There are share ownership and help to buy scheme which propping up the new build property price. New build is around 30% more expensive then resale property. People pays for the 30% extra for various reason, such as location, government buying scheme or the smell of new paint. For investment purposes based on ROI and property price appreciation, resale properties are far more attractive. Local council have been reluctant to sign-off high rise apartment about 10 years ago, and recently local councils are starting to build abundantly high rise to cope with demand, thus high rise apartment price appreciation will be under pressure due to the amount of apartment available in the market. Please do reconsider before buying new build high rise apartment in UK. Advise from a Malaysian living in London for 20 years.
All condominios are leasehold? Nop, that is wrong.There are freehold condominios (and there are landed leasehold properties as well). You can not compare a leasehold in Malaysia (public law), as those leasehold are private law. That means the landlord can decide about the conditions of the leasehold contract, what often leads to overpriced leases. What you must know about it: - usually after 100 years the property goes back to the landlord with very few compensation (so you better keep the maintaince to a minimum as you will loose the investment anyway) - the leasehold compensation payment usually is a floating rate and goes up with inflation and/or interest increase (so dont calculate with the actual lease, but with higher lease) - If some parcelholder fail to pay the lease, the community is responsible for the bill!!!! (so expect beeing forced to pay extra from time to time)
So if I were to purchase the cheapest property here (£260k), I will need to fork out of pocket: - Booking fee (assuming £500) - 20% deposit (£52k) - Legal fees (assuming £1k) - Mortgage broker fees (assuming £500 and it includes valuation fee and mortgage documentation charges) - Stamp Duty Land Tax for non UK resident (£250k x 2% +£10k x 7% = £5.7k) - Other incidentals (£300) Total = £60k or about RM 340k The rest of the financing (80% of the property purchase price = £208k) will be covered by mortgage. Since the property is in Manchester, it is likely to be a foreign bank because I know that Maybank only finance London zone 1 to 3 only; CIMB does not offer Buy-to-Let (BTL) loan from their London Branch and other Malaysian banks simply don't have any permission in the UK. So for my mortgage, 80% LTV (£208k), max tenure of 30 years (because I am under the age of 40), BTL mortgage rate of 7% pa = monthly mortgage instalment is £1,383. Sean said the expected rental from this property is £1,300 pcm. The expected rental is not enough to cover the mortgage instalment and I need to top up another £83 (about RM 500) every month just to service the mortgage. I am also aware that the net rental collection that I will get is less than £1,300 pcm because of the charges by the letting agent. Conclusion: It is a tough call. If I were to follow my head, it is a no because it does not look like a sound investment. If I were to follow my heart, it is a yes because I simply want to become a UK property owner.
Same thoughts. And this is if the bank is willing to provide loan to foreigners. Usually it is extremely difficult to get a loan. I was told that I quadrant is having quite a headache due to the current crowd in sg is also having problem to get a loan. Prolly Edinburgh is where i would aim for in time to come for my yearly summer break. :)
Interesting observation in UK. For the children of caucasion communities who are not well-off, majority of the children have to leave homes and find their own life when they turn 18. If the children want to be rich, they have to work and find their own wealth. On the other hand, Asian communities may place importance on multi-generational living arrangements, where owning a property provides the space and stability necessary to accommodate extended family members. They also view home-ownership as a wealth building, symbol of stability and success, as well as long-term investment potential.
@@iherng don't forget the maintenance, agent fee (if you are not self manage, aka 7-10% of your monthly rental + VAT), also GBP exchange rate is consider pretty high at the moment. Also stamp duty is higher for buy to let property as well as the mortgate, though you can opt for interests only mortgage. Another thing the repairing cost is shooting high sky at the moment, fixing a bathroom tap will cost 20 quid for the item, but 100+ for the labour.
though, this is not to scared ppl away, but is good to know most things before the decision. but I would say in hotspot areas, the occupied rate is close to 99%, so easy to rent out...
