Can I Buy UK Property From Saudi Arabia?Investing From Overseas
Yes, you can invest in UK property from Saudi Arabia, and buying an investment property in the UK as an investor from Saudi Arabia is a very popular option.
There are many reasons why Saudi buyers should consider investing in UK property.
Why Should You Invest in UK Property From Saudi Arabia
Here are a few of the most compelling reasons to invest in UK property:
- Strong growth potential: UK house prices have reached record highs in recent years, and there is still room for growth in some areas. For example, Savills forecasts that house prices in the North-West of England could rise by 11.7% by 2027.
- Stable market: The UK housing market has a proven ability to stand firm in tough times. Even during the COVID-19 pandemic, house prices continued to rise. This makes UK property a safe investment for overseas buyers.
- Affordable prices: Some of the best areas to invest in the UK have very reasonable prices. For example, Liverpool has an average property price over £100k below the national average. This means that overseas buyers can get a lot of property for their money in the UK.
- High rental yields: You can find high rental yields in top UK cities, meaning you have the incentive of a better return on your investment. North-West hotspots like Liverpool and Manchester regularly have properties with up to 8% yields. London is not always the best place for investors, as London property has lower yields.
There are no restrictions on foreigners buying property in the UK for investment purposes. However, if investors want to live in their purchased property, they will likely need a visa (unless they have British citizenship).
There are two types of ownership in the UK: freehold and leasehold. Freehold means you own the land and the property, while leasehold means you own the property but lease the land from the freeholder.
You may struggle to borrow a buy-to-let mortgage from a high street lender. This is because many high street lenders do not accept applications from international buyers. You may be able to get a mortgage from a specialist lender, but you will likely pay a higher interest rate.
Off-plan properties are a good option for overseas buyers. These properties are still under construction and are often more affordable than completed ones. You can also get flexible payment plans, which means you may not need a mortgage to invest.
When choosing an investment property, look for a combination of an affordable price, high rental yields, and a location with high tenant demand.
You may need to travel to the UK to complete the identity checks required for overseas buyers. This is to ensure that you are who you say you are.
On the completion date, you will pay the remaining purchase price balance, and the property will be yours. You can then begin finding tenants to rent the property and generate income.
There are many reasons why Saudi buyers should consider investing in UK property. The UK housing market is strong, stable, and affordable, making the potential for lucrative returns in the future quite high.