A blog post for foreign investors in UK Property –
It's an unfortunate blog that I bring you today about UK property investment companies, but one that I think will be of interest to our foreign investors such as Hong Kong, Singapore and South African investors.
Since mortgages are quite hard to get in the UK many real estate firms and foreign investors are deciding to travel to Asia and South Africa to sell their property. On the face of it I don't have any problems with that. That is until you see the absolutely ridiculous values they're putting on their property.
A real life example of a London development overpriced by £50,000
Recently, we took on a development that was priced at £465 per sqft. The developer then decided to take it to Hong Kong and try to sell them at seminars for £545 per sqft with a fake discount thrown in to give property investors the perception of a good deal.
I thought the Hong Kong foreign investors would be too smart and savvy to fall for the trick. I was wrong.
Another example: here in the UK you'd buy a 2 bedder of 700 sqft for £345,000 in the UK. Through Gladfish: £322,000. In Hong Kong (with your fake discount): £371,000. That's £50,000 more for exactly the same plot.
It's not hard to see why property experts love doing their Asian and South African property tours. Their overpriced property sells, and sells well.
If you're a foreign investor based in Asia or South Africa, my only advice to you is do your due diligence. If you don't know UK property, then obviously you shouldn't buy through a seminar or local agent selling UK property!
If you'd like clarification, or simply more information on anything I've mentioned here, give the team a call on +44 (0)207 923 6100 or www.ezytrac.co.uk.
Live with passion,
Brett Alegre-Wood
