Jul 19, 2021
The concept of real estate is hinged on property investment. This is an investment practice that involves buying land or landed property.
The idea is to earn financial returns by renting or waiting for the property’s value to appreciate before selling in due time. For more information about what property investment is, you can visit: https://www.investopedia.com/terms/i/investment-property.asp
It is also possible that the (real estate) investor plans to earn both by value appreciation and rental. You might have done your homework and discovered that earning well from the real estate market will require investing in certain parts of the world.
Places like the United Kingdom are considered to be hot spots. This is because the value of land and landed properties keep increasing in almost every part. As a result, investors from various parts of the world are eager to have a piece of the cake.
The question many of them have is if property investment as a foreigner is possible in the United Kingdom. Well, you should keep reading if this is the question on your mind.
Can Foreigners Engage in Property Investment without a VISA?
Foreigners can engage in property investment in the United Kingdom without a visa. This is because the UK just as with many other nations is interested in investments from foreign sources.
This is because it increases revenue gotten as a result of taxes from such practices. It also creates jobs for residents and indigenes of the nation.
Additionally, the activities of these people mean the problem of inadequate housing is resolved. So, the authorities have made the purchase of properties for investment possible.
However, it is not as easy as it seems. Several checks need to be conducted before this can happen. The investor also needs to be properly guided so that s/he can get a reasonable profit at the end of it all.
About Property Investment as a Foreigner in the United Kingdom
The real estate market in the UK is very promising. This is why many foreign investors are interested in property investment here. This is considering how there has been massive interest from players from China, other parts of the world, and even online. To know furthermore on this topic, you can read this.
But you have to understand the nitty-gritty before you decide to follow suit. One of the first things you need to understand is the taxation system. This is because there are taxes to be paid whether you are selling or buying a property.
As regards taxation, it is even likely that the authorities will be more demanding on foreign investors soon. For instance, we gathered that some of the land taxes have been reduced for certain reasons.
However, this is a temporal situation. So, you need to plan in case there is a tax increase.
Documents Required for Property Investment in the United Kingdom
There are legal procedures that have to be carried out before properties can be bought in the UK. One of such requires validating the identity of the buyer.
The main intent is to make sure there is no foul play on the part of the intending buyers. For instance, this will go a long way in proving that the purchase is not an avenue to launder money or make illegitimate funds seem legal. Against this backdrop, some of the documents required include:
Proof of Funds Source
Documents proving that the funds to be used in securing the property are legal are to be tendered. This could be tax returns, payslips, and a few other documents.
Documents Proving the Buyer’s Address
This is particularly important if the foreign buyer lives in the UK. Speaking of residing in the UK, there is a VISA set aside for people that want to invest in this manner. The Visa even allows close relations to come along.
You should know that this visa takes a while to process. However, some people get VISA help from some service providers to speed up the process.
The acceptable documents proving the buyer’s address include driver’s license, bank statement, and utility bills. Updated copies of any of these documents would meet this requirement.
Document Proving the Buyer’s Identity
Your driving license or passport is the most ideal document for this. You should make sure they are up to date.
You should also know that foreigners are not ruled out from applying for mortgages. This is even though the process will be more demanding for them. This is why we advise them to engage the services of a good broker for this.
We have discussed the possibility of foreigners making the most of property investment in the United Kingdom. So, this means you should not rule yourself out as a foreigner in the UK. Simply make informed decisions using the information shared here and seek further expert opinion.