Factors Behind the High Demand for UK Property Investment

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UK-Property-investmentDemand speaks a lot of a UK property investment. In economics, it refers to the level of desire or need that exists for particular goods or services. Simply put, it can define an asset’s value in the market.

In the United Kingdom, the demand for such investments has continuously been at a high level due to a number of factors. In school we have been taught that low supply and high demand will yield higher prices. We all know that despite buildings being continuously constructed, land area remains the same thus suggesting limitations in supply.

It is for the above reason that many investors have sought to take their piece of the pie knowing that this spells a good return and positive profits. But what are these factors? What are the reasons behind the high demand for UK property investment? Surely, we’re all curious. Read more to discover.

  • Population

As of 2016, statistics report that the UK has reached over 65 million in population. That alone tells us that more and more people have come to reside and live in the country. And we all know that a strong number of citizens and residents will call for a demand in the housing industry. Their varying needs will also call for the rise of businesses which in turn will create added demand for commercial and industrial assets.

  • Tourism

Considered to be a home to many of the world’s biggest attractions ranging from historical sites, museums, amusement parks, entertainment and many more, the UK is one of the largest tourism industries in the world with18.6 million foreign visitors and 12.9 million domestic visits.

  • Education

Adding to the demand are students not only from the country but from all over the globe. It is home to a number of renowned educational institutions such as the University of Oxford, University of Cambridge, University College London, Imperial College London, King’s College London, University of Edinburgh, University of Manchester and London School of Economics and Political Science which all form part of the world’s top 100 universities.

  • Business

Last but definitely not the least; UK property investment is high in demand because of business. It is a thriving potluck of domestic and international companies of varying industries and sizes. This creates demand not only for commercial assets but also for residential ones as it pulls the employment bar higher eventually increasing the number of immigrants and foreign workers.

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Turning a Property Investment into a Home

investment-propertA house and a home are two very different things. We could all agree on that. But how does one turn a property investment into a living space that we could all look forward to at the end of a busy day? Fret not. We’ve got tips to help you by.

  • Kick it up a notch with lighting. – More than do the obvious which is provide visibility, light can change up the feel and ambiance of any room. From cozy to productive to busy and even dramatic. Moreover, interior design has seen a complete 360 when it comes to design and innovation. Choose from industrial, modern, minimal, luxurious or DIY. You’ve got a lot of choices to play with.
  • Update the palette. – When you buy a property investment, it’s almost always in a neutral tone of boring and dull beige. At times, they come in white too but it’s not in the shade that makes the space pop with energy and potential. Add personality into your home by updating the walls with paint, stencils or wallpaper.
  • Create personal spaces. – We don’t just mean the bedroom. Put up areas that represent and are useful for the people who live in the house. For instance, create a reading nook with cushy pillows, a snug blanket and a comfy chair. Do you have kids? Dedicate a room or even a small area for them to play.
  • Take out those mementos. – A house is never really a home if you don’t personalize it. We all tend to accumulate things along the way. This could be books, photos, postcards, sketches, knickknacks or souvenirs from travels or memorable keepsakes.
  • Decorate with art. – You don’t necessarily have to buy expensive paintings or the like. Art comes in all forms and sizes from figurines to decorative clocks to pretty much anything that’s visually appealing. You can even splash some paint unto a cheap canvass, frame it and put it up your wall. Also, plants are art too so go ahead and add a splash of greenery inside and outside your home.
  • Keep things comfy. – Nothing screams home other than comfort. We all have varying preferences and definitions for it so this one really depends from one person to the other. But for good measure, invest in a few decorative pillows, pretty rugs, comfortable beds and sofas. Your property investment will instantly feel like home in an instant.

Pros to Leasing a Commercial Property Investment in UK

commercial-property-investment-ukDo you have a commercial property investment UK? Are you planning or at least considering leasing it out? If your answer to both questions is a resounding yes then you’ve come to the right place.

We’re giving you a rundown on the various perks and advantages to renting out your investment. Take a look and see for yourself.

