Why should Hong Kong residents be looking to buy UK property? There are so many reasons. And now is a great time to be a potential investor, with the UK market primed for investment from Hong Kong.
Why should Hong Kong investors look to the UK property market?
Most people are aware of how lucrative it can be if you invest in the right properties. Having a strong property portfolio can pay huge financial dividends in many ways. The most obvious is the rental yields that can be earned from letting a property to a tenant. However, if done right, a property portfolio can make a huge contribution to a retirement plan. By selling properties that have appreciated in value, investors can find a great substitute for a pension.
Buying property in Hong Kong is a difficult process as all of the land is owned by the state and properties are expensive. This means that if Hong Kong residents want to build up a property portfolio, they should be looking abroad. But why the UK?
‘Why Buy in the UK?’ – COVID-19.
COVID-19 has had profound effects on almost every sector. The UK is on track to experience a period of economic depression as fallout from the pandemic. Despite numerous government schemes to stimulate the economy and incentivise employers to keep employing staff, it’s almost certain that a great deal of employers will be cutting jobs as belt-tightening measures. What follows from this is a lack of domestic confidence in the housing market. Many UK residents will be tentative to buy in the face of economic certainty and this leaves house prices lower and the market ripe for foreign investment.
‘Why Buy in the UK?’ – Stamp Duty Break.
Currently, the UK housing market is enjoying an unprecedented stamp duty holiday. This means that people buying properties below £500,000 are required to make an extra payment (usually 2% on properties between £125,001 and £250,000, 5% on properties between £250,001 and £925,000 and up to 10% and 12% for more expensive properties). The stamp duty holiday equates to massive savings for investors. Those who are on the fence about buying a UK property might be further spurred by the knowledge that stamp duty will be increased in April 2021 by a surcharge of 2% for overseas buyers. So, the best time for foreign investors is now.
‘Why Buy in the UK?’ – New BNO Rules.
With the announcement that BNO Passport holders in Hong Kong now have a route to British Citizenship for them and their immediate dependents, the UK could soon be home to many Hong Kong residents. There are nearly 3 million eligible for the newly announced special visa which means Hong Kong residents may spend longer in the UK, or even relocate to the UK.
It can be difficult to get a UK mortgage as a Hong Kong resident. Given that the current favourable situation for investors is temporary, time is of the essence for potential buyers. With this in mind, the hurdles Hong Kong investors face in getting a UK mortgage can mean missing out on the once in a lifetime market conditions. Using an expert mortgage broker like Liquid Expat Mortgages can really help to smooth the way in getting a mortgage in the UK.
Liquid Expat Mortgages
Unit F2, Waterfold Business Park,
Bury BL9 7BR
Phone: 0161 871 1216
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