This kind of investment is equivalent to changing 1 USD into $20, amplifying the investment amount with legal preferential treatment and using little money, and finally recovering a large amount of value-added income, while the European real estate market does not have to pay capital gains tax.
According to the judgment of a professional real estate investment company in the UK, the biggest policy change in the UK housing market recently is the possibility of substantially increasing the capital gains tax. In this case, perhaps chain investment is also a good choice, that is, buying a house, for example, the original price is 200 thousand, and the house will appreciate to 300 thousand in a few years.
At this time, the homeowner can apply to the bank for re-mortgage, that is, get a loan equivalent to the appreciation difference, use this loan to reinvest in the second house, and so on. In Britain, for investors, this kind of chain investment allows investors to own multiple houses at the same time, and the loan policy can revitalize the property and avoid the losses caused by the increase of capital gains tax by British real estate agents.
Britain has limited land resources, unlike the United States and Australia, which have a large number of new houses. Most houses in the British property market are second-hand houses, and the number of new houses in London will not exceed 1 10,000 sets every year. At present, a two-bedroom apartment near the City of London is about 250,000 pounds, and the rental yield can reach 6% to 7%.
Moreover, because British property rights can be held for a long time, the ratio of rent to house price in Europe is "reasonable", which makes more investors prefer to buy a house in Britain.
According to the location of the house, the yield of the house in Britain also varies greatly. In the London area, the investment cost can be recovered in about 20 years on average. Investors who come to London to buy a house are interested in the stability of the return on investment in the UK. The growth of Asian capital and the rising rent in London make the houses in central London very popular with Asian capital.
According to relevant statistics, although the house price in London has risen by 14 months, it is still 32% lower than the peak period. The sound housing custody mechanism in the British market is also a reason for investors to "rest assured".