Making an investment in property in the UK could pay dividends, or more literally, rent payments which can help you to cover your expenses in your life or during retirement. When you invest in property in the UK you should understand the risks and concerns associated with doing so in order to better improve your return on your property.
The Currency Risks
If you don't live in the UK and the majority of expenses that you have are in a different currency than the Great British pound, then you will potentially be exposed to some currency risk when you buy UK property for an investment. Basically, you will receive rent payments in an amount in pounds that you will convert into your base home currency. When the pound goes down in value you may be stuck with lower amounts of money, though the opposite can also be true in a positive way. Understanding the currency risk that you are exposed to when you invest in UK property is important.
When you own property there is a risk that your tenants will not pay or that a long term lease will expose you to locked in amounts of income when the value of the property from a rental income view increases. To combat these risks it is good to receive a security deposit from your tenant of at least one month in addition to the last month of rent. You should also research your tenants and try to choose permanent residents of the UK who are less likely to leave the country after they rent out the space, without paying. Next, you should limit the length of time of the lease so you aren't exposed to locked in rental rates when inflation and rising incomes change the value of the rental unit.
Read more at Property investment UK.