Why invest in UK properties?
Every year, many people take their first steps into the world of property investment, and for very many different reasons too. It could be because of financial security, freedom, or the desire to try out something new. Regardless of the reason, there’s no doubt that no one delves into this business to fail. The selection of the ideal country or city to do business is very important. The UK, and London, specifically, is one of the best places for property investment. Below are some of the reasons why this is so.
When you consider other parts of the world, it suffices to say that the UK is a relatively small yet prosperous country. Development land in this country is definitely in short supply, and is ever diminishing. The strict and protracted planning process in the country does not make matters any better. The “green belt” policy around major cities in the UK also restricts the number of homes that can be built every year, making it a paradise for investors who’ve actually invested already.
Despite its size, Britain has one of the most globalized economies. Its GDP is enviable, and the high number of migrants from all over the world in London makes the property market even more lucrative.
Britain has a growing population. Over the last quarter century, the country’s population has grown by almost a million more people. This trend is also sent to continue, and there’s no doubt that the more the elite population grows in the country, the better the prospects for the real estate investors.
Over the last 25 years, only about half a million new homes have been built. The obvious result in this case is a shortage of housing in a fast-growing population. Basic economics suggest that the imbalance between supply and demand over housing will result in sharp increases in the prices. This trend is also set to increase over time.
The above points don’t tell the whole story. What makes investing in property in the UK even better is the opportunity to leverage. Property is a strong asset class that even financial lending institutions are willing to finance up to 80% of the property value. This means that getting into the business for new investors is easy. Compounded to the fact that the pound, Britain’s currency, is stronger as compared to the dollar, there’s no doubting the fact that investing in properties in London is a good idea.