Thursday, December 12, 2013

UK vs. EU Property Investment

 Property investment can be lucrative, and those who do it right are able to secure healthy profits as a result. The two major models available to property investors are buy to let and buy to sell, and both have particular advantages that make them more or less suitable, depending on your circumstances. The next major decision to make is whether to invest in UK property, or whether to take your investment capital overseas, with an EU property investment. Again, both have their merits, but there are particular reasons why you might be led to one or the other.

Investing in property as a model has the potential to earn significant returns. There are few things you can buy or sell that have the value of a house, or a commercial property. In fact, for the majority of people across Europe, purchasing a home or paying their monthly rent is one of the biggest costs and financial commitments they will ever take on. This makes it attractive for investors, because the sums involved are typically much bigger. This means that investment capital can be generating a more significant return, at a quicker pace, than if it were invested in virtually any other project.


















Image source: http://www.polisnetwork.eu/uploads/Pages/EU_Project_support-small.jpg


When it comes to investing in property in the UK, there is the major advantage of local knowledge that is to your advantage. Buying, investing and developing in the UK is helpful when you know how the UK housing market works, the laws for doing business, and the demographics of areas like Kingsbridge. While the market may already be highly developed, and more expensive than some of its European counterparts, there is solid, reliable demand for both rental and sale properties across the UK that makes investing here a viable option. But some investors are choosing to be a little more adventurous in pursuit of their profit.

Investing in property within the
wider EU is an alternative option. The benefit of this type of approach is that you can often secure lower prices in growing economies, or in countries where house prices are set to rapidly rise. This can be a good way to achieve an even better return for your investments in the property market, although this strategy has some obvious disadvantages too. For starters, things as simple as a language barrier can be a real problem to the overall success of your EU property investment.

Image source: http://static.guim.co.uk/sys-images/Guardian/About/General/2011/9/16/1316170342300/Property-viewing--007.jpg

Investing in property is clearly an attractive model, whether that is an investment in an industrial estate in Wandsworth, or a 4-bedroom family home in Warsaw. There are opportunities for investors with ready capital and the right financial backing to make waves, both at home and overseas, through investing in the right types of property. Provided you have thought through the various challenges, obstacles and advantages of different types of investment, you should be able to make a healthy return, particularly if you are prepared to hold off for the perfect opportunity.