s even possible to leverage real estate to build wealth.
Are you thinking about investing in real estate from Dubai? Look no further as we’ve compiled some of the key takeaways in this guide. Without much talk, here’s what you need to know about real estate benefits and why it is considered a good investment.
Tax Deduction and Breaks
Real estate is becoming increasingly popular in today’s digital world. And one reason why people tend to invest in real estate is because of the tax deduction and brand. Also, real estate investors can take advantage of numerous tax breaks, especially in the United Kingdom. In general, expats can deduct the reasonable costs of owning, managing, and maintaining a property.
Build Wealth and Equity
As you pay down a property mortgage, you build equity, and it’s because property buying is an asset that’s part of your net worth. Moreover, if you build equity, you have the leverage to buy more properties and increase cash flow wealth even more. So, one of the main reasons to invest is to earn in the long run.
Real Estate Leverage
Leverage is the use of various financial instruments to borrowed capital to increase potential return. And a 20% down payment on a mortgage, for example, gets you 100 percent of the house you want to buy. Besides, real estate is a tangible asset and one that can serve as collateral, while financing is readily available.
The inflation hedging capability of real estate stems from the positive relationship between GDP growth and the demand for real estate in recent years. This, in turn, translates into higher capital values. So, if you’re investing in real estate, always know that it tends to maintain a buying power of capital, bypassing some of the inflationary pressure.
Disadvantages of Buying a House in the UK
According to British culture, owning a house is the best thing you can do. We grow up with this idea implanted in our minds, and it’s something many young and plenty of older people are keen to do. More so, the idea of getting on the property ladder occupies a lot of our time, and this could probably be bad.
Yet just because this is the idea, does that mean buying property in the UK doesn’t have disadvantages? Of course, NO! There are few disadvantages attached to buying properties in the UK from Dubai. So, if you’re on the verge of buying a property, whether it’s your first or you’re simply moving house, it’s crucial to know the disadvantage of buying a house in the UK,
Buying a house is expensive, and of course, that’s true. However, there are several costs attached to it. In the previous post, we talked about the kind of cost of maintaining your property. But today, costs that may not have factored into your budget and extra payments you need to make can be problematic.
If you acquire your property through a mortgage, the companies may not want you to sell the property if you owe more than the house is worth, as they won’t get their money back. Moreover, if an expat rents your house, he/she can move comfortably than being tied to one property for life.
Overvalued House and Interest Rate
Some industry experts consider house prices to be fundamentally overvalued and could later fall by up to 30 percent in the long run. However, it’s worth noting that many people thought they were overvalued. On the flip side, interest rates can vary, thereby affecting your return and property investment. To some extent, you can protect against fluctuating interest rates by using a fixed-rate mortgage.
Difficult to Move
Of course, we all know that it’s never possible to move your apartment from the United Kingdom to Dubai. With this in mind, it would be better to use a trusted real estate agent that would help you through. And if you frequently need to move area, due to work commitments, owning a house can be a drawback. This means, the more you move, the more tax and costs you’ll end up paying in the country.
Frequently Asked Questions about Dubai Buyers
Can I buy a house anonymously in the UK?
Of course, anyone can buy property in the United Kingdom. According to Mark Haywood, chief executive at The National Association of Estate Agents, the property is a particularly high-risk sector for money laundering in the UK, as anonymous ownership is completely legal under current laws.
Can I Hide a House owner In UK?
A land trust is a simple, inexpensive method for hiding the ownership of real property in the United Kingdom. Aside from that mentioned, a land trust can be set up as an irrevocable living trust used to title real estate ownership. This way, the title to the property is held in the name of a trustee, who is forbidden to reveal the beneficial owner.
Can Dubai expats buy property in London?
As we’ve mentioned above, foreigners and locals can buy property in the UK without disturbance from a third party. Meanwhile, since many overseas investors who are interested in London may wonder if foreigners are able to purchase the property in London, there are no restrictions for expats.
Is it worth buying a house from Dubai?
Yes, it is worth buying a UK property from Dubai. This is sole because; it serves as an investment opportunity, and according to Knight Frank, London prices are likely to grow by 15% by 2024. Therefore, why you might be able to save up £15,000 on the overall costs of purchasing a London flat or house, property experts suggest that it may not always be worth falling for it.
Is it better to rent or buy a flat in London?
In the short term, it is often cheaper to rent a house in the UK than to buy one. This is because; the rent you pay is likely to be lower than your mortgage, and the deposit on a rental property is significantly less than the initial costs of buying a home. This way, you can definitely purchase a house to rent in the UK.
Can expat buy property in Dubai?
In Dubai, foreign ownership is permitted in areas designated as freehold. With that in mind, you should understand that not everyone can purchase a house in the United Arab Emirates. Moreover, foreigners who don’t live in Dubai may acquire freehold ownership rights over property without restriction, leasehold rights, and many others, to mention a few.
Will UK house prices go down in 2022?
Regardless of whether the house price will increase or decrease in 2022, your decision is what matters. And that’s why we have compiled all the things needed in this article. Research made it known that the current housing boom will flatten in 2022 or possibly early 2023 when the mortgage interest rate rises. But the demand is not justified by fundamental economic factors. So, you can buy UK property!
Can the UK house market crash?
Although the UK is highly unlikely to see a house price fall but it doesn’t me that you should not invest. The rate at which house prices keep increasing is what really matters at this point. So, meet your real estate agent for more guidance.
Just like here in Dubai, buying a property in the UK does come with additional costs. As a leading property management company, we advise you to make proper research before jumping to buy a house. Nonetheless, read this article carefully to understand the terms and conditions to buy UK property from Dubai.