Investment Real Estate – the Whole Story for the UK

Jun 17

Investment Real Estate – the Whole Story for the UK

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Many people in the UK buy real estate. Investment real estate is a solid holding that helps secure a portfolio against declining economic markets. Read on to learn more about residential real estate investing in the U.K.

Investment Real Estate UK : Tips for Buying Investment Property

Most every real estate transaction has a number of steps to ensure both sides are satisfied and legally protected. When buying real estate a deposit of about 10% is generally made while the steps are completed. It’s the seller’s legal representative who holds this money. Both parties are legally bound once the contracts are signed and exchanged. Most real estate transactions are for permanent ownership but some are for leases of from 99 to 999 years. It’s important to note that in Scotland neither the buyer nor the seller can back out of the contract once the offer for a realty investment is accepted.

Investment Real Estate : The Home Condition Report

Anyone purchasing a residential investment property is wise to have a certified inspector prepare a Home Condition Report. A diligent inspector will take as much as four hours to go through every portion of the property. It’s up to the seller to provide this and detail it in the HIP (Home Information Packet) – the buyer must make sure it happens.

Real Estate UK : The Property Changes Hands

There are other concerns with real estate investment that a lawyer can manage. Fees run about 4% of the price, covering land registry and legal fees. If the value is over £60,000 then you’ll pay a 1%-2% stamp fee. There are also costs associated with the mortgage, so don’t overlook them.

Don’t Forget Taxes and Interest

Every property owner pays the property tax. A is the bottom of the rating scale for this, while H is the highest. The rating is calculated based on like properties in the area. At the low end tax is about £400.00. Mortgages are common when people purchase investment real estate. After a down payment of 10% the buyer pays monthly for 25 years. There are always deals to be found, especially for first time buyers.

Quick Return on Investment

Many people in the UK like to buy investment real estate to create real, rather than paper, wealth. Real estate investments usually grow faster than more conservative options like savings accounts. The higher return from property investing exists because it isn’t certain – there’s a risk.

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