Published on : 09 May 20192 min reading time
When we talk about investing in stone, we often think of buying near home – me first! This is the case when investment management is active, or semi-active. This requires knowledge, capital and also time when investing in this way. But what happens when the investment is totally passive? Should we favor proximity or, on the contrary, take advantage of a more buoyant climate, even if it is no longer necessary to search near home?
Some people do not have the time or prefer to focus on other topics. They then turn to passive investments. I have in mind the SCPI for example that allow investing in real estate, mainly in France. But why not widen the prism and consider investing overseas when looking for a more efficient passive return?
Why invest in England?
The French were the first foreign buyers in London in 2014. It must be said that London is close. Investing in the English capital is not like crossing the Atlantic to visit a property or solve problems with a recalcitrant tenant.
The context is particularly conducive to investing in England: experts estimate that 1 million new homes needed by 2020, or 250,000 homes per year.
The economic attractiveness of England is well established, leading to high housing needs. By 2060, the United Kingdom would be even the most populated territory in Europe with 80 million inhabitants!
London in particular is a city that attracts more and more workers to stay. With an average growth of 2.5% per year over the last 6 years, London is known for its dynamism and is the first financial center in the world with the famous “City”.
Why focus on this component?
In the current context, turning offices into housing is the most profitable real estate development operation in the UK. This contributes to the creation of new housing that the United Kingdom needs.
The government strongly supports the legislative activity by authorizing almost automatically the conversion of offices into apartments. The risks associated with construction are considerably reduced because the conversion makes it possible not to affect the structure of the developed goods. As part of a conversion, no social housing or additional tax is required.
Which neighborhood and which type of property to choose ?
Invest in European real estate