Why do foreign investors keep buying in the UK?
Despite the uncertainty of Brexit (a few weeks away at time of writing), most investors keep buying in the UK (and so are we).
Here are a few reasons why:
– The demand for housing keeps increasing and builders are not creating enough new dwellings (estimated additional shortage of 150,000 houses every year!)
– The returns are much more attractive than in most other countries in the world.
– English Law offers great protection and foreign investors are welcomed (as opposed to many countries implementing protectionist measures)
– Worst case, a dip similar to the one that happened in 2008 would only temporarily affect the capital gain but not the cash flow, nor the long term prospects (the market is now up over 60% after dropping about 20% between 2008 and 2010).
– The forecast is for the interest rates to remain low over the coming years.
By no mean should you blindly invest, but as long as due diligence is done there are a lot of opportunities to create value!