Investing in real estate in the United Kingdom

Investing in real estate in the United Kingdom

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?

Investing in property in England

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:

  • Houses are getting increasingly expensive, so it takes longer before young people can afford to buy a home.
  • More and more people love the freedom of renting instead of buying.
  • Many people like to live in better developed/more expensive areas, where they can often only live by renting.

Why is investing in property in England attractive?

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.

Will Brexit affect property in England?

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.

Invest in UK property from your phone

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.Investing in property UK

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?

Read more

                 

Investing in property in England is seen as an interesting investment opportunity because the property is often cheaper, leaving room for renovation to realize added value. In addition, the English market is known as a market where many people rent instead of buy. Finding tenants is therefore easier, which is beneficial for real estate investors.
This mainly depends on the period. The German and English real estate markets are currently preferred to the Dutch real estate market.
Yes. Always take into account a foreign notary and local brokers. A foreign civil-law notary generally has fewer responsibilities. As a buyer, you run additional risks if you do not select the persons.
The return that can be achieved on real estate investments in England varies widely. This is because many factors determine the price. However, provided everything goes well, considerable margins can be achieved on purchasing relatively cheaper properties to renovate and sell/let them subsequently.
English real estate is expected to fall in value in 2023 compared to 2022. However, the number of tenants will continue to rise compared to buyers. This is because many English people like to live in more expensive areas, where they would not be able to live if they had to buy.