Australia is a top destination for people from the UK who want to move overseas, but many people who have made the move to Australia have invested in UK buy-to-let property, BuyAssociation.co.uk reported this month.
For some, UK property is insurance in case they should want to move back to the UK and have somewhere to live. For others, it is to provide an income source.
House prices in Australia have risen dramatically in recent years. Sydney was recently named the second least affordable housing market in the world below Hong Kong. House prices in the New South Wales city are 13 times higher than the average income. This makes investing in the British housing market more attractive to people living in Australia.
British people living overseas can find it difficult to obtain a buy-to-let mortgage because some lenders regard this as a high-risk situation. Lenders may ask for higher deposits or higher interest to offsets the risk.
People on high incomes who can afford a 30% deposit and who work for a multi-national corporation will probably find it easier to obtain a mortgage. People on low incomes or who are self-employed may find mortgages more expensive.
No matter what status ex-pats have, there are borrowing options. People intending to move abroad who want to invest in UK buy-to-let property should talk to a UK mortgage broker to discuss available commercial mortgages. Buy-to-let property can provide a regular income, even from the other side of the world.