Why Foreign Investors Look to Invest in UK Land - The meteoric rise in London residential prices may cool with a new capital gains tax on non-residents. But foreign investment in UK house building could advance. |
|
Business Related Topics...
Computer Related Topics...
Entertainment, Recreation & Sports Related Topics...
Health & Fitness Related Topics...
Home & Family Related Topics...
Shopping Related Topics...
Would you like to submit articles to our site? Have a question or a problem?
You are here: DIME Home > Investing > Why Foreign Investors Look to Invest in UK Land
The meteoric rise in London residential prices may cool with a new capital gains tax on non-residents. But foreign investment in UK house building could advance.
Author: Bradley Weiss
Date: Jan 26, 2015 - 4:46:06 AM
When UK Chancellor of the Exchequer George Osborne announced in 2014 that a capital gains tax on foreign real estate buyers would be imposed, many who felt it was long overdue cheered him. If enacted in April 2015, this will place the same tax burden on non-UK owners of second homes as is currently placed on British citizens. But will it cool the overheated London real estate market? And might it impact foreign investors in UK land and real estate?
Already, threat of the tax seems to be slowing the purchase of high-value residences in London. Some real estate companies predict that current investors – many from China, India, the Middle Eastern countries, and Russia – might sell their holdings before 2015 to avoid the tax. Others suggest that the stability of UK real estate will prove to be a bigger factor than this tax, or that foreign owners might shift their investments from second homes to real asset investing that has more to do with development and building than owning and occupying.
Offering some credence to this ‘the-tax-doesn’t-matter’ school of thought is how foreign investors are increasingly buying homes outside London. The Daily Mail reported in October 2014 that “investors keen to make a profit from the booming UK property market are purchasing homes across the country” in places that include South Wales, Weston-super-Mare, Manchester, Liverpool and Sheffield. These purchases of middle-class and starter homes are up 20 per cent in 2014 over 2013, and most are bought with cash.
What seems to be driving a spectrum of investments in the UK is simply that opportunities have cooled elsewhere. The real estate firm JLL reported in the second quarter 2014 that “major Chinese residential developers look for opportunities overseas to counteract slower economic and price growth at home,” adding that investments in residential development are up 80 per cent this year, concentrated in the UK, Australia and the United States. The office sector may get the bulk of this, but “there is increasing interest in residential development,” says JLL in its online publication The Investor. Other indicators that individuals and institutions, some working through real asset funds, are drawn to the UK include:
It is impossible to predict the outcome of the proposed new capital gains tax on foreign investors, but the demand for housing is almost a future certainty given the extreme shortage in the UK. But any investor considering real estate for their portfolio needs to discuss it in all its nuances with an independent financial advisor.
Apartments & Villas in DubaiJul 10, 2011 - 9:40:06 AM The Dubai real estate and property market is known for its high standard quality and luxurious life style that it offers to the residents of Dubai. There have been a number out class and fascinating construction projects in Dubai that has made the world adore Dubai’s property developers, constructors, engineers, and architectures. In Dubai real estate, its not about constructing a project but about being the best developing some thing extraordinary, unique, while maintaining high standards of quality and comport and these qualities have become a big reason for the attraction of investor and buyers in the real estate and property market of Dubai.... [Read the full story] |
Oil & Gas Investments Risk ProfilesJul 7, 2011 - 11:14:13 AM Unity Resources Oil & Gas Education Series - Free White Papers... [Read the full story] |
Bamboo Investments - The Greener Way to Make MoneyApr 19, 2011 - 4:17:19 PM As the news is constantly full of information supporting scientific papers on global warming, people are increasingly looking for ways to generate money whilst saving their conscience and bamboo is an ideal medium term investment. It is an extraordinary plant in that it sequesters four times more CO2 than ordinary timber, and produces up to 35% more oxygen thanks to its quick growth.... [Read the full story] |
Benefits of CFD TradingApr 11, 2011 - 9:56:39 PM CFD’s also referred to as contracts for difference has gained huge popularity in the past few years. CFD is nothing but an agreement between the buyer and seller agreeing to exchange the difference in the current value of a share, currency, commodity or index and its value at the end of the contract. As long as this difference is positive, the seller would pay the buyer. On the contrary when this difference becomes negative, the buyer loses his money.... [Read the full story] |
Search for articles: |
Latest Articles in All Categories |
Putting Up a Small Commercial Printing Business |
So You Might Be Unemployed And Desire To Become A San Francisco Real Estate Investor Now |
Meditation and Mindfulness: Dealing With Emotion |
CPA Websites: Five Essential Ideas for Composing Convincing Articles |
Set Goals In Order to Come Up With Your Action Plan |
Is the Air in Your Home Safe to Breathe? |
Coarse Fishing Tackle Review: The JW Young 13ft Trotter Rod |
Section 1031 Exchanges For San Diego Real Estate Investors |
Phoenix Real Estate Investing For Highest Possible Earnings |
Legendary are the Volk Racing TE37 Wheels |
Developing the Next Generation Wall Station (ChaseDesk™) for Healthcare - A Case Study |
What are step down transformers? |
Introducing Sharehype, the Revolutionary Tool for Online Marketers |
Rewards To Shopping For Austin Real Estate On The Web |
Hydroponics for Beginners |
Would you like submit your articles and have them approved on a priority status? Find out more about how you can become a Priority author for pennies a day! Click here.
Dime-co.com Home |
|
|
|
|
|
|
|
|
|
|
|
|
|
Disclaimer: Dime-Co.Com is an online information article and video article network. All articles, video articles, comments, and other features herein are for informational purposes only and are provided "as is" without warranties, representations or guarantees of any kind. The views and opinions expressed in an article, comments, links or blogs are the author's own, and not necessarily those of dime-co.com's owners. For full disclaimer, please read our TOS.