Investing in the UK for citizens within the UK is the most common practice as it’s a known location and provides a sense of comfort as we have a good basic knowledge of its geography and history. It also helps that we can attain further in-depth information from sources we know and trust. Viewing and managing the property if necessary is also easily achievable. Knowing the law and regulations makes the biggest difference from investing abroad but often foreign investments offered to UK citizens are via UK companies and have the same level of securities. There has always been demographic trends and market conditions to consider but now even average families are trying their luck in becoming a landlord as the buy-to-let market becomes common practice.
We currently have properties in alphabetically, Birmingham, Blackpool, Derby, Dudley, Keighley, Leeds, Liverpool, London, Manchester, Nottingham, Peterborough, Plymouth, Sheffield, Southend, Warwickshire and Woolacombe. With the exception of Blackpool which is a respite and training facility for young adults, London which is a limited-partnership holding, Warwickshire which is country hotel manor suites and Woolacombe which are hotel suites they are all New Build Properties with investment potential for both capital growth and rental yield. We are not Estate Agents who traditionally sell houses for the owner to live in, we sell properties for gaining an income by the owners having assurances of letting as well as capital growth.
Birmingham which is Britain’s second largest city is currently undergoing a £500 million regeneration project phase over a 20-year period aligned with the arrival of *HS2 in 2026. Its tipped by Knight Frank to be a 2017 property hotspot with both Capital Growth and Rental on the increase already. August 2017, saw it become No. 1 for the first time and its aims are to stay there now.
High Speed 2 is a planned high-speed railway in the United Kingdom linking London, Birmingham, the East Midlands, Leeds and Manchester.
Blackpool is also currently undergoing a £31 million town centre regeneration process described by a government minister that its faded glory will return to Europe’s most exciting resort again by the regeneration initiative. Property prices and rental returns are attractive.
Derby has attracted £4bn of investment over the past ten years and has one of the fastest growing economies in the UK, having achieved 23% growth in *GVA over the past five years.
Gross value added (GVA) is the measure of the value of goods and services produced in an area, industry or sector of an economy, in economics. In national accounts GVA is output minus intermediate consumption; it is a balancing item of the national accounts’ production account.
Dudley has created a business investment zone including a million square feet of office space in Brierley Hill and has transformed its landmark buildings into high-quality office space. This has encouraged large commercial companies to relocate to its West Midlands matrix of major road connections for ease of transportation. The necessity for rental properties are on the increase and the supply in this area cannot yet meet its demand.
Keighley has a thriving business community and after generating its own massive investment in the town through the LEP Business Growth Programme it gave its initial donation to twenty-five businesses the sum of £1.25million. A further £17.7 million has been spent to help secure their future success. The councils kick start advisers have helped create modern-day entrepreneurs in newfound businesses in the region. Its proximity to Leeds and Bradford make this an ideal rural retreat.
Leeds From transport to new builds, the ambitious plan to double the size of the city centre is a long-term strategic vision to create 35,000 new jobs and over 4,000 new homes. It will also provide historic buildings being restored to their former glory, a change that will be the biggest the city has seen for over 100 years.
Liverpool has just been transformed by a far-reaching regeneration program to become the UK’s leading business destination. It has created an ideal opportunity for international investors to provide investment into projects such as a new creative district which is a stunning venue and part of a multimillion pound program to attract creative business to the Ten Streets district.
London rarely fails to disappoint. Not much needs to be said as London continues to prosper although it has its own microclimate and rules not comparable to other countries within the UK. Purchase prices are increasing and are not affordable for everyone. Returns are also low in comparison to other parts of the UK. It has however always been popular with foreign investment.Some UK investors are being forced to look elsewhere now but with a high-ticket item, growth and yield, however, small generate a nice profit.
Manchester often referred to as the “Manchester Miracle” since its regeneration because of its groundbreaking urban regeneration programmes including the continual airport expansion and funding of other urban regeneration projects. The phenomenal success of the Commonwealth Games launched it into the public eye and has helped transform Manchester into a regional powerhouse of sustainable economic growth.
Nottingham is a sought-after location by investors because of its accessibility and proximity to other cities. It has renowned world-leading universities with 60,000 students.With a £12.1 billion per annum economy it has become the economic capital of the East Midlands. There are also 1.1 million people in its recruitment area.
Peterborough is located just 45 minutes from London Kings Cross by train and offers an alternative, affordable, modern countryside setting, in a city living environment. It’s the UK’s first Gigabit City, the second fastest growing city by population and is radically changing with a £1billion regeneration programme already underway.
Plymouth is a spectacular waterfront city and is a near perfect place to invest. Britain’s Ocean City. It has a historic connection in marine science and engineering with a reputation as a centre of excellence. Simply put it’s all about Quality of life here nestling between the sea, rivers and the dramatic expanse of Dartmoor, it offers the perfect work-life balance with the best balance of schools, housing, culture and scenery.It is also one of the top ten locations for Superfast broadband and attracts business opportunities galore.
