Since the housing market is one of the most popular investments, it’s understandable that many people are interested in buying property in the UK. Unfortunately, there are a lot of stories out there about what type of property to buy and how much you can spend on your new home.
It is not uncommon to hear people say that the UK housing market is too expensive. This has led many to believe that they are unable to buy property in the UK. However, this is a myth as there are still affordable properties available for purchase.
If you want to be part of the booming real estate industry, here are some common misconceptions about buying property in the UK debunked for you.
- Brexit shall cause a crisis in the property market.
This is totally false. The UK housing market has been on a roller coaster ride for the last few years, with house prices skyrocketing in certain regions while others see decreases. What actually took effect across Great Britain is that London became so inflated compared to its surrounding areas due to an increase of wages being less than what people could afford or were offered when renting apartments there – thus pushing them outwards towards cheaper places like Slough and Bracknell which are located just outside this capital city backwater known as “the Home Counties”.
As always happens whenever there’s unrest within society; buyers switch their attention from one type (who can’t get anything decent) over another because everyone wants stability during difficult times.
- Foreigners cannot get a mortgage in UK properties.
False. You can still get a mortgage even if you’re not a UK citizen. However, it is still best to purchase property in cash.
It’s important to get the financing you need for your home purchase. With many UK lenders refusing overseas clients, there are specialist companies who can help guide buyers through this process and offer them loans tailored specifically towards their needs as an international buyer from abroad.
- Tax and Stamp Duty can be complicated.
Financial advice often suggests that tax is a necessary evil, but not when it comes to real estate. The UK’s stamp duty and net rental income taxes on buy-to-let properties can be avoided by hiring an advisor who has experience with these types of transactions in their portfolio.
Mortgage interest rates have decreased significantly over the past few years which will help homeowners save money each month – as well they should.
Stamp Duty Land Tax is a tax that non- resident investors are subject to in addition to the standard UK rates. The 3% levy on top of these can be expensive, but remember when considering all factors – one example being property values doubling every 15 or 20 years -the initial payment will seem small compared with what you may eventually see as your gain from investing long term here at home.
- Off-plan investment is just too risky.
A lot of people are scared of off-plan investing because it doesn’t make sense when you can’t see or touch the project. However, in reality this is one way to invest that has been proven successful time and again over decades with many different developers across various projects – all while making money.
The key thing here though isn’t just finding a great developer who knows their stuff (although they should!) but also makes sure everything goes smoothly for both parties involved: sellers by staying up front about expectations; buyers looking out for any problems before they arise so no one gets caught flat footed after completion.
References:
https://sevencapital.com/property-news/five-common-myths-uk-property-investment-non-uk-residents/
https://selectproperty.com/2021/08/6-common-myths-about-uk-property-investment/