  • It provides a steady income stream. – Monthly rental collections provide you with a good source of income. For many people, this gives them financial freedom. While others use leasing as a means to add more inflow to their pockets apart from their regular day jobs, others do it round the clock as their permanent source of living.
  • You retain ownership of the asset. – Renting out is different from selling despite of the fact that you’re not the one directly using or occupying the space. But what’s great about the former is that it allows you to retain ownership and the title to the asset all while earning income from it as mentioned previously.
  • You may choose to sell it later. – Since you retain ownership, you have all the liberty and discretion to sell the asset in the future should you wish to and should all contracts expire. You can do so for a profit too which is very attractive. Many investors go down this route when they find better investments to put their money and efforts on.
  • It helps with your taxes. – A good number of expenses that you incur for renting out the space can be considered as tax deductible thereby lowering the dues for you to pay. You’re going to ask a professional for this though because different areas and circumstances will reveal different allowable deductions.
  • It pays for your mortgage or loan. – The steady stream of rent income you earn can be used to pay off the mortgage or loan you took out to acquire the property. In essence, you’re not taking out resources from your pocket anymore which is a good thing.

Leasing out your commercial property investment in UK sure sounds like a good idea by now but you must also put into account the costs attributed to it and the work too. Make a cost-benefit analysis and weight things over. After all, it’s never going to be the same for everyone as varying sets of factors will lie ahead.


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Hidden Costs to a Commercial Investment Property

hidden-feesBuying a commercial investment property or any other fixed asset for the matter is tricky in every sense of the word. It’s doable for sure but it takes not just knowledge and hard work but also a lot of care and caution so as to ensure perks not losses.

One of the primary tasks that any investor faces when making such acquisitions involves financing. Truth be told, there are a lot of costs that come with commercial properties and you’d be surprised that a good number of them may not present themselves early.

What many buyers assume is that the expenses that they’ll have to face will only be that of the asset’s selling price including a security deposit and a down payment. In the real world, there’s more and here’s a list for your information and perusal.

  • Surveys and Valuations

Prior to closing on the asset, you’ll be hiring a professional to examine about condition, value, potential, age, depreciation and more. You’ll need them both to validate seller-given information as well as uncover other important details that will help in your decision making process.

  • Loan Applications and Establishment Fees

This cost pertains to the fee added by the bank when you apply for a loan or some other type of credit. In some cases, this can be waived or discounted but not all the time. It’s important to ask and include it in the budget.

  • Legal Fees and Document Costs

The preparation of various legal documents, the contract and title and ownership registrations for example, will also bear costs. This is an expense that must be dealt with because you can never skip the legalities or else you’ll end with a terrible headache later.

  • Property Taxes

The costs to owning a commercial property investment doesn’t end when you pay the seller. You’ll be dealing with more, taxes being one of them. These are levied by the government so their rate depends on where the asset is situated.

  • Ongoing Costs

Repairs and maintenance expenses also belong to the category of expenses that are spent post-acquisition. They are needed in the upkeep of the asset and form part of the regular expenditures when owning such an investment.

There are actually more to add to this list but these are the basics that you should know, at least for now. Good luck in shopping for your commercial property investment.

Why a Property Investment UK is a Sweet Deal

Looking for someplace to put your money in to make it grow? A property investment UK might just be the sweet deal you are looking for! But is it really worth every penny? Here’s a little rundown on the perks of getting an asset in the European country.

  • The population is pretty dense.

The United Kingdom, which comprises of England, Scotland, Wales and Northern Ireland, is an island nation in northwestern Europe with about 65 million in population. That doesn’t count foreign residents and tourists yet. With such a healthy and dense population, demand for properties be it business related or residential is pretty high up as well.

  • Its tourism industry is strong.

As mentioned previously, the UK is strong in terms of tourism. In 2015 for example, it reported 36 million visitors who spent about $22 billion in the year alone. The country even ranked 8th in the list of the world’s biggest and most popular tourist destinations. And we all know what a strong tourism industry means: more investors, more businesses and therefore more demand.

  • There are numerous educational institutions.

Apart from demand and population, this means that the country is home to a good number of prime talents. With institutions like the University of Oxford, Imperial College London and University of Cambridge to name a few, this country is sprawling with so much fresh potential not only from its residents but also from students and graduates who chose to study and stay in the country.

  • It is a leading financial center.

With London as one of the biggest financial centers in the world businesses that fall in the said industry sprawl within the city and even beyond. If you seek to lease out or resell property investments for a profit, you’ll realize a strong market for it.

  • Demand for assets increase value.

With all that said we can now clearly and safely deduce that a property investment UK is high on demand. That alone can tell us that its value, given proper maintenance and upgrades, will increase in value over time. This means that you get to earn from the acquisition as time goes by. Renting your investments out can give you a steady stream of income and so does buying and selling them. It may be tough business and it could require you to take on huge capital but it can sure bring you the financial freedom you seek. That is if you’re up for the challenge.


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