UK Property Investment
Information

Investors often ask me for information about what part of the UK is the best place to invest in property.

My answer is always the north of England and Scotland.

WHY?

Simply because property up north is still affordable to first-time buyers and the rental returns stack up as an investment.

I find that properties down south of the country are so over-inflated that the rent barely covers your running costs, let alone your mortgage re-payments. Once you have all the information, it becomes clear that the south is not the right place for UK property investment.

Ever since the decline of the coalmining and shipbuilding industries in the north, our government has been investing millions to stimulate the local economy. Currently many regeneration projects target deprived regions in the northeast of England. These are funded not only by our government, but also with European and international funds.

In addition, our government has been investing millions in education. As a result, thousands of qualified undergraduate students are seeking work in these regions.

Corporate businesses located in central London are moving their head offices to the north because of the lower land costs, tax incentives and the educated labour force.

These are some of the principal reasons why the office markets are booming in cities like Manchester and Liverpool, and in Scotland. This makes them excellent choices for UK property investment.

Statistics show that average salaries in the north are increasing faster than those in the south. People have more disposable income than they did in the past. They use this extra money to go shopping, visit cinemas and start new businesses that require industrial space. This raises demand for commercial property.

I know that many people have a prejudiced opinion of northerners as full of binge drinkers who commit burglary, sexual assaults, violate crime and car theft. But these stereotypes simply are not true. As a matter of fact, statistics show that London has one of the worst crime rates in the UK.

Wake UP! I’m providing all the information you need to make a successful UK property investment!

The north is catching up with the south and the region is getting richer every day.

Let me tell you about a conversation I had with my neighbour the other day.

He had bought a two-bedroom flat in London for £425,000 with a rental income of £20,000 a year for his retirement plan. He seemed so proud of himself, confident that he made the right decision.

Curious, I asked him for further details about the transaction.

He said that the property will not be ready until 2010. There is a guaranteed rental for the first two years at 6.5%. He paid a 10% deposit of £42,500 and the remainder is due upon completion.

When I asked him about the service charge he was looking to pay, he stared at me blankly. Then I asked him what rent a local two-bedroom flat gets, and again his face was blank. How do you think he reacted when I told him how much he would have to pay for the stamp duty bill?

My neighbour clearly lacked the information needed to make an appropriate UK property investment.

With the same amount of money, I could have bought four properties with 7% returns at the more affordable end of the market, thereby achieving higher capital growth. Information is the key to success for UK property investment.

Remember: wherever you intend to buy property, whether in the UK or abroad, always find out whether the locals can afford to buy. You can do this by checking the average house price/income ratio. This ratio, along with related information, is the key to success in the UK property investment market.

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