Buying property in the UK is similar in several ways to buying property in Hong Kong, but there are some important differences you need to be aware of.
It is similar to buying property as a resident, but you will need to be aware of some additional taxes which may factor into your purchase.
There are no restrictions to buying UK property as an international investor, but you will need to secure residential status if you want to live in your property. Therefore it is easier to invest in the UK from Hong Kong than it is to become an expat, unless you are a British national overseas.
Property transactions in the UK are done through solicitors, and often estate agents or property investment companies act as the sellers for investment properties.
Much like in Hong Kong, prices are often negotiable, with the seller putting the asking price of a property slightly higher than what they expect to sell it for. Once a price is agreed upon, the buyer will complete a memorandum of sale.
The closest equivalent in Hong Kong would be completing a Provisional Agreement for Sale and Purchase or PASP.
With investment properties, you will normally need to pay a reservation fee or the first part of your payment plan at this stage.
Solicitors for both buyer and seller will exchange contracts at this point and you will pay a deposit on the property. Again, this is a good comparison for the Formal Agreement for Sale and Purchase.
There is normally a waiting period in between the exchanging of contracts and completion of the deal, just to make sure everything is above water and legal. Once it is all confirmed by both parties, the completion of the sale means the property is now yours once you pay the rest of the price, and it is yours to do with as you need.
If you are using a buy-to-let mortgage, this is when you will begin paying off the interest you accrue using rental income, and if you are buying UK property from Hong Kong, this will be when your property investment journey really begins.
