Why I DON'T buy in SCOTLAND?! | Property investment UK

I have invested in many places within the UK, but I haven't yet invested up in Scotland! So in this video I will be explaining why I DON'T invest in Scotland! Have you invested in Scotland? If so how do you find it? Do you have any issues? It would be great to hear your experiences, let me know in the comments below!

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00:00 - Intro
00:44 - Stamp Duty
01:45 - Property Holds
02:45 - Gazumping Properties
04:16 - How is it different in Scotland?
05:12 - Home reports and surveys
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[victoredwards]

Jamie, I love the Scottish system. It’s far better than our own system of buying property. Well , everything is better in Scotland apart from the weather.

[MoonStarMatt]

In Scotland more and more people are now pulling out too. There doesnt seem to be anything that can be done about it, unless the missives have been concluded which is more often than not the day before the sale handover date! If missives have been concluded then whoever has pulled out can be sued for costs.
Spain has a much better system where once both parties have agreed to a sale the purchaser has to put down a reservation fee of €3000 euros. If the seller pulls out the buyer gets the £3000 back. If the purchaser pulls out then the buyer keeps the €3000. Once the contracts are formally accepted a total of 10% of transaction (includes the reservation fee) is payable by the purchaser. If the purchaser pulls out after that point they loose the full 10% plus an additional 10%. If the seller pulls out then they are required to return the 10% to the buyer. This can be done in Scotland as we put down £3000 to secure a property as the seller had been let down before. But it is not law like in Spain. If that system or similar was to be made law in the UK it would make a huge difference.

[neilmacdonald]

Been investing BTL's in Scotland for 15 years. Other than 4% stamp it's a much better system. Great when you're the buyer and you don't pay for surveys (home report) etc. That's about the 1% difference in stamp negated. Love your videos. Love fae Scotland 🏴󠁧󠁢󠁳󠁣󠁴󠁿

[compassestatesgroup]

great video!

I sell off-market portfolios in Scotland. Whilst the 4% tax may look bad, most people don't know that if you buy a portfolio of 6 or more properties, you are exempt from that tax! 😋

[jarmanhey]

Hey Jamie, massive fan of your content, just messaging as you missed out all the important stuff about BTL in Scotland as the Scottish government really do not like landlords.

In Scotland tenant’s have far more rights than in England and we do no have AST’s only a government made Contract. You are unable to get tenants to leave a property unless they meet one of a few criteria such as selling the property or moving in yourself. Tenants currently are not allowed to be evicted for any reason at all until March and could just not pay if they do not want to. There is a maximum 5% increase in rent per year and There will soon be rent pressure zones being brought in that will limit how much rent you can charge. HMO is for 3 people or more and holiday let’s have just had new rules brought in too. Stamp duty is much higher and over £325, 000 is 10% ( I Think) plus the additional stamp duty has just gone up to 6% on top of that.

Couple of other things I feel you got wrong (but everyone in Scotland will disagree with me as they love their system). The buying process up here is a nightmare, everything is offers over and helps to create an insane market where property regularly goes for 20% over (not easy to get a mortgage on and very difficult for a FTB).

I think it is crazy the buyer pays for the report about their own property (conflict of interest, plus limits supply as in England I could list for £100 easily up here it will be over a thousand). The bank will carry out their own valuation 99% of the time (I am a mortgage broker) so you are paying for 2 separate surveys basically. You can absolutely still pull out of a deal at any point up to when missives have been completed (a few days before sale).

Really would not be encouraging anyone to buy up here without really exploring all the rules and regulations.

[gmckayak]

I'm a property investor in Scotland. We have a fairly diverse range of properties here and the only difference being the 4%...That normally balances out though. Love the videos Jamie, I started watching you and now moved on to get training and a mentor. Keep them coming.

[gallojk]

Britains due diligence is similar to USA, with the buyer's responsibly to do their own inspection and surveys. I don't know if I would be interested in getting a seller's paid inspection report and not being able to be present while that inspection occured... Buyer beware!

[jamesbowie]

Quite happy that you don’t invest in my country, we have enough English living there already that raised the property prices🏴󠁧󠁢󠁳󠁣󠁴󠁿😊

[togiduck]

Am I right in saying if you have a holiday home there the council tax is increased by 10%, I went to look at some faults in Scotland, asked to see the sellers report. One of the flats had a dampness problem, told by the agent the seller had dealt with it. When I checked further the seller had only painted over the damp patches.

[Thereishope]

You do not own a leasehold property as you stated. The lease just gives you the legal right to live in the property for a specific number of years determined by the length of the lease.

[scottmacpherson_]

I’m from Scotland and started my property career last year. I’ll be moving to Leeds this summer to really kick it off and will (hopefully) attend your courses! Thanks for the info as always, Jamie 👍🏻

[MrGazburns]

Now that Scotland second home tax is now 6% it has all but killed BTL here

[jacekfellmann]

Great video. Im using knowlage from your videos to invest in Scotland already. Give me a shout if you need people for your Scotland team 😉

[thomasboyd]

Awesome. Excellent channel. Spot on. Well said.

[keithnicolson]

My heart initially sank reading your title as I hope to get our own first BTL in Scotland shortly. Glad I watched as it spurred me on!

[JetStreamJourney_YT]

FACTCHECK: It's not a "Battered Mars Bar" it's called a "Deep-fried Mars Bar" :-) Terrific video. Really clear and well-explained, plus entertaining.

[camcoolcam]

You got my attention there I've also just started investing in Scotland, where I live.

Cheers Jamie! ✌️🏴󠁧󠁢󠁳󠁣󠁴󠁿

[adm]

I've been considering Scotland. From initial checking on the system there, it seems that offers have to be formally submitted by a solicitor. Could anyone tell me if this is correct? If it is, does that mean simply making an offer costs money (solicitors charge)? I'd normally low ball offers just see whether I could find a bargain but that could get expensive if paying to do so (and presumably paying again to increase the offer if the initial one is refused). Also, I'm attracted by the relatively good prices I have seen online but I've heard that most places sell for considerably above the asking price. Is that true? How do I get an accurate idea of real selling prices?

[It_is_common_sense]

In Scotland people are paying often well over the asking price, this can be as much as £50k more. So buying in England in my experience is better value for money.

[gabbymcclymont]

Iv moved 36 times and lived in Scotland and England both systems can be a problem. Iv been Guzumped 2 times but iv been stuck with 2 large houses in Scotland, i do prefer the Scottish system, just never say you will buy it until your totaly sure, you can not pull out if sale agreed also selling in Scotland can be very quick 6 weeks.