DOING business in the UK is very much like doing business in Ireland. The legal processes are the same and professional advice is generally competent and advisers trustworthy. This is in contrast to carrying out property transactions in the Continent, for example, where there are language barriers to start with, different legal systems and a "solicitor" is someone up the street.
However, tax structures in the UK, although being similar to our own in approach, vary significantly in detail and I would strongly recommend anyone considering investing there to retain a specialist tax adviser to avoid falling into some pot holes and to take advantage of the good opportunities for tax planning.
Words of caution
FIRST: the UK is a big place. For example, Manchester and its suburbs alone is bigger than Dublin. There is a real danger that investors can be misled into thinking that they know about property investment in a given UK city, be it Manchester, London, Birmingham or Leeds. Due to its size (52 million people) it is fair to say that no one knows all the UK markets/sub-markets. If the skill of making money out of property is knowing your markets, then it is vitally important for the Irish investor to get to know a local market very well (and that takes time) or to employ a person who knows that particular market. Don't think that you can fly into London, buy a bargain and take a flight home that evening. It doesn't happen that way.
Second: in my experience, every property market and sub-market is a village. There are "people in the know" and good deals tend to come through them. Only the properties that do not get placed by this inner circle reach the open market. If those properties do not get taken up by contacts of this inner circle, then they will go to the local scouts for national or international buyers who are represented in that market. I strongly advise investors to be wary of that property whose photograph and particulars come unsolicited on to your desk or breakfast table. Usually, there is a reason why the locals have rejected it.
Third: be cautious about over-rented properties. Even if it is showing a yield of 10 per cent and is in a good location, it may be because the rental value is £10 per square foot and it is let at £20 per square foot with only four years to run on the lease. However if the rent is £18 per square foot and the open market value is £14 per square foot and is let to, say, one of the big banks for a further 20 years without breaks, then it is worth following up.
Finally, I would repeat again that specialist advice is necessary when acquiring any substantial commercial property. Apart from the market related issues, it is very important to check out the structures and lease terms, the town planning and regulatory issues. This advice is not just necessary to protect you from the vendor but also to ensure that the property is capable of being sold on the day you decide to take your profit.
