Benefits of Why the Chinese Invest in UK Property
 

• Chinese investors can buy as much property as they can afford in the UK.

• There are no citizenship, visa or residency requirements.

• The UK is central. It shares part of its working day with both Beijing and New York, and is perfectly positioned for travel to America, Europe and Asia, with

• Heathrow offering fantastic global connections.

• We have an excellent education system. Four of the world’s top six universities are in the UK.

• New developments are restricted in London, so existing property retains its value.

• There are many large Chinese & Asian ethnic communities throughout the UK, with many thriving Chinatowns.

• The UK’s property market has demonstrated the most stable growth of any developed country over the last ten years, and its rental yield outstrips New York, Sydney, Paris, Milan, Toronto, Beijing and Shanghai.

• The UK is a stable democracy, which has protected property rights for hundreds of years.

The Benefits of Property Investment in the UK

It’s safe (as houses) “When you factor in the return and risk associated with buying property and shares, property wins hands down,” Lenders are more likely to lend on residential property than any other asset class – They will lend a higher proportion of the value (up to 95%) and at lower interest rates than any other asset class – including commercial property. This makes it a lot easier to borrow to invest in property than in any other asset class.

There is an ongoing demand for property – both rental property and property to buy.

Other people pay for your investment - Being able to borrow the vast majority of the asset value and the tax benefits, you’re also getting other people – namely tenants – to subsidise your investment through rental payments. You’re getting three different parties helping you make money through capital gain (or cash flow) – making property one of the most affordable investments around.

 

The property market is a more stable investment and is much less volatile than the share market due to the effort required in order to purchase a property – in terms of due diligence, legal checks, inspections, length of settlement periods and so on. This means that property is less prone to short-term speculators than paper asset classes.

“Properties in well located area's, underpinned by good supply and demand, rarely crash overnight or even over extended periods of time.

Bricks and mortar - is comforting to many investors as you’ve invested in something tangible – something you can ‘look at and touch’.

“Property is one of the few investments which you can actually see and feel, and this often makes it feel more real”.

The Government – regardless of party - wants house prices to remain robust and so governments look after voters who own or rent houses, they therefore can’t afford to upset them too much and are therefore unlikely to bring in legislation that adversely increases the cost of owning residential property.