Invest
Perfect storm brews for investors looking at the UK
A perfect storm of Brexit, falling interest rates and subdued housing growth is creating an attractive entry point for investors eyeing the UK property market.
Perfect storm brews for investors looking at the UK
A perfect storm of Brexit, falling interest rates and subdued housing growth is creating an attractive entry point for investors eyeing the UK property market.
Australians are finding bargains through some satellite cities in England, which are becoming increasingly built up and gentrified as business move from expensive quarters in London.
Speaking with Nest Egg, L1’s investment specialist Wayne Murray and chief investment officer Kee Gan discuss how Aussie investors can get ahead by investing funds in the UK.
Housing prices are (relatively) low
Australia and the UK have undergone incredibly different price cycles in the property market since the GFC.
While the Australian market continues to grow on average, this is not the case outside of UK’s London.
“London house prices have almost doubled since 2008, relative to other tier 1 cities, house prices haven’t really moved since 2007,” said Mr Gan.
“If you take a step back, they dropped around 10 to 15 per cent in 2008-09 during the GFC, they then did not move for the last eight years, with recovery starting in the last three or four years at 4 to 5 per cent per annum,” continued Mr Gan.
Prices are tipped to increase
The median house price outside of London ranges between 125,000 to 175,000 GBP, which is roughly $315,000.
There is set to be increased demand, against a backdrop of restricted supply, in various residential markets.
“The UK needs about 300,000 new homes per annum to keep up with population growth and in the past 10 years have only yielded about half that amount,” said Mr Gan.
“The typical rental yield outside of London is 7 per cent. People can buy a house at 1.5 to 2 per cent mortgages, making it much cheaper to buy a home instead of renting,” continue Mr Gan.
This email address is being protected from spambots. You need JavaScript enabled to view it.
About the author
About the author
Property
Poor wage growth could impede home price growth
With wages growth at record-low levels, a property expert has warned that continuing low and flat wages could impede home price growth. ...Read more
Property
Negotiating a lower interest rate on your property loan
The banks are customer hungry, meaning they’re willing to offer increased discounts to new customers and apply these discounts to existing customer loans, a mortgage broker has said. ...Read more
Property
How to determine the real value of a property
With various factors affecting market value and pricing, can one truly predict what buyers will pay for properties? ...Read more
Property
House prices tipped to soar 20% in 2 years: Westpac
House prices in Sydney are tipped to grow by 20 per cent over the next two years, and by 18 per cent in Melbourne, as a leading economist predicts strong economic growth following the rollout of the C...Read more
Property
5 tips to unearth the next property hotspots
A property expert has bullishly claimed that property hotspots are a “complete myth” that almost guarantees buyers will pay top dollar, and has instead urged buyers to seek out the “warm spots...Read more
Property
Top 10 inland rural towns to invest in
While it’s become apparent that regional housing markets have stolen the spotlight, having outpaced their capital city counterparts in 2020, new research has shown that inland rural towns have also ...Read more
Property
Where to buy under $300k
A positively geared property with high capital growth potential does not necessarily need to carry an astronomical price tag, an expert has said, with new market entrants able to land a home for under...Read more
Property
‘Great Australian dream’ of owning a home lives on amid COVID
Most Australian investors and home buyers were largely undeterred by the events of 2020, remaining eager to push through with their investment plans, a new survey has found. ...Read more
Property
Poor wage growth could impede home price growth
With wages growth at record-low levels, a property expert has warned that continuing low and flat wages could impede home price growth. ...Read more
Property
Negotiating a lower interest rate on your property loan
The banks are customer hungry, meaning they’re willing to offer increased discounts to new customers and apply these discounts to existing customer loans, a mortgage broker has said. ...Read more
Property
How to determine the real value of a property
With various factors affecting market value and pricing, can one truly predict what buyers will pay for properties? ...Read more
Property
House prices tipped to soar 20% in 2 years: Westpac
House prices in Sydney are tipped to grow by 20 per cent over the next two years, and by 18 per cent in Melbourne, as a leading economist predicts strong economic growth following the rollout of the C...Read more
Property
5 tips to unearth the next property hotspots
A property expert has bullishly claimed that property hotspots are a “complete myth” that almost guarantees buyers will pay top dollar, and has instead urged buyers to seek out the “warm spots...Read more
Property
Top 10 inland rural towns to invest in
While it’s become apparent that regional housing markets have stolen the spotlight, having outpaced their capital city counterparts in 2020, new research has shown that inland rural towns have also ...Read more
Property
Where to buy under $300k
A positively geared property with high capital growth potential does not necessarily need to carry an astronomical price tag, an expert has said, with new market entrants able to land a home for under...Read more
Property
‘Great Australian dream’ of owning a home lives on amid COVID
Most Australian investors and home buyers were largely undeterred by the events of 2020, remaining eager to push through with their investment plans, a new survey has found. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
