Property Investment: The UK vs. Overseas

£80,000: That’s how much the price of a house in London has jumped since the beginning of the year. And with house prices around the rest of the UK showing an 8% increase, you might find yourself asking this question:
Is it more profitable to invest in properties in the UK or overseas?

Now an initial reaction to the rising house prices might be to immediately look overseas to discover alternative places to invest. In this frame of mind, articles such as “the top 20 places to invest around the world” will immediately have an appeal. These articles regale you with property investment opportunities such as:

•    £23,000 EcoHouse Units in the current investment hot-spot of Northern Brazil
•    £3.3m contemporary, prime-location, sea-front facing villas in Marbella, Spain
•    Exclusively located £1.02m one-bedroom apartments in the Palazzo Versace Dubai
•    Luxury flats for £480,000 in 75 wall, the heart of the Financial District in Manhattan, New York
•    Government incentivised £1.6m four-bedroom villas at the Royal Westmoreland golf resort in Barbados
•    £700,000 four-bedroom ski chalet apartments near Hokkaido, Japan

The overseas property investment opportunities are seemingly endless. And with the right sort of deal, it wouldn’t be hard to find a team of commercial finance brokers to help you finance it.
But how do you know whether the overseas deal is better than the opportunities right on your doorstep?

It all comes down to your property investment strategy.

There are numerous strategies such as:

•    Buying and reselling undervalued properties at auction
•    Property development – adding value to purchased properties and then reselling
•    Buying multiple high-yield properties and letting them out
•    Seeking out repossessed properties

The strategy you choose will determine the property investment opportunities that you pursue, and the finance deals that your brokers are able to put together for you.
And once you’re clear on your property investment strategy, then you’re able to leverage the numerous resources that are available.

For example, if your strategy were to seek out repossessed properties, then resources such as PropertyEarth,Whitehotproperty and certain auction sites would be invaluable to you.

Or if you were following the strategy of property development, then you would be able to specifically recruit a team of specialists to make the most of your money.

So instead of fretting about whether to invest in UK or overseas properties, start by clarifying your property investment strategy.

And then using the available resources and expertise, work with your commercial finance brokers to find the deal that will ultimately be profitable and worthwhile for you.

Article By Ben Lloyd

June 3rd, 2014

Ben is the Director and Co-Founder of the Pure Group and Managing Director of Pure Property Finance.

Following a career in Barclays, where Ben was in the real estate finance team for 8 years, he decided that the market needed a more forward-thinking type of commercial brokerage so founded Pure Commercial Finance (now Pure Property Finance), the first company within the Pure Group.

Ben has extensive experience across the real estate sector and has participated in over £2bn of real estate transactions during the course of his career.

Ben oversees the general strategy at Pure Group and works with the senior leadership team to drive the Group forward. Ben is also on the Executive Committee of FIBA.

See more articles by Ben

Ready to talk finance?

Call us and speak to one of our experts

02920 766 565 Request a Callback