Sheffield home to the UK’s number 1 Enterprise Zone for Modern Manufacturing and Technology. Previously known for its steel with many museums depicting its long historical value. There has never been a better time to invest in Sheffield as major investors are moving in, real estate investment is at an all-time high and there are cranes above the sky-line of Sheffield once again. Particularly popular with Chinese investors notably with a recent billion-pound deal, the largest of its kind outside of London to regenerate the city.
Southend is a key economic driver in South Essex with substantial levels of investment including a significant redevelopment of the seafront and the town centre. A major expansion programme is underway for the airport. The town’s current demand for centrally located rental properties has further increased by the State of The Art University (The University of Essex) on its doorstep.
Warwickshire and Woolacombe are quite unique and hotel suites are always lucrative and regular considerations for foreign investment. They normally offer personal stays within the packages and investment in this market sector is on the rise.
Knowing what our investors want is key to our success now and in the future. We are generally dictated by our clientele, following known and emerging trends acquired via historical data and customer feedback. UK investors have traditionally holidayed in known and accessible locations and this rolled out to include their preferred choice of investment locations, still witnessed today. Some countries although seen to become popular to us pose too much of a risk. An example of this is the demand for Brazil during the FIFA World Cup 2014 on what has always been a politically corrupt state. The collapse eventually followed and investors got their fingers burnt. It is good practice, therefore, to invest in tried and tested investments and that advice follows for countries too. Investing too soon is a huge gamble and the penalty could be fatal. Spreading your portfolio if possible tempts UK investors into foreign parts with attractive returns and sunnier climates often having personal usage in the package. The overseas market will always have its place with UK investors.
We currently have properties in alphabetically, Cyprus, Dubai, France, Germany, Greece, Indonesia, Spain, Switzerland, Thailand and the USA.
Included in this category is France, Germany, Greece, Spain, Switzerland (although Switzerland it is not part of the European Union) and the United Kingdom.
France Our nearest neighbour and the Worlds second most popular tourist destination surpassed only by the USA. High-speed travel has three options, plane, train and hovercraft since the Channel Tunnel opened its doors for business in May 1994. Cars can also pass through the tunnel via Eurotunnel trains or adopt the slower option via ferry. Lately, France has risen to one of the best places for foreign investment due to its popular tax and strength of regulations. The main reason for the growth in this marketplace is a result of lower acquisition charges compared with other countries. Related purchase fees including solicitor’s charges rarely exceed 7% compared to Great Britain at 12% of the purchase price. France has an abundance of properties requiring renovation which the French don’t seem keen on doing especially in the more rural areas. It is also more common for its citizens to long-term rent rather than purchase than in Great Britain. Over 40% currently rent their own home long-term.
Germany often referred to as the backbone of Europe as it is Europe’s economic engine. Investors will profit from the world’s fourth-largest economy economic performance, offering a substantial domestic market and ease of access to growing markets in the European Union. After spending six years at the top it now stands in third place tied with China and the USA in exportation. Renowned for its high rates of productivity and quality it is Europe’s most cost-effective production locations. Highly developed economic and political frameworks provide the necessary security for your business investment. Furthermore, it offers an excellent standard of living. More than 7 million foreigners have made their home in Germany.
Greece: Property prices are at an all-time low and a savvy investor with the ability to snap up a bargain and wait will inevitably see its growth return. The Greek economy was one of the fastest growing countries within the Eurozone from 2000 to 2007 and that on its own has a part to play in the debt crisis. Greek start-ups are way undervalued compared to American and European ones. An early stage investor investing in a start-up will get a much larger stake in the company for the same money they would pay for a tiny percentage of a US-based start-up. The final buyers of successful Greek start-ups are very often companies from outside of Greece, willing to pay “international” prices. Caution is paramount but it is very often the case that someone’s downfall is another’s gain.
Spain has seen its property prices soar by 16.42% mainly due to foreign investment. Holiday rental homes are one of the most profitable current investment options available in Spain. Larger capital cities and areas within proximity to the coast offer the best opportunities for holiday home investment but cheaper options are available a short drive away as a compromise.Also, worth noting is its sudden surge in providing accommodation for retirees and purpose-built care homes for its ageing population. Spain is the World’s third most popular tourist destination making it an obvious investment choice. Barcelona, Marbella and Ibiza are predicted to continue to lead the rise but in most other cases the rise will be modest in comparison. It also boasts of a large British ex-pat community in certain regions also popular with holidaymakers.
Switzerland having a neutral status has helped its very low inflation rate and economic stability. The Swiss franc is one of the world’s strongest currencies. There are major laws regulating foreign investment, the Swiss Code of Obligations, the Lex Friedrich/Koller, the Securities Law and the Cartel Law. Switzerland’s geographical location represents one of the country’s strong points as it offers openness to the European, African and Middle-Eastern markets.
