Reasons to invest in UK property

[Ali.M2000]

Would someone be able to explain to me the current situation for first time buyers that want to invest in property?
Thanks

 

[John62]

Do you still believe that Brexit is happening and how does this influence your real estate decisions?

 

[realdeals]

Brexit will happen, or the EU will be re-oranganised, either way there will still be a steady flow of immigrants to the UK to fuel demand for housing. Short term, hold off for the best prices, medium to long term Brexit wont have a massive impact.

 

[John62]

If Brexit doesn't happen and the EU will be re-organised, don't you think that Britain could suffer because people might be afraid that there will be a Brexit 2.0?

 

[Jason D.]

Bad news for Theresa May is good news for the chances of a second Brexit vote.

With the British prime minster struggling to get her Brexit deal through parliament, more and more Europeans are hoping the U.K. will hold a second referendum and vote not to leave at all.

They should be careful what they wish for.

Since the 2016 Brexit vote, a number of European leaders have called the U.K.’s choice a “tragedy” and stressed that the British are always welcome back. The U.K. paid for a big part of the EU budget, and many saw it as a counterweight to Germany and France.

The U.K. should be welcomed back — but later, not now.

 

[diyhelp]

I think the UK Brexit movement is starting to seep into other areas of the EU - the EU Parliament will need to listen at some point. The nationalists are coming!

 

[John62]

Bad news for Theresa May is good news for the chances of a second Brexit vote.

With the British prime minster struggling to get her Brexit deal through parliament, more and more Europeans are hoping the U.K. will hold a second referendum and vote not to leave at all.

They should be careful what they wish for.

Since the 2016 Brexit vote, a number of European leaders have called the U.K.’s choice a “tragedy” and stressed that the British are always welcome back. The U.K. paid for a big part of the EU budget, and many saw it as a counterweight to Germany and France.

The U.K. should be welcomed back — but later, not now.

What is an appropriate time for you? Hopefully not when it's too late

 

[Longterminvestor]

Hi @John62

What kind of timescale would you have in mind? Or are you a remainer?

 

[John62]

I think a second Brexit vote would be good asap. This would bring clarity in Britain's future and those of the EU.

 

[diyhelp]

This is where I am not quite sure whether or not democracy is being respected. Let's say there was a second referendum and the vote was 52/48 in favour of remaining in the European Union. Would we then have another one further down the line because "this one was too close to call". Surely, the first referendum attracted the biggest audience to a UK political vote and whether it was by 1% to 10%, the result is surely the result?

 

[Longterminvestor]

@Jason D.

You make some perfect points there - people seem to get wrapped up in press headlines and forget the facts.

 

[Jason D.]

@Jason D.

You make some perfect points there - people seem to get wrapped up in press headlines and forget the facts.

Yeah, I mainly believe in facts...

 

[Longterminvestor]

For me the rental yield is the key - if it beats mortgage rates (after costs) then eventually you will end up with a paid-up property for no extra outlay.

 

[Steven Doherty]

Property investment has amazing financial returns.

Another investment to consider, especially in UK, is SEIS and EIS.
It's a lower risk investment in terms of returns on losses.

In a nutshell,
Say you invest £10,000 into an SEIS company.
You get back 50% in the form of tax relief from the government within 90 days, regardless of the your share price.
So a £10,000 share in an SEIS company would have only cost you £5,000.
There's also no capital gains or inheritance tax.
If the company completely fails, you receive a loss relief which depends on your tax bracket.

So, lets say your a 40% taxpayer.
If the company fails, you get back:
£0 = share price
£5,000 = tax relief
£2,000 = loss relief
£3,000 = maximum possible loss. 30% loss

If the company doubles in value, you get back:
£20,000 = share price
£5,000 = tax relief
£15,000= total tax-free gain. 150% return!

 

[lookinginvest]

Is there a minimum period for which you have to hold the investment?

 

[BeardDemon]

UK Property and London housing in particular has been booming since the pandemic! It is a perfect property hotspot right now.

 

[jhonalbert]

What is the rental market approximation in UK ?

 

[Edwards&PlumbProperty]

In terms of new purchases for BTL's there will be more products coming onto the market which cater for Ltd company purchases, you can see this happening already. The benefits of offsetting the interest relief and taking dividend payments to claim income will work out a much more profitable investment vehicle for most new purchases.
Professional investors will not be put off, but will adjust their business plan for the changing market.

The big issue being very limited access to finance and also not great interest rates. Added to some on going running costs for filling etc.

Really depending on the value of the properties. I work with clients based in Asia who buy, it is very difficult for them to become cash flow positive using through LTD company structure.