Investing in property abroad is a tempting option, particularly when the weather’s bad in the UK. The prospect of renting out a buy-to-let property somewhere warm, then using it as your own personal holiday home from time to time, is undeniably appealing.
However, there are a lot of advantages to investing in property in the UK too. If you’re not sure which option is best for you, here’s a quick run-through of the advantages and disadvantages of both, to help you make up your mind.
Investing Abroad – The Lowdown
- Option to use as a holiday home. This is probably the best reason to buy abroad; as it’s a major perk to have a property you can escape to whenever you wish. Plus, you can let family members use it too (if you’re feeling kind).
- Attract the holiday market. Holiday rents tend to generate a high yield, which means there’s plenty of money-making potential.
- Find a good bargain. If you’re willing to think outside the box, there are plenty of up-and-coming holiday destinations that have bargain buy-to-let properties for sale on offer.
- Harder to keep an eye on. You’re living some distance from your investment, which makes it difficult in terms of maintenance / security.
- Buying abroad can be tricky. Country-specific laws, bureaucracy and planning permission can all add serious complexity to the sale, especially if you’re buying in a location where you don’t speak the local language.
- Out of season, you won’t make much money. If you’re renting the property out as a holiday let, it’ll be sitting empty when it’s not high season; which can eat into your profits.
Investing in Property in the UK – The Facts
- There are plenty of bargain properties. Make no mistake, there are lots of property investment opportunities in the UK too! If you’re working to a budget, certain locations in northern England, Wales and Scotland offer fantastic value for money.
- You’ve got better control. You’re in the same country as your UK property investment, which means you can keep a better eye on things. Or, if you choose to work with a letting agent, you’ll be able to communicate with them easily, as you both speak fluent English.
- You can choose which type of tenant you want to appeal to. If you want to rent out a holiday home, that’s still perfectly possible in the UK. Alternatively, you can rent to a range of other tenants; such as students, young professionals or ‘silver renters’ (retired tenants). In short, there’s a lot more versatility.
- Mild market uncertainties. Brexit is still casting a slight shadow on the UK property market, which has impacted sales and property prices. However, experts predict this will only be a temporary state of affairs.
- You can’t predict the weather. If you do decide to rent out your property as a holiday home, you may well find that the sun lets you down. Having said that, most people holidaying in the UK understand the risk of rain, whatever the season.
- Market complexity. The buy-to-let market in the UK can be complicated. That’s why we recommend working with a property agent.
The Buy2Let Shop
If you’re looking for advice and support when investing in property in the UK, talk to The Buy2Let Shop. Our team of professional property agents are on hand to help you throughout the investment process, and generate the best ROI possible for you.
To find out more, visit The Buy2Let Shop website today.