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29 March 2024

Now you can buy… even a home online

Published
By Martin Wilkinson

The UK property market is ripe for investors, and those interested in selecting a new asset don’t even need to travel over.

It’s unbelievable what we can now do at home with just the click of a mouse. As consumers, there’s almost nothing you can’t purchase online; from your weekly grocery shop right up to a brand new car or boat.

Even property is now being purchased online, and with good reason. It might seem a strange concept at first; after all, the majority of people buying property are looking for their next home, and so the ‘feel’ of a place means a lot. However, for buy-to-let property investors, the convenience of being able to expand their property portfolios with a few clicks of a mouse is unparalleled.

Why relocate to the UK?

First, why should investors turn their attentions to the UK? It might seem like an odd move but London – and its surrounding cities – are quickly becoming the playground of the rich and famous. According to insight from the Daily Telegraph, a favourable tax regime as well as a secure political and economic environment has led to London overtaking New York as the most important city for the super-rich.

Furthermore, the added allure of a prestigious address means the number of these people is expected to climb in coming years.

Vast amount of options

The amount of property available to view online is staggering, as are the amount of different UK estate agents. Even if you contacted a selected handful, you would still be viewing such a small percentage of the entire market that you might miss a great investment.

Whether you’re based in the UK or overseas, it’s highly recommended that you visit a site which collates investment opportunities from a large amount of individual estate agents.

Detailed area research

If you’ve found a potential investment opportunity but you’re unfamiliar with the area in which the property is located, you can perform extensive area research right from your living room. Not only can you look over images from inside the property on your computer, but you can also browse the local area using tools like Google’s Street View.

Weighing up the pros and cons of a property, and even comparing two different properties by yield or the future potential of the property market in that area, is far easier to do online.

Watch out for ‘quick sale’ companies

Like all markets, there will be those dodgy sales people looking to get ahead by cutting corners. Online auction sites, in particular, are particularly risky. While having the entire transaction completed in fewer than 60, 50, or even 40 days sounds appealing, it simply has to come at a price. This could come from fixed costs and unexpected fees, making it far more expensive than it would have been had you gone the more traditional route of using an online property investment site.

If it seems like you’re getting a bargain, chances are that the other person involved in the transaction is getting swindled. According to the Office of Fair Trading (OFT), homeowners selling via “quick sale” companies may receive far less than they should for their property. A BBC article highlights how some companies agree to buy a house, but then reduce the price at the very last minute, costing the homeowner looking to sell large sums of money. The elderly are at particular risk from this danger.

Ultimately, it’s far more beneficial to use a respected, reputable, professional online company.

Buying in busy markets

There is always going to be a huge demand to live in England’s capital, and therefore every property that becomes available is rife with interest.

The danger of buying in such a busy market is that interest rates could end up doubling your mortgage payments. You could also end up buying a property that you’ll regret later on, simply because of the competition for London property. Having the luxury of help and advice from a specialist in UK property investment is arguably the biggest benefit that a property investor buying online could have. You might find it’s in your best interest to invest in a location you’ve never even heard of!

Note: Martin Wilkinson is the Founder and Managing Director of Buy2Let. He has been involved in many other residential and commercial ventures and is an experienced property consultant.