How to Invest in UK Property as an Australian Foreign National

How to Invest in UK Property as an Australian Foreign National

The UK property market is a tried and tested model for solid investment. The strength and resilience of UK property seen over the last twelve months is testament to this. But buying a UK property as an Australian foreign national brings with it a whole host of hurdles. We’ve prepared a quick guide for some things to consider as an Australian foreign national looking to invest in UK property.

Knowing the Marketplace as an Australian Foreign National.

‘The first thing we always advise our clients to do is to thoroughly research the property market’ says Stuart Marshall, CEO of Liquid Expat Mortgages. ‘It may seem obvious, but you’d be surprised how often we find clients that have no awareness of the current situation in the UK property market. For example, we’re currently seeing buyers and renters tend towards properties with more space and proximity to green spaces. This is adding substantial value to properties with these amenities. There’s also negative growth in London so steering clear of the capital will probably be a good idea where investment is concerned.’

‘That’s just one example. But keeping abreast of the market developments is vitally important. If you’re looking to invest in UK property in the near future, then it’s a good idea to keep an eye on the UK’s situation in the next few months as change is sure to come with the aftermath of the pandemic’.

Understand the Differences.

Understanding the differences between making an offer in the UK and in Australia is important. In Australia, properties are usually found by real estate agents whereas, in the UK, finding a property is normally the job of the buyer who then contacts the property agent selling the property.

If you’re buying after the closure of the stamp duty holiday – which is likely given the length of time properties are currently taking to complete – then you need to be aware that your purchase will be subject to higher rates of stamp duty (because of a recent surcharge for overseas buyers). It’s important to be aware of this when costing your investment since, depending on the price of the property, this added expense can add a great deal of cost to your investment. And there are other taxes to consider too including income tax, capital gains tax and changing legislation for landlords.

Seek Advice from an Expert Mortgage Broker.

Obtaining a UK mortgage from abroad can be difficult and has proven to be an insurmountable barrier for some looking to invest in UK property. Thankfully, it’s now much easier to get a mortgage on a UK property from abroad than it has been in the past. This is thanks to the advent of specialist brokers and lenders who are specifically geared towards servicing overseas buyers.

‘A specialist broker can make sure that you’re aware of everything you need to know and have everything in order so that you can move as quickly as possible when you find the right property. With the present uncertainty, heeding the advice of an expert is more important than ever. For example, if you’re looking to purchase an investment property as a holiday let, it’s likely that your income will be considered differently from a standard buy-to-let foreign national mortgage.’

‘Whichever way you look at it, you will benefit from the advice of experts who are dealing exclusively with expats or overseas buyers. As such we can access a wider range of bespoke mortgage products specifically aimed at the expat mortgage market. What’s more, a specialist mortgage broker like Liquid Expat Mortgages can also assist with the whole application process and ensure a seamless service.’

Disclaimer: Please note that Liquid Expat Mortgages has no direct control over the timescales relating to either the processing of mortgage applications or mortgage offers being issued by lenders. Liquid Expat Mortgages has no control of the legal process and CANNOT accept any responsibility nor liability should your application not be processed prior to current Stamp Duty Land Tax rules expiring on 30th September 2021 or any extension of that date.

Liquid Expat Mortgages
Unit F2, Waterfold Business Park,
Bury BL9 7BR
Phone: +44 (0) 161 871 1216

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+44 (0) 161 633 5009