As more and more Chinese go to the UK to study and work, they are also beginning to consider buying real estate in the UK. However, before buying, it is vital to understand the UK property market and its associated knowledge. Home buyers should know the following.
1. Safety of house purchase
As an old developed country, the UK has a strict legal system and its real estate market is also very mature.It can be said that the UK is one of the most reliable places to invest in real estate in the world.Many family estates and properties have been passed down for hundreds of years, so buyers do not need to worry about the safety of investing in UK property, as long as they comply with laws and regulations.
2. Exchange rate
Due to the impact of Brexit, the pound exchange rate fell sharply in 2016 , and even though the exchange rate has rebounded now, it is still low relative to historical levels. For overseas investors, a low pound equates to better prices when buying property.
3. Loans#{11 }
The British real estate market is very open to overseas investors. There is no purchase restriction policy, and home buyers can enjoy the same rights and interests as locals. The British real estate market is safe and transparent, and buyers can choose to purchase a property with a low down payment or a loan. Off-plan houses usually require 2-5 years to be completed, and the down payment is usually 10% of the house price in the first year, and another 10% in the second year, and finally the remaining house price is paid when the house is handed over. If buying a home with a loan, the home buyer needs to start repaying the loan.
4. Taxes#{ 15}
When buying, renting or selling real estate in the UK, there are six main types of taxes involved: stamp duty, value-added tax, municipal property tax, personal income tax, capital Profits tax, inheritance tax.
For overseas investors who purchase real estate in the UK, stamp duty is very critical, because after the house is sold, only by paying stamp duty can it be recognized by the government.
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