I just viewed a property last weekend in London. Talked to the agent and she said the renting market is mental. You literally need to bid for the flat! However there are so many reduced priced property stocks in the past two months!
As advised by Sean, it’s not a good deal price for sure if you just walk into a development sales gallery to buy a new build unit in Malaysia. In the UK, it’s the same. However if Sean can get a very lucrative discount from the developer/agent then it’s another story 😊
Buy To Let in the UK? Unless you have a truckload of money then I would strongly advise against it. The 6% return on capital claimed by the developers is just sales hype. There are lots of hidden costs and if you have to borrow money to buy your property you'll be in deep deep shit if there is hike on your mortgage interest. However, if £300K is just pocket money to you then yes I would be tempted to buy one of those newly-built flats in Manchester as a second home or to accommodate friends and relatives when they visit the Manchester. The bottom line is DO NOT rely on your rental income to repay your mortgage! The UK Law is heavily in favor of your tenant so it is imperative that you secure a good tenant and demand the maximum deposit allowed (currently 5 weeks rent). Some Landlord asks for 1 year's rent in advance (there is no legal limit for rent advance) but you may find it difficult to rent your property. If your tenant defaults on his/her rent you will have to wait for two months or 8 weeks before you can issue a section 8 to evict him and he will have to leave within 14 days but there is no guarantee that he would. You will then have to get the Bailiffs to force him out. The process can get very messy. We rent out two properties and we're in the process of selling up because the trouble you get from bad tenants is just not worth it.
European are wellfare/pension oriented. Citizens no need to worry about theyr retirement arrangements. That's why they do not need to buy many investment properties.
Retirement age ranges from 62 to 67 at present. Most of their governments are in very heavy debt. France just raised the retirement age. Who knows what's coming for those that will rely solely on pensions.
@@kenlee1416 The UK has no retirement age. The previous statutory retirement age of 65 has been abolished in 2011 (12 years ago). One can work forever or until death in the UK.
@@ariainlondon The point here is, when people get their govn pensions. Anybody anywhere in the world can work however long they like, regardless of the legislations. In the UK, at what age will people be able to get their pension? Certainly not any time up to age 65**. **Edit: It seems this is going to go up even more.
@@iherng I can see why. Outlook for the UK is not so good compared to Malaysia. GDP growth in Malaysia is at least double compared to UK. Inflation is twice as high in the UK. Plus managing property that is a 13 hour flight away not ideal either. Good luck.
There are plenty of good deals in Malaysia and near where you stay compare to very far overseas. Why buy something that is so far away and hard to manage while you can get it near where you live for investment purpose? 🙂
@@iherngwhat's the fee charged by the agent to help manage the property? I am assuming it is almost next to impossible to look at the apartment, collect rent, pay bills, etc..etc when it's overseas.
Thanks for the video. Interesting that you note that multiple property ownership is uncommon in their culture. One thing that bugs me about foreign property investment is the concept of the absentee landlord. In example, there are many condominium units in our country that are currently vacant, left to a property agent, due to foreign investments. Will foreign ownership increase neglect to take care of a particular town or city as "home?" This is perhaps one of the reasons why Singapore is extremely strict on foreign investments, to retain an amount of wealth, and ownership, to the people who would take care of the country as their own. To give another example, we have many old townhouse stock that are in our old Malaysian cities passed down to kids and grandkids who no longer live in that city. Because of the need to own multiple properties and the refusal to let go of their older properties, we see some of these becoming abandoned with not much incentive to clean up or make good these properties. The spillover effect is that downtowns become increasingly desolate, and people who want to do something about it, cannot really, because ownership is out of town, and a lot of times uncontactable. Since you are considering to be a foreign investor, what are your thoughts on these and do you feel like it is an issue--or perhaps not at all?
@@iherng I think freehold or leasehold has no direct connection to landed or high rise. However it happens to be most high rise are leasehold as there are many flats in one building to manage. However if the land is freehold then maybe the flat owner could apply for the share-ownership of the freehold. They are landed houses leasehold too. However some leasehold has 999 years lease so it’s as good as freehold. Many people they own/buy the lease (all kind, residential/commercial etc) and make profit margin between the owner and the end users.
