UK Property investment - Overseas investors
Discussion
Afternoon everyone,
I was previously a member on here for a while but forgot my log in details and dont use the original (old) email (Doh!).
Anyway, I am at a point in my life/career when I am looking to make changes since starting a family, I am in the fortunate position that financially I am doing okay. I have enough money in the bank to start new ventures, my business is currently for sale which will help plans going forward and my overheads are very little with most covered by BTL 'profits' so although there is an element of risk in changing it's probably not as 'bad' as others.
Over the years I have invested in property in the UK as a hobby (I recently moved abroad but still visit/invest in the UK), these have mostly been BTL properties and the odd flip. I always use alternative ways of buying property whether that be word of mouth, social media, previous business/property relationships or even hitting the ground and putting my number in the area I want to buy. By doing this I have picked up some good below market value properties.
At the moment I am looking to sell 3-4 properties so I can purchase more and also move them to my LTD co for tax reasons now I am outside the UK.
One thing I have noticed since talking through my ideas on various property pages/forums is that there is a lot of investors looking to buy in the UK from overseas or currently based in the UK (mainly UAE, far east nationals), some even reached out to me about buying mine or looking for advice on where to buy to get a similar yield (I get about 10-12%).
Having always been in business it got me thinking, is there a 'gap' in my preferred buying area in the UK to either help source properties for a fee or even better, offer overseas buyers an 'off the shelf' package, I will buy the property my self, renovate, get it up to a legal standard and put tenants in then offer to manage it (this would be done third party through a contact) or offer them properties which they will buy and I can then arrange/carry out the work and make sure again everything is up to a UK legal level and find them reliable tenants.
I am not looking to become an estate agent or full time property manager but I could use my current property management company who have been excellent and get some sort of kick back or percentage form them to sweeten the deal further for me until perhaps there is enough on their books to look at options further down the line (perhaps employ someone to manage in the future).
Anyway, there is a lot of investigating to do yet including FCA registration if I decide to go down this route but is there anyone on here in a similar business. I have no problem posting online for investors and even flying to trade/conference shows to put a face to my name in the future once/if it gets more established.
I have friends and family in the UK who can carry out the work (qualified tradesmen) and I am often in the UK too to help manage and get stuck in which is why the properties I purchase I can usually renovate for a very reasonable price based on the above and existing trade accounts.
I think for ease a good tenanted property would be the easier option, I can go in there and renovate it get a tenant in etc and then the buyer is earning from day one and I make a reasonable profit. Most of the properties I would be looking at are around 70-100k mark.
An example on my last property, this was purchased at 39k (below market value), I gutted the property and spent about 6k in total. This brings in a consistent £475 (before tax) per month and is worth a realistic £60k now, probably 65k.
I would be happy walking away with around £10k profit from each house, the buyer has a property earning from day one and knows it wont need any major work for years to come. They also have my knowledge on the area and guidance through out.
Any input appreciated.
I was previously a member on here for a while but forgot my log in details and dont use the original (old) email (Doh!).
Anyway, I am at a point in my life/career when I am looking to make changes since starting a family, I am in the fortunate position that financially I am doing okay. I have enough money in the bank to start new ventures, my business is currently for sale which will help plans going forward and my overheads are very little with most covered by BTL 'profits' so although there is an element of risk in changing it's probably not as 'bad' as others.
Over the years I have invested in property in the UK as a hobby (I recently moved abroad but still visit/invest in the UK), these have mostly been BTL properties and the odd flip. I always use alternative ways of buying property whether that be word of mouth, social media, previous business/property relationships or even hitting the ground and putting my number in the area I want to buy. By doing this I have picked up some good below market value properties.
At the moment I am looking to sell 3-4 properties so I can purchase more and also move them to my LTD co for tax reasons now I am outside the UK.
One thing I have noticed since talking through my ideas on various property pages/forums is that there is a lot of investors looking to buy in the UK from overseas or currently based in the UK (mainly UAE, far east nationals), some even reached out to me about buying mine or looking for advice on where to buy to get a similar yield (I get about 10-12%).
Having always been in business it got me thinking, is there a 'gap' in my preferred buying area in the UK to either help source properties for a fee or even better, offer overseas buyers an 'off the shelf' package, I will buy the property my self, renovate, get it up to a legal standard and put tenants in then offer to manage it (this would be done third party through a contact) or offer them properties which they will buy and I can then arrange/carry out the work and make sure again everything is up to a UK legal level and find them reliable tenants.
I am not looking to become an estate agent or full time property manager but I could use my current property management company who have been excellent and get some sort of kick back or percentage form them to sweeten the deal further for me until perhaps there is enough on their books to look at options further down the line (perhaps employ someone to manage in the future).
Anyway, there is a lot of investigating to do yet including FCA registration if I decide to go down this route but is there anyone on here in a similar business. I have no problem posting online for investors and even flying to trade/conference shows to put a face to my name in the future once/if it gets more established.
I have friends and family in the UK who can carry out the work (qualified tradesmen) and I am often in the UK too to help manage and get stuck in which is why the properties I purchase I can usually renovate for a very reasonable price based on the above and existing trade accounts.
I think for ease a good tenanted property would be the easier option, I can go in there and renovate it get a tenant in etc and then the buyer is earning from day one and I make a reasonable profit. Most of the properties I would be looking at are around 70-100k mark.
An example on my last property, this was purchased at 39k (below market value), I gutted the property and spent about 6k in total. This brings in a consistent £475 (before tax) per month and is worth a realistic £60k now, probably 65k.
I would be happy walking away with around £10k profit from each house, the buyer has a property earning from day one and knows it wont need any major work for years to come. They also have my knowledge on the area and guidance through out.
Any input appreciated.
Edited by FreshStart on Wednesday 19th May 16:02
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