Investor interest in UK real estate and property has been rising sharply for over a year and all indications are that this trend is set to continue Lloyds of London now says.
The clearest indicator yet of this trend is the Lloyds of London Investor Sentiment Index which shows a whooping growth of 50 per cent in investor sentiment towards UK property since March 2013. This is a significant rise by any standards.
Lloyd’s further adds that expats are bound to do even better in the British real estate market as the sterling continues to lose ground to other major currencies. In effect this means that investors using foreign currencies will tend to find properties cheap. This coupled with the fact that rents in the UK are on the rise will enable those with USD and Euro accounts abroad to get a lot more for their money.
Rick Otton, a real estate investment educator agrees but adds that the biggest impediment for expats to cash in on the situation is the misconception that one cannot enter the UK property market without putting down a hefty deposit. In effect this would mean that it cannot be done without taking out huge bank loans.
“I have been encouraging those hoping to purchase UK houses for sale to put aside their misconceptions that they require a deposit in order to purchase UK property, said Mr Otton.
For over 20 years now Otton has been sharing real estate strategies which many have found to be creative and is now urging expats to approach this golden opportunity to profit in UK Real Estate with an open mind. He recommends embracing his approach of seeking motivated sellers and opportunities arising from current circumstances on the ground amongst other innovative strategies.
He gives the examples of rental properties where in many instances owners of such property have found themselves under considerable financial pressure linked to running and managing the rental property. Many have ended up in serious debt and have therefore been more than happy to transfer ownership to any buyer willing to consider taking over their nagging debt burden and ease their financial stress.
Most people who hear about this for the first time find it an unrealistic or even far-fetched scenario. However Mr Otton says he has proved his case several times, most recently in an iTunes podcast where he demonstrated that not only is this strategy being used by more and more people entering the UK property market to buy but many are also doing it from outside Britain and in different corners of the globe. The use technological tools on the World Wide Web like skype and Ecosign amongst others makes it possible.
Otton says that by using his strategies and tools it is fairly easy for any expat investor to take over a buy-to-let mortgage with no deposit and begin to generate a passive income almost immediately. A quick profit can even be made if the same investor opts to re-sell the property right away. Otton adds with the current steeply rising prices in the UK property market it is very possible to make a substantial profit even if one opts to sell shortly after acquisition.
Otton says that his strategies for handling property acquisition have been proven successful in any economy. More so in the current property environment in the UK where high rents reign. There is a real chance for anybody to benefit hugely from the no money down and no associated risk approach, he says.
Statistics seem to back up Mr Otton. UK expats abroad who have purchased property there have had to contend with an average of a measly 47 percent rental. This means that property investments in those markets are hardly bringing in the desired returns. More so where rents tend to remain steady for years. When you add the fact that in most cases resale of property for a profit is difficult in most foreign real estate markets, it becomes clear that this kind of investment falls under the high risk category and losing your shirt is not uncommon.
In sharp contrast recent figures reveal that 71 percent of UK expats abroad report full time tenants in their UK properties.
Otton encourages expats to acquire real estate without bank loans or deposits which will enable most to not only cover their costs but to also establish cash flow at the same time.
“I encourage them to look for, and embrace, innovative strategies that will allow them to acquire UK property for little to no money down.”