As a guidance, council tax varies a lot depending on the council itself - where it is located, its overheads etc. My London 1 bedroom flat is currently being charged at £170 per month so a similar 1 bedroom in Manchester may be charged for around £120 per month. Council tax is normally payable by the tenant, not the landlord and it is collected by the council on a monthly basis.
Council tax is paid by the tenants. Maintenance/service/ground rent paid by the landlord. If it is vacant, some councils allow you to apply for discount.
@@iherng Manchester population only half a millions and not much foreign investment except foreign students. Most of their parents bought the apartment for them already. Also think about exit strategy 😬unless u want to invest for your child so when u study in England there is a place for him to stay
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There are share ownership and help to buy scheme which propping up the new build property price. New build is around 30% more expensive then resale property. People pays for the 30% extra for various reason, such as location, government buying scheme or the smell of new paint. For investment purposes based on ROI and property price appreciation, resale properties are far more attractive. Local council have been reluctant to sign-off high rise apartment about 10 years ago, and recently local councils are starting to build abundantly high rise to cope with demand, thus high rise apartment price appreciation will be under pressure due to the amount of apartment available in the market. Please do reconsider before buying new build high rise apartment in UK. Advise from a Malaysian living in London for 20 years.
For the benefit of others, the UK home ownership schemes such as Shared Ownership of Help-to-Buy are not applicable to non UK residents.
All condominios are leasehold? Nop, that is wrong.There are freehold condominios (and there are landed leasehold properties as well). You can not compare a leasehold in Malaysia (public law), as those leasehold are private law. That means the landlord can decide about the conditions of the leasehold contract, what often leads to overpriced leases. What you must know about it:
- usually after 100 years the property goes back to the landlord with very few compensation (so you better keep the maintaince to a minimum as you will loose the investment anyway)
- the leasehold compensation payment usually is a floating rate and goes up with inflation and/or interest increase (so dont calculate with the actual lease, but with higher lease)
- If some parcelholder fail to pay the lease, the community is responsible for the bill!!!! (so expect beeing forced to pay extra from time to time)
So if I were to purchase the cheapest property here (£260k), I will need to fork out of pocket:
- Booking fee (assuming £500)
- 20% deposit (£52k)
- Legal fees (assuming £1k)
- Mortgage broker fees (assuming £500 and it includes valuation fee and mortgage documentation charges)
- Stamp Duty Land Tax for non UK resident (£250k x 2% +£10k x 7% = £5.7k)
- Other incidentals (£300)
Total = £60k or about RM 340k
The rest of the financing (80% of the property purchase price = £208k) will be covered by mortgage. Since the property is in Manchester, it is likely to be a foreign bank because I know that Maybank only finance London zone 1 to 3 only; CIMB does not offer Buy-to-Let (BTL) loan from their London Branch and other Malaysian banks simply don't have any permission in the UK.
So for my mortgage, 80% LTV (£208k), max tenure of 30 years (because I am under the age of 40), BTL mortgage rate of 7% pa = monthly mortgage instalment is £1,383. Sean said the expected rental from this property is £1,300 pcm. The expected rental is not enough to cover the mortgage instalment and I need to top up another £83 (about RM 500) every month just to service the mortgage. I am also aware that the net rental collection that I will get is less than £1,300 pcm because of the charges by the letting agent.
Conclusion: It is a tough call. If I were to follow my head, it is a no because it does not look like a sound investment. If I were to follow my heart, it is a yes because I simply want to become a UK property owner.
Same thoughts. And this is if the bank is willing to provide loan to foreigners. Usually it is extremely difficult to get a loan. I was told that I quadrant is having quite a headache due to the current crowd in sg is also having problem to get a loan. Prolly Edinburgh is where i would aim for in time to come for my yearly summer break. :)
Interesting observation in UK.
For the children of caucasion communities who are not well-off, majority of the children have to leave homes and find their own life when they turn 18. If the children want to be rich, they have to work and find their own wealth.
