Dubai investors have long had an interest in the UK property market, and in the past few years, this number has continued to rise. Now more than ever, overseas and Dubai-based investors are choosing UK property for a number of reasons. One of the biggest and most significant reasons is that the prices in the UK are affordable, yet the returns (in both capital growth and monetary value) are highly lucrative. People see the chance they have with how in demand the UK market is, and they take this chance with open arms.
Properties in Dubai and the UAE in general are expensive when you compare them to the likes of Liverpool and Manchester developments that boast high rental yields and capital appreciation. Due to ongoing regeneration work throughout the UK's biggest cities, properties are now worth more and tenant demand is higher than before. However, what do you need to know as a Dubai/UAE investor looking at UK property? We're covering the basics of it all below…
Why Invest in UK Property?
UK property has long been accounted for as a secure and stable place to invest your money, the opportunity for investment within the UK market is huge. Not only does this mean great news for investors wanting to make high returns, but it also means you won't be struggling to find your ideal property or development when you're looking.
Property within the UK can be profitable and pose as a steady second income for anyone who knows what they're doing. We suggest using online platforms such as the RWinvest website to find out information when you need it. Podcasts, guides and blogs are all at the top of the list when it comes to gathering new knowledge about the property market, which is essential before investing. You will ultimately learn a lot from your investment journey as a foreign investor, and the more you get to know the market, the more likely you are to succeed and grow your property portfolio.
Keep in Mind: Stamp Duty
As an overseas investor, you must remember the fees you're required to pay for Stamp Duty. Stamp Duty applies to any second/third/fourth etc. property you buy within the UK, even if you've never dipped into the UK market before and only have properties outside of the country. As of late 2019, overseas investors must pay a percentage more than those investing who are living within the UK. While the rate isn't much (between 2% to 6%), it's still fees that you're going to have to pay on top of your initial investment.
The Next Decade
The future looks bright for the UK market. The property industry is blooming with opportunity, which is why now is the ideal time to take the plunge and invest for yourself. Even if you don't necessarily think you have enough funds, there are finance options available and payment plans too, which makes it easier than ever to invest in UK property and make your dreams come true. Cities such as Liverpool have the ideal landscape to invest right now since the prices are affordable but rising and also there is a high tenant demand from young professionals, students and families too.