Inflation is on the rise. Stock markets are crashing. Currencies are getting weaker. Countries are going against each other militarily and economically. It is indeed a precarious period globally.
How do you navigate these uncertain times? What do you do as a high-net-worth individual? Do you keep your cash? Invest it? What do you invest in?
There are many questions that this unusual period has thrown up for investors. You should stop overthinking. One smart move, amidst all this chaos, is to invest in property in the UK.
If it sounds simple, then it is indeed simple. The UK promises friendly legal requirements, political and economic stability, high flipping margin, and many more as reasons to entice you into investing in real estate in the country. Still unconvinced? We explain these reasons in more detail below;
Free and Stable Economy
The UK sits pretty comfortably among the top 5 most viable investment destinations. This is down to clear and straightforward economic and social policies that protect and promote the interests of investors in the UK economy.
The resultant effect is a fair and transparent economy; one that provides a great opportunity for investors—irrespective of nationality—to invest in the economy. Why not also capitalize on it?
While no investment can be said to be absolutely safe, it is still safe to assert that real estate is safer than most. Its 10% average yearly returns in the last 25 years, according to the National Council of Real Estate Investment Fiduciaries (NCREIF), has put it among the most performing investment assets in that period. Hence, it is almost impossible to not make a substantial profit from real estate investment.
Property will always be in demand—either for purchase or rent—owing to the influx of people who relocate to the UK every year. Hence, regardless of whether you’re looking for a property to flip or put out for rent, you can rest assured that you will not be short of demand.
Hedge Against Inflation
You could leverage the crashing market and weakening pound sterling to your advantage. Whatever returns you stand to make on your bank savings will be insignificant once you weigh the inflation rate against bank interest rates. However, a whopping 5% annual return on your real estate investment would go a long way to counter the effects of inflation.
Better still, if your local currency has appreciated against the pound during this period, you could simply convert it to pounds and tie it down on a UK property now that the pound is weak. The British pound will not always be weak. When it strengthens against your currency, you can resell the property and get a tidy exchange differential on the money you initially put down for the property. Savvy?
Investing in the UK economy could play to your advantage when you want to secure a visa into the country. Such investment could be in any form or sector, including real estate.
Owning a property indicates financial stability as well as the genuineness of your visa application intention and qualifies you for certain perks like preferential visa application processing.
Has your skilled worker visa application been continually rejected over the years? Ownership of a simple property in Wales, the Midlands, or elsewhere on the Islands of Great Britain and Ireland could change the situation.
Access to Loan Facilities
Other than boosting your chances of securing a UK visa, owning property in the Land of the Rose can also be the leverage you need to secure a loan or mortgage from any bank or lender in the world.
Real estate is a crucial financial asset class anywhere in the world for the reasons we have listed above. Lending organizations are aware of this. Therefore, strategically investing in real estate in a country like the UK will always open doors to financial backing at favorable rates for you.
If you want to immigrate to the UK for non-economic reasons, acquiring a home should be one of the first things on your mind. The UK is a nice place to live. It’s already home to several foreign nationals owing to its progressive culture, friendly people, proactive government, and advanced social services.
The country is large and heterogeneous, with each of the numerous metropolitan cities having differing attributes. The countryside also throws up a mix of unique characteristics. All these give the country the diversity for which it is famous.
You will surely find an atmosphere that suits and meets your preferences and requirements.