On the other hand, Asian communities may place importance on multi-generational living arrangements, where owning a property provides the space and stability necessary to accommodate extended family members. They also view home-ownership as a wealth building, symbol of stability and success, as well as long-term investment potential.
For less than 300k Sterling, property that returns at least 1000 plus Sterling per month sounds like a real good deal.
That's what I thought too. So this weekend I'm gonna check and list out ALL the possible hidden costs around the deal.
@@iherng don't forget the maintenance, agent fee (if you are not self manage, aka 7-10% of your monthly rental + VAT), also GBP exchange rate is consider pretty high at the moment. Also stamp duty is higher for buy to let property as well as the mortgate, though you can opt for interests only mortgage. Another thing the repairing cost is shooting high sky at the moment, fixing a bathroom tap will cost 20 quid for the item, but 100+ for the labour.
though, this is not to scared ppl away, but is good to know most things before the decision. but I would say in hotspot areas, the occupied rate is close to 99%, so easy to rent out...
I just viewed a property last weekend in London. Talked to the agent and she said the renting market is mental. You literally need to bid for the flat!
However there are so many reduced priced property stocks in the past two months!
As advised by Sean, it’s not a good deal price for sure if you just walk into a development sales gallery to buy a new build unit in Malaysia. In the UK, it’s the same. However if Sean can get a very lucrative discount from the developer/agent then it’s another story 😊
Exactly!! I'm making another video about this as we speak hehehe;)
@@iherng thanks for the reply and sharing 😊
Looking forward to your next video about this.
Buy To Let in the UK? Unless you have a truckload of money then I would strongly advise against it. The 6% return on capital claimed by the developers is just sales hype. There are lots of hidden costs and if you have to borrow money to buy your property you'll be in deep deep shit if there is hike on your mortgage interest. However, if £300K is just pocket money to you then yes I would be tempted to buy one of those newly-built flats in Manchester as a second home or to accommodate friends and relatives when they visit the Manchester. The bottom line is DO NOT rely on your rental income to repay your mortgage! The UK Law is heavily in favor of your tenant so it is imperative that you secure a good tenant and demand the maximum deposit allowed (currently 5 weeks rent). Some Landlord asks for 1 year's rent in advance (there is no legal limit for rent advance) but you may find it difficult to rent your property. If your tenant defaults on his/her rent you will have to wait for two months or 8 weeks before you can issue a section 8 to evict him and he will have to leave within 14 days but there is no guarantee that he would. You will then have to get the Bailiffs to force him out. The process can get very messy. We rent out two properties and we're in the process of selling up because the trouble you get from bad tenants is just not worth it.
European are wellfare/pension oriented. Citizens no need to worry about theyr retirement arrangements. That's why they do not need to buy many investment properties.
Retirement age ranges from 62 to 67 at present. Most of their governments are in very heavy debt. France just raised the retirement age. Who knows what's coming for those that will rely solely on pensions.
@@kenlee1416 The UK has no retirement age. The previous statutory retirement age of 65 has been abolished in 2011 (12 years ago). One can work forever or until death in the UK.
@@ariainlondon The point here is, when people get their govn pensions. Anybody anywhere in the world can work however long they like, regardless of the legislations. In the UK, at what age will people be able to get their pension? Certainly not any time up to age 65**.
**Edit: It seems this is going to go up even more.
@@kenlee1416 In the UK, this depends on each individual pension scheme providers.
Looks like the location you choose has a lot of potential. I wish you luck. You deserve it.
Sean the international investor :)
I'm still trying to make the downpayment work. Debating between deals in Malaysia versus a hefty apartment in Manchester.
@@iherng I can see why. Outlook for the UK is not so good compared to Malaysia. GDP growth in Malaysia is at least double compared to UK. Inflation is twice as high in the UK. Plus managing property that is a 13 hour flight away not ideal either. Good luck.
