Buying Investment Property in the UK - The Basics

Investment Property Mortgage / Finance:

• Borrow up to 80% of the purchase price (in sterling) from selected Irish Lenders 
  
• Or borrow 100% + costs by freeing up equity in your existing property
  

Pro's of Buying UK Property Investment:

• Lower entry costs than buying in Ireland, due to the lower property prices
  
• Lower Stamp Duty Costs 
  
• Taxation agreements in place between Ireland & UK so that you will not be 'double taxed' on the investment
  
• The common language and the geographical closeness of the UK (and low cost airline tickets), makes it easier to visit the property if necessary.
  
• Your rental income should service part or all of your mortgage

Con's of Property Investment in The UK:

• You will have to hire an agent to find you tenants and manage the property

Establish your Investment Goals:

• How long are you planning on keeping the property  
  
• Are you looking for capital appreciation or an income from the property (or both)?  
  Will  the rental income service the loan

Factors Affecting Potential Growth:

• Macro Influences  - The state of the economy, number of properties coming on the market,
  employment levels & pay levels, demographics (such as age profiles, movements of population etc) 
  
• Micro Influences - These are influences at the local level which you should research - e.g. are there new transport links being developed (new bypasses, dual carraigeways etc)?
  
• Is there scope for further development in the area? 
• Has planning - permission been granted for vast developments? 
• Are there plans for local authority housing in the area?
• Is the general area undergoing Urban Development? (which should result in the local property market increasing as a whole) 

Factors to consider when deciding on a potential property / area:

• Who will rent the property - decide on your preferred tenant type - professionals, families, students, tenants with local authority subsidies?  
  
• Cost of property
  
• Ease of renting (are there local hospitals, industrial estates or business parks etc where your targeted tenants work?
  
• Will the rent service the mortgage (or at least a significant portion of it)?
  

Upfront Costs:

• Deposit of 20% minimum (unless you release equity from your existing property)
  
• Stamp Duty
  
• Legal Fees
  
• Surveyors Report
  
• Refurbishment costs / furnishing costs

Ongoing Costs:

• Mortgage Payments
  
• Insurance costs (house insurance & mortgage protection)
  
• Management fee (apartment complexes)
  
• Rental / Management fee (if you use an agent).
  
• 'Downtime' - allow up to 2 months per year when the property is not rented
  
• Tax
  
• Maintenance

What's Required for Mortgage Approval:

• Income Details - P60, pay slips, Salary Cert (or accounts for self employed)
  
• Banking Details - Mortgage, Loan & current account statements
  
• I.D. - Passport / Driving License, Original Utility Bill