Ever wondered if you should consider buying a property in the UK? Here are reasons why it could be great…
The UK has, for some time, enjoyed a reputation as a melting pot of different nationalities, with numerous international communities established across Great Britain.
Despite Brexit restrictions, people around Europe are still keen to seek a better life elsewhere, or simply looking to invest. Investing in property in the UK, is a sure way to invest money and make a profit.
If you’re looking to purchase property in the UK, to create a new home and investment, it’s best to speak to a international conveyancing solicitor. You’ll need all the help and guidance possible to make the transition and move smooth for you and your family.
So, why should Hungarians consider the move to the UK? Let’s delve into detail…
One such community is that of people from Hungary. In 2020, it was estimated that there were around 220,000 Hungarian nationals resident in the UK.
A landlocked country in Central Europe, Hungary is known for its mineral spas and its medieval and neoclassic architecture. Its capital, Budapest, which is bisected by the Danube River, is home to 1.756 million people and is a popular destination for tourists.
In parts of rural Hungary, a home can be bought for as little as £10,000 and, in fact, the home ownership rate in Hungary tends to swing between 85% and 92% so why then would a Hungarian person choose to buy property in the UK?
In the UK, particularly in large cities like London, employment is widely available, even for those without any formal qualifications.
While employment levels in cities like Budapest are fairly strong, the decline in agriculture in Hungary means that many people in rural areas struggle to find work. Of course, if they don’t have work, they are not able to buy property.
As with other nationalities, many Hungarian people are limited to low paying work. When a Hungarian person is working in his or her home country, they will be subject to a flat income tax rate of 15%, regardless of how much – or how little – they are earning.
In the UK, on the other hand, income tax is not charged on salaries on or below £12,570. For a Hungarian person living in the UK, this means that they get to keep more of their salary and are, therefore, in a better position to buy property.
In some areas of the UK, property can be bought fairly cheaply. For example, in Middlesborough, the average price of a property is just £54,978.
A significantly high number of pupils leave school early in Hungary, often without any qualifications. For those who do finish school , who wish to go onto university, this is not always possible as Hungarian universities charge up to £5000 per year in tuition fees.
As well as UK education being superior to that of Hungary, fees are usually not charged. For this reason, many Hungarian people choose to relocate to the UK for their children’s education stand a higher chance of being accepted into their chosen school, within their catchment area if they own property.
In some instances, a Hungarian national may qualify to apply for the UK Help To Buy scheme. This is a government initiative open to first time buyers which offers an equity loan of 20%.
This helps UK homebuyers to get onto the property ladder as they need only to raise a 5% deposit and make payments on a 75% mortgage. For Hungarian people on a low income, this offers the opportunity to own their own home, something which may not be possible for them in Hungary.
Another UK government scheme which may be open to some Hungarian nationals is that of Shared Ownership. Under this scheme, people on low incomes are able to take that first step onto the property ladder by purchasing part of a property and then paying rent on the rest.
As the homeowner’s finances grow, they are able to purchase more chunks of the property. In order to qualify for this scheme, applicants must hold at least £4000 in savings, have a household income of less than £80,000 and must be unable to purchase a home in the traditional way.
For Hungarian people living in the UK, this scheme offers a unique opportunity for home ownership which may otherwise be prohibitive due to their income.
The UK has almost always enjoyed a healthy housing market and despite the pandemic, the various political events of recent times, experts forecast a further rise in house prices of around 21% in the next five years. Which means that UK property remains a solid investment for buyers.
The UK population continues to rise rapidly. In recent years, we’ve seen a trend in people, particularly young professionals, choosing to rent long term rather than purchasing property.
For those looking to buy UK property right now, this presents a great opportunity to secure rental income for the foreseeable future.
While owning a property in the UK does not guarantee citizenship, it can help. When a person applies for permanent residency in the UK, the government will look at a number of factors including employment, finances and the person’s living situation.
There are many stringent rules regarding property in the UK and these are designed to protect buyers from purchasing property which is unsafe or not fit for purpose.
Unfortunately, property in Hungary is not subject to the same kinds of rigid rules. This means that often, buyers will purchase property, which is old, structurally unsafe and sometimes even, still affected by bomb damage.
In 2022, Hungary continues to experience political unrest with attacks on healthcare and inclusivity. This kind of unrest means a constant sense of unease for residents, including homeowners.
By contrast, although there is always political wrangling in the UK, it does not experience the drastic highs and lows which can adversely affect its residents on a regular basis.
On the surface, Hungary appears to be a good place to buy property, with prices remaining extremely low in some parts of the country. Hungary also enjoys a low cost of living compared to many countries within Europe.
Unfortunately, while there are benefits to life and property ownership in the country, there are also a number of disadvantages including political unrest, substandard housing and a lack of inclusivity for residents.
The UK, on the other hand, has always enjoyed a strong housing market and, despite people in the larger cities struggling to get onto the housing ladder, home ownership in the UK is holding steady at around 65% of households.
Schemes such as Help to Buy and Shared Ownership mean that more and more UK residents have a chance to own their own home – in many cases, brand new, modern homes which makes the market extremely attractive to Hungarian buyers.
Standard of living factors also come into play with the UK offering access to fairly paid employment and high-quality education. Finally, the growing rental market in the UK means that purchasing property here can be a great investment for either a passive income or for retirement.
Please be advised that this article is for general informational purposes only, and should not be used as a substitute for advice from a trained property professional. Be sure to consult a property professional or solicitor if you’re seeking advice about buying a property in the UK. We are not liable for risks or issues associated with using or acting upon the information on this site.
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