Published on Jul 20, 2022 8:29:34 AM • Last updated on Jan 26, 2023 8:53:10 AM
Written by Max Crowdfund
Investing in real estate is still one of the most used ways to grow your portfolio consistently. However, the Dutch real estate market, for example, has not been attractive to investors for some time. How can you invest in property in the United Kingdom?
Why should you look at investment opportunities in England as a property investor? There are several reasons for this, but in this blog, we will discuss the main ones.
England has a less saturated real estate market. This means that properties can be purchased at or below their market value. For example, many properties can be purchased for as little as €100,000. These are buildings that still need a lot of development. By investing money in renovating these types of properties, the value quickly shoots up, which then results in asking for a higher monthly rent or sales price for you as an investor.
In addition, England is known as a country where its inhabitants increasingly rent rather than buy houses. This has several reasons:
Many tenants
Why are people increasingly investing in English property? The previous paragraph gives it away a bit, but the first reason is that many people in England rent. This makes it attractive for real estate investors to purchase real estate because finding tenants often do not require much effort.
Better market
In addition to the fact that finding tenants is easier than in other countries, finding properties below the asking price is also easier. The market in the Netherlands is very saturated at the moment. This means that the demand for homes is high, making it increasingly difficult to find properties where a profit can be made. In England, it is easier to get profit margins from purchasing and renovating real estate.
Easier boarding
The final reason why investing in property in England is so attractive is that you need less capital to get in. Many properties are already available from €100,000. These buildings need a lot of work, but this refurbishment creates added value.
Leaving the EU has had consequences for the property market in England and the rest of the world. We know that various developments have started due to the fall in the British pound, such as the fall in house prices in England and a higher supply of German real estate because Britons sold their German real estate en masse. Brexit has had little or no impact on the heated Dutch real estate market.
What we have seen is that Brexit has had a negative impact on the UK property market. This is mainly due to the fall in the British pound. However, the low position of the pound has led many foreign investors to take an interest in UK property, leading to gradual increases in the years following Brexit.
Are you interested in investing in English real estate projects but don't have the time to conduct the risk analysis and realize the processes surrounding the purchase, renovation and sale? Then invest hands-off in English projects.
Crowdfunding makes it possible to lend money to carefully selected project developers, who then use it to purchase and renovate real estate. You can invest from €100 simply from your phone.
Max Crowdfund regularly posts loans online from property developers seeking financing for the purchase and renovation of their real estate projects. Before a loan comes online to the public, Max Crowdfund always first establishes the collateral. In most cases, a first right to mortgage is established. If a project developer can no longer meet its payment obligations, Max Crowdfund gets priority over the bank and can take over the property. This ensures that Max Crowdfund can often still repay its investors with the proceeds of the property. However, to prevent this situation, every project developer goes through the investment committee of Max Crowdfund with every project.
Would you like to know more about how investing in real estate via crowdfunding works?