There are plenty of good deals in Malaysia and near where you stay compare to very far overseas. Why buy something that is so far away and hard to manage while you can get it near where you live for investment purpose? 🙂
Sean, Can non uk resident get a BTL mortgage with interest only payment? This would increase cashflow tremendously
Yupe. Qiuyu's team has done that for their customers successfully all these while.
Great suggestion!!
@@iherng Thank you! can you give me contact details for Qiuyu? Interested to get more information.
@@iherng Customers with SGD income or MYR income?
Cool. Nice to see you’re venturing oversea and showcasing your investment.
No no no. Considering only hahaha. Still debating on the downpayment!!
Thanks for watching:)
@@iherngwhat's the fee charged by the agent to help manage the property? I am assuming it is almost next to impossible to look at the apartment, collect rent, pay bills, etc..etc when it's overseas.
Thanks for the video. Interesting that you note that multiple property ownership is uncommon in their culture.
One thing that bugs me about foreign property investment is the concept of the absentee landlord. In example, there are many condominium units in our country that are currently vacant, left to a property agent, due to foreign investments. Will foreign ownership increase neglect to take care of a particular town or city as "home?" This is perhaps one of the reasons why Singapore is extremely strict on foreign investments, to retain an amount of wealth, and ownership, to the people who would take care of the country as their own.
To give another example, we have many old townhouse stock that are in our old Malaysian cities passed down to kids and grandkids who no longer live in that city. Because of the need to own multiple properties and the refusal to let go of their older properties, we see some of these becoming abandoned with not much incentive to clean up or make good these properties. The spillover effect is that downtowns become increasingly desolate, and people who want to do something about it, cannot really, because ownership is out of town, and a lot of times uncontactable.
Since you are considering to be a foreign investor, what are your thoughts on these and do you feel like it is an issue--or perhaps not at all?
Does it mean uk market is better than Malaysia market ?
Bila watch collection journey video Sean? 😊😊
0:20 why Sean has this idea of all UK landed properties are freehold and high rise are leasehold? Who gave Sean this advice?😅
The developer's team when I was there. I just found out that's just the norm because re-developments are very common in Manchester.
@@iherng I think freehold or leasehold has no direct connection to landed or high rise. However it happens to be most high rise are leasehold as there are many flats in one building to manage. However if the land is freehold then maybe the flat owner could apply for the share-ownership of the freehold.
They are landed houses leasehold too.
However some leasehold has 999 years lease so it’s as good as freehold.
Many people they own/buy the lease (all kind, residential/commercial etc) and make profit margin between the owner and the end users.
so windy, so cold, luckily not wet, at least this moment
Sean... why no show us some of the nice food in england?
the wind looks insane in UK
That’s why the windows built quality are extremely important!!
Thanks for watching:)
Awesome man....u sapu how many
Trying very hard to get one haha:)
As people say first time will be hard,when get going to second n next will be easy for u liao la.....cheer man
Should checkout Gay Village fosho fam
Well it was seriously an intense trip for the team. We just went to several sites in one day for the entire week.
Is the council tax expensive?
I’ll be getting those queries sorted out in this coming weekend:)
As a guidance, council tax varies a lot depending on the council itself - where it is located, its overheads etc. My London 1 bedroom flat is currently being charged at £170 per month so a similar 1 bedroom in Manchester may be charged for around £120 per month. Council tax is normally payable by the tenant, not the landlord and it is collected by the council on a monthly basis.
Council tax is paid by the tenants.
Maintenance/service/ground rent paid by the landlord. If it is vacant, some councils allow you to apply for discount.
Too late to the party. Really.
Invest in London better.
Much lower roi
Also much higher entry price. So it really depends on your budget and objective.
My budget not as high unfortunately hahaha.
@@iherng Manchester population only half a millions and not much foreign investment except foreign students. Most of their parents bought the apartment for them already. Also think about exit strategy 😬unless u want to invest for your child so when u study in England there is a place for him to stay
pls don't buy near Old Toilet, it stinks
Hahaha. No lah.
We are targeting zone 1 area;)