Weak GBP Encourages Expat & Foreign Investors to UK Buy To Let Property
The weak pound is an avenue that investors can make money. Couple the weak pound with rental yields on buy to let property, why would any consider bonds or stocks at the moment.
Expat property investors & Foreign property investors are taking advantage of the persistent low value of the Pound to snap up buy to let homes in the UK. The Pound has spent the three years since the Brexit referendum languishing between £1.1 and £1.2 to the US dollar – with a high of £1.195 in July 2016 and a low of £1.07 in August 2019. We are selling properties to property investors from Hong Kong, Qatar, Saudi Arabia, Dubai and Israel. We even have a niche of a niche. We specialize in social housing that are on 10 year contracts to house needy and vulnerable people. There are no voids…no managment and no maintenance.
Add in the low GBP, “The devaluation of the pound since the Brexit vote in 2016 has of course reduced the upfront cost of purchasing a UK property if you are earning or have savings in a foreign currency. On 10 June 2016 the exchange rate was 1.43 US dollars to the pound, recently it touched 1.20, a 16% reduction in the dollar amount required to fund a given amount of Sterling.
“Once the property has been purchased, the rental income will be paid in Sterling which removes most of the currency risk. We believe many overseas residents are considering UK property good value at present, which is resulting in record levels of interest.
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