Own Use Property
Future Own Use
If you are looking mainly for “own use” in the future either because you may relocate to the UK or for possible retirement, normally we would advise you NOT to buy a property yet. It may be best for you to just rent for a short while, if and when you come to the UK – until you were happy with the community and location. Then you could buy. Many clients end up buying in the wrong location and sometimes their circumstances change and the property purchased is not suited to their needs.
A first step in planning to come back may be to buy a pure investment property that gives income, grows in value, and is easily affordable without a mortgage. This would give you options for the future. You could then use the rental income from the investment property to pay for any property you rent for your own or family use. This gives you more flexibility and the ability to move around until you are sure where you finally wish to live.
Your own investment property can of course also be used for “own use”. If this is needed, you will just need to give the required notice – so that we can deal with our tenant fairly and relocate them to another nearby property. After this we can hand your property back to you in a good rentable condition.
Holiday Use
If you are looking for “holiday use” for only 1 or 2 months of the year, then in most instances it will be best for you to buy a property most suited for investment and to leave that rented out all of the time. You can keep the rental income in the UK and then use this income to pay for your holiday accommodation, as and when you visit. This is better, and gives you more flexibility as the investment property can be purchased for the best yields, price and investment returns – and not necessarily in areas you need to live in or visit. UK properties cannot be left vacant for long periods (as they may develop damp) and normally the tenancy agreements are for 12 months. Practically it is very difficult to use your own property for short holidays, as each time you have to give legal notice to tenants, then clean or renovate the property, change the utilities (gas, electric, water, internet etc) to your name. Then suitably furnish the property, as almost all UK properties are normally rented out unfurnished. Trying to do all these things quickly is not easy and will just spoil your holiday. It is better just to rent unless your holiday are very long (over 6 months).
Immediate Own Use
If you are in the UK and are looking for immediate own use, then our service is not suitable. We no longer sell properties for immediate own use. All of the houses we sell are already rented out. Normally our clients rent the properties to us. We sublet to our long-term tenants and aim to offer them secure accommodation for at least the first 3 years. Even after this, our clients normally continue with the same system and continue renting directly to us. This enables them to be passive investors, yet retain full control of thier property. However, you can of course give us notice if you wish, and we can move the tenants to another of our properties after the 3 years. Then you can take possession of your property and use it for your own use.
An “own use” property is one that is best suited for your particular needs – not the needs of tenants. In such cases location (near your own family and friends; or near your work location) is critical, as are personal things such as being near good schools. Also the community you may wish to live in and feel comfortable in would also be important. Typically, you would also get a mortgage for your own use property. With an “own use” property investment returns are not as important as your own personal preferences and location.
An “investment property” is one that is purchased to grow your money and give you a good income. Personal considerations of the local tenants are often more important. The property needs to be affordable, grow well in value, give a good % rental yield, be easy to rent out and easy to resell. In the UK, outside of London, the rental demand is at the low end of the market. Thus the best value investment properties are away from London and are low cost houses between £60,000 and £100,000. Expensive properties are not suitable for investment in the UK as rental yields are too low (capital % growth is similar).
If you need a property for immediate own use, then our service is not really suitable for you (as all of our properties are rented out and you need to give us the Required Notice – 6 months after the first 3 years). It is best to use the “open market” and use normal local estate agents in the area you wish to live in. This will enable you to see a wide range of houses in your desired location and enable you to select one that is most suited to your own personal needs.