Benham & Reeves’ sales manager Meena was invited to participate on the Sam Sam Channel (理財急症室) to talk about four often asked questions regarding buying property in the UK and to offer some things to think about when buying properties abroad.
“Invest now, live later”
You must be aware of your budget whether it is for self-occupation following investment, pure investment, or self-occupation. In addition, several considerations need to be considered. Buyers must consider their needs, analyse the advantages and disadvantages, and select a location that fits their budget and way of life if they want to choose a school network that is within their price range.
Benefits and drawbacks of purchasing real estate in prime locations
When buying real estate, many people will select mature neighbourhoods, such as those adjacent to the city centre and with all necessary supporting infrastructure. West London is the most well-known part of London, which is the favourite area in the UK. In certain developing locations, real estate costs have also increased significantly. For instance, in the last ten years, Berkeley’s Royal Arsenal Riverside in Woolwich, a new development area, has more than doubled in size, and Greenwich in East London has risen by as much as 90%.
Likewise, the Royal Arsenal Riverside in Woolwich, a brand-new construction area, has grown by more than twice as much in the previous ten years. The Elizabeth Line’s approval and the entire plan of developers, which included a significant refurbishment of the arsenal at the time, contributed to an enormous rise in real estate prices in a newly developed neighbourhood. Canary Wharf is another gem of the redevelopment project, in addition to the Woolwich neighbourhood. The area, which was a dock thirty years ago, has changed into London’s second financial district, and the cost of real estate has doubled. Therefore, purchasing in a well-developed region is not required. The most crucial factor is knowing what you can purchase given your needs and financial situation.
Off-plans vs ready to move-in
Currently, pre-sale periods for UK real estate range from two to three years. The pre-sale period has already grown by 5-7% based on the historical 2-3% average annual growth rate of UK real estate. Additionally, purchasing Off-plan homes in the UK typically just requires a 10% payment. Only a £50,000 deposit is needed for a £500,000 London house, and the average annual growth in property values is estimated. Profits are in the £20,000 – £30,000 range.
First-hand property vs second-hand Property
Second-hand properties must be transferred with the previous owners and must be completed buildings. First-hand properties are traded directly with the developer and will include both unfinished properties and existing buildings. Because the developer will provide brand-new walls, flooring, bathrooms, and kitchens with a sense of design, first-hand buildings in the UK do not need to budget for further remodelling costs. Please get in touch with us if you have any questions or are interested in London property investment.
About the Author
Meena has over 7 years’ experience working in international property sales. Before joining Benham & Reeves, Meena worked for a diverse range of notable companies including JLL, Marriott International and GIH London performing various roles in international property sales and project marketing. Meena offers excellent service to buyers and sellers in order to earn their trust, referrals, and repeat business. Her native language is Cantonese, but she is fluent in English and Mandarin and enjoys keeping fit in her spare time.