The UK is a very popular option for many foreigners because of the high living standard, great education system, excellent medical care, and overall conditions that are providing a lot of potential to everyone. There are different ways to acquire citizenship, and it is not always a simple process. On the other hand, if you are interested in buying a property there, you can do that as a foreigner without any issues.
However, you have to keep in mind that buying a house there won’t be a guarantee for a citizenship. There is a rule where you can get permanent residence after investing more than 5 million pounds. Therefore, there are other criteria that you will have to meet for that. On the other side, investing in property brings many other benefits.
If you are planning to start a new life in this country, or you simply want to make an investment that you can turn into profit, the first step is to learn more about the real estate market. The most important thing is to find a reliable agency that will help you if you want to buy a house in Birmingham or some other city. When it comes to Birmingham, it is getting more and more popular, and it might be the best option for a foreigner to buy a house there.
Check the Official Regulations
There are some strict rules when it comes to buying property in this country. They are related to both foreign and domestic people. The most important thing that you should know is that you can legally buy a house there even if you never visited this country before. You don’t even need a visa for that.
On the other hand, there is an option to get a tier 1 visa if you are making an investment of over 2 million pounds. That will help you stay in the country for a longer time. The rules for getting one is to be over 18, to open a bank account in the UK, and to prove that the money you are investing is yours. There is even an option to get a mortgage. However, the terms are usually more demanding.
When it comes to required documentation, you will need to prove the source of income and prove that you didn’t get it through money laundering or some other criminal activity. Other required documents are proof of address and identity.
Another important detail is related to taxes. You will need to pay a fee when you buy a house. The fee depends on the value. There are different categories where you will have to pay 5% for a house that is worth around 100,000, while it will be higher for more valuable assets, and it goes up to 17% if the property is worth 1.5 million. Moreover there is an additional fee of 3% if you want to buy another property, while you will also have to pay the 2% fee as a foreign investor.
When it comes to renting, you will have to pay standard fees. There is a great solution for people who are not spending most of their time in the UK since you can pay taxes annually or choose an option where they will be deducted automatically each month.
Benefits of Buying Property In Birmingham
One of the main reasons to consider investing in property in this city is because the prices are rising and it is estimated that this trend will continue in the future as well. According to the statistics, we can expect that the average value will rise by around 15% in the next few years. On the other hand, houses and apartments are still much more affordable when compared to London.
The average price is around 3 times lower when compared with the biggest city in the UK. Moreover, this place represents the second biggest economy in the country, and it is expected that more people will be interested in moving there, but also more investors and new businesses that will affect the values of real estate.
Investing in property there can be a profitable solution due to the high rise in popularity. More than 500,000 people are working in this city, and there will be even more of them in the future. A lot of new companies are interested in opening their businesses there, especially when it comes to the IT sector.
We can see that some big names in this industry have chosen this place to test the latest technologies like the 5G network, batteries, and more. These are all factors that are showing that the rising trend will continue and more people will be interested in moving there. For someone who owns a property in this city, that means higher rental prices.
Another advantage is the location of this city. It is well-connected with all other areas and represents a great strategic location for businesses, which is one of the main reasons why so many of them are opening companies in this place. Also, it has a lower population density, while the potential is huge. There is a project of high-speed trail that will connect this city with London, and provide a 45-drive to the capital.
Furthermore, there are many universities, which makes it even easier to rent your apartment. Some of the biggest schools are Aston, Newman, University of Birmingham, and more than 20 other schools around this city. Those interested in living there should know that it is a vibrant place full of interesting events, especially when it comes to art and music.
The Bottom Line
As you can see, buying a property in this city as a foreigner is not complicated. However, it is important to research the market and find the best option. When it comes to legal requirements, you will need to prove the source of your funds, and pay taxes that include some additional fees. Finding a good real estate agency is always the best solution to invest in the right property.