Included in this category are Cyprus and Dubai,
Cyprus only as recent as1960 gained independence from Britain so our association is historical. Enjoying an average of 340 days of sunshine a year located on the Eastern Mediterranean at the crossroads of Europe. Its position is attractive to many countries including the US. The English language is widely spoken and getting there has been popular since the early 1980’s with several airports having regular flights, especially during the summer months. The hotels, culture and shopping, as well as sporting and outdoor activities, make this a holiday makers paradise not forgetting the cuisine. UK citizens enjoy the fact that they drive on the left, use 240 volts, 3 pin plugs, have a good healthcare and education system. Pets are welcome, the tax rate is lower, crime is much lower as it is the 5th safest country in the world, offering a good standard of living and has a large British expat community.
Dubai hosts the next World Expo in October 2020 which will attract substantial investment especially as in the real estate market it is tax-free.Once the property is purchased, owners will not be obliged to pay additional taxes in the future. The city’s population is increasing each year as well as the boost in rent demand. As a direct result of its growing tourism industry hotel and real estate construction continues, to satisfy its growing demand. A major advantage to buying property is its very-low crime rate and its superior transportation routes.
Indonesia had just recently gained *Rp. 165.9 trillion (US412.5 billion) in its first quarter. 24.4% of its 2017 target of Rp. 678.8 trillion. The Coordinating Board (BKPM) announced that investment from foreign investors has increased 13.2% compared to the same quarter last year.The middle class in Indonesia is growing fast making it a valuable target group for investors. Indonesia is already the 4th largest populated in the world and it’s growing rapidly. Based on statistics Indonesian’s population increases every year by roughly 3 million people. By 2020 Indonesia is expected to have a population of 272 million. 50% of Indonesians are under the age of 2 making this an excellent demographic dividend in the future.
*Rp. A risk premium is the return more than the risk-free rate of return on investment is expected to yield; an asset’s risk premium is a form of compensation for investors who tolerate the extra risk, compared to that of a risk-free asset, in each investment.
Thailand has only recently via the government through its Board of Investment (BOI) welcomed foreign investment in the Thai economy. Its biggest investor to-date is Japan with various tax incentive schemes now being offered. Rental potential is on the increase due to government spending luring growing numbers of tourists. With incentives, such as no capital gains tax for private investors, and low ongoing taxes, foreigners are regarded as a big investment opportunity in Thailand.The laws are changing to accommodate the rapid world response to this area and make investing much more flexible.
The United States of America offers a transparent and predictable legal system, access to the world’s most lucrative consumer market, outstanding infrastructure and low taxes, making it the ideal place to conduct business. ‘Invest in America’ is a primary U.S. Government vehicle to manage direct foreign investment promotion and is admired the world over. The US has the most developed efficient, flexible and liquid financial markets in the world. This offers a diverse range of funding sources to venture capitalists and angel investors which gives companies within the US a distinct advantage to enable expansion and innovation. The US has been the world’s largest recipient of direct foreign investment since 2006.
Population figures for 2017 show as: Rank by Population. 1, California, 39,849,872. 2, Texas, 28,449,186. 3, Florida, 21,002,678. 4, New York, 19,889,657. 5, Pennsylvania, 12,819,975.
What are some important & key points to know before investing abroad/ investing in property in general?
It is worth pointing out that regulations with regards to investing abroad differ considerably from country to country and the necessity to exchange currency could affect your purchase. If the foreign investment opportunity is being offered by a UK registered company, then you will still be protected by any applicable English Laws. You should, however, check that this is the case prior to any investment.
Investing in property, in general, has a complete section on this subject but investing in bricks and mortar has always been considered a safe option especially as it is common for individuals to purchase a home to live in. That is most people’s biggest investment and normally by way of a mortgage which has its own risks attached.
Why would someone invest in property?
See above. Having a stake in a property is an asset that at any point in the future can be sold. Historical data will confirm property growth in any country as a guide for consideration prior to purchasing. A property has more information on investing than any other investment options available and is the most common investment worldwide.
How can Wise Investments help with someone’s property investments?
We can tailor make your investment/s on your behalf. We can arrange finance, currency exchange, provide due diligence and research the opportunity prior to investment. We can help with the application process and be a point of contact for reassurance. We can also provide you with opportunities ordinarily you would struggle to find yourself.
What are the risks of property investing and how can Wise Investment help reduce those risks?
There are many risks involved in property purchase. Location, purchase price, condition, repayment ability, restrictions attached whether its leasehold or freehold as an example. Wise Investment Properties only offer investments by known developers/investment companies. The full investment details are explained comprehensively and normally come with assurances of investment growth potential and known yield returns and any applicable terms. The risks have been minimised to attract investors to see it as a viable opportunity and encourage investors to return prior to the offering.
What are the different types of property investment?
Not limited to but including Commercial, Residential, Lease or Freehold. Student Accommodation, Below Market Value (BMV’s), Repossessions, House of Multiple Occupancy (HMO’s) Buy-to Let Rental Properties, New Builds, Off-Plan and Renovations to name the most common. Variations also include Care Homes and Hotels. It is also possible to buy part ownership or fractional ownership.