An Intro To Remote Investing In The UK

Some of you may have heard of remote investing but are quite unsure how it works. In simple terms, remote investment is the act of investing in real estate even though you don’t live in the same place where the property is located. You may think it’s crazy to buy a house somewhere far, far, away like in the heart of a mountain range or an overseas property. But, believe it or not, there is a good demand for these kinds of properties.

The key is finding a property and match it with a determined buyer, and you’re going to hit the jackpot.
Take for example, Clare and David Mangon. They are formerly of Thames, Oxfordshire, but they were willing to shed £200,000 for a barn-like house made of ancient stone- called Ellers – in a really, really far off portion of northern Yorkshire Dales where winters are harsh and the company of other people is very hard to come by as houses are located long distances away from each other.

You might wonder why the Mangons were willing to stay in this area. But according to Clare, despite the obvious weaknesses of the location, they immediately “fell in love with the place” when they laid eyes on it for the first time.

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Remote investing is slowly gaining popularity in the UK

For a growing number of people who are getting worn down by the daily grind of urban life, there is a certain appeal for old, remote properties along with the simplicity that comes in more rural areas. As an investor, realising this growing trend can be very rewarding.

More and more people have gotten into remote investment in the past few years, and this is gaining popularity not only with UK residents, but also with a lot of people living overseas.

Castle Estates, a residential letting agency in Glasgow, says that more than 67.6 per cent or more than two-thirds of the landlords in their listing are remote investors.

What’s more astonishing in this revelation is that out of these remote landlords, 15.3 per cent of them live overseas.

The agency’s head shared that these remote investors live in Australia, Thailand, Switzerland, South Africa, and Canada.

How To Keep Track Of Your Remote Property Investments

Remote investing can be a very profitable venture when done right. However, not all investors are willing to invest remotely because they are unsure on how to keep track of the property. However, this concern can be addressed with these simple strategies:

Self-Managing Vs Hiring A Lettings Agent

Self-managing remote investment properties is, probably, the most popular system used by remote investors.

When you “self-manage” a property, by the way, this means you’re going to: oversee the screening of potential tenants, hiring of local handymen to take care of maintenance, and management of the entire property all on your own, even if it’s located hundreds of miles away from your home.

Believe it or not, some investors drive, take the train, or even ride an airplane just to check on their investments and their tenants, because it’s a cheaper alternative to hiring a third party or leasing agents.

As I’ve said earlier, hiring a lettings agent could take a chunk out of your potential profits, but the upside is you don’t have to make the constant trip to the other side of the country just to evict a tenant or make sure that the house is still in a good condition. Another advantage of hiring a local lettings agent is that they can make sure that the handymen you hire aren’t ripping you off on the price of their services.

But before you rush into hiring third parties, know that many remote investors have been duped by bad letting agents over the years! One of the many horror stories being circled around is of a letting agent, who used the property entrusted to him into his own, personal love nest!

A close friend of mine, who also invests remotely, says that the total profit dictates whether he would go for self-management or hire a lettings agent.

If flying solo would lead to higher profits, then he would take the trip to the moon and back as often as he can, but if hiring a lettings agent would produce the same profits, then he has no problem with a stranger looking after his investment.

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Finding property near family or close friends can make remote investing much more convenient

Keep It Close To Family

I’ve already discussed that remote investment requires the constant trip out of town. Not only will this cost you energy and time, but also money.

A strategy I’ve picked up along the way is to find a property near family relatives or close friends, so that when you’re going to make the trip out of town, you can stay over at their place during your visit.

You’ve hit 2 birds with one stone, essentially, since you were able to monitor the status of your investment property, while seeing your families and friends when business is done.

Look Out For New Technology

Mobile communication apps, like Instant Messaging, Skype, or WeChat, has made it easier for people to reach one another, these innovations have also helped remote investors connect with their buyers, tenants, and handymen from anywhere in the country within minutes.

One company called, MaxMon, also offers a new application for Android phones that gives owners daily reports on the status of their remote property investment. It also promises to alert the owner of intruders and critical environmental changes that could cause huge damage on your property.