Hi there all,
Head on the block here, here goes anyway.
After 2 extensive weeks research in Manchester UK, I have found very many deals that fit my investing criteria.
Is it kept quiet here on the forum by investors not disclosing where there are areas that have very good opportunities. Well for all those that wonder where to look I am suggesting to look in the Manchester region UK.
Does anybody here currently purchase in this area?
What have I found mmm Well here are some nuts and bolts.
Purchase prices 18k-40k pounds
rents 60-160 pounds per week
No stamp duty
tenant pays rates
CG approx 20%
population 4.2 million
strong demand for rental property
conveyancing 700 pounds
mortgage interest rates 3.8% IO 5 yr, tied for 3
building insurance 200 pounds
2 storey, 2/3 br terraces
competitive property management rates varies from 9-15% of rent,
freehold and leaseholdI am not concerned about borders and boundaries or where the property is located. Borders and reasons for not pursuing are also found and made up inside everyones head. How many times have you heard people give reasons for not doing things, far more than than just going and doing it.. I am making a business decision not an emotional decision.
So there you have it, in my eyes, an area of opportunity for everyone here that is building a business through the acquiring of positive cashflow property. And from my initial investigations there are plenty to go around!!!
What are the reasons that hold people back? May I suggest the 1st reason – their comfort zone.
I also can’t wait to here all the negative people tell why they couldn’t do some investing in UK or any where else outside their comfort zone.
So go for it, give me heaps
Regards
Afloat – head above water
ps – if you would like to find out more of my investigations in UK, drop us mail.
Now we’re talking!
The UK is a fantastic place for $+ve deals. But do be very careful about the area you invest in. Some areas are quite dreadful, with 0 prospects of CG and difficult to let.
The UK is where I will be investing. (Missus already has some over there
)Comfort zone your saying .So you are implying that purchasing an investment property on the other side of the world is out of Investors comfort zone.NAAAA
Interesting
Why don’t you set up a Buyers Agency up over there?
I have lived in the Uk and from what I can remember it is a long very complicated process in buying a property (not to mention it is 12000km away) over there.
These prices must be leasehold to be that cheap too? Still sounds interesting though if you can find a good area in Manchester, which is where all the police car chase shows on TV come from?
Just look at the Oasis band, imagine having them as tenants? Scary.I don’t think it’s a matter of investors keeping quiet about it, more that most forumites are Aussies and there are only so many hours in the day to do research.
On another point though, from what I saw when there, high LVR finance deals are a lot more common that here.
Let us know how you get on.
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]>>I have lived in the Uk and from what I can remember it is a long very complicated process in buying a property (not to mention it is 12000km away) over there.<<
Geronimo, are you refering to the chain setup over there? I understand this can complicate things, but I have some very close friends who are living and investing there at the moment(Basingstoke area)…they have mentioned this, but it hasn’t held them up too much. They have done exceptionally well.
Anyway, here is an interesting site I am considering subscribing to which attempts tp locate $+ve in all areas of the UK:
http://www.propertyhotspots.net/index.php…and a UK forum, with thanks to Aceyducey:
http://www.housemouseuk.com/modules.php?name=Forums&file=indexHere is another link for those who may be interested,
Fish 4 Homes, a property search site in the UK,http://fish4.co.uk/homes/index.jsp
Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VictoriaPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
The properties are both freehold and leasehold. Lease hold is is 999 years, which are treated equally to freehold. This is important as the lenders have no problems with free or lease.
Comfort zones on the other side of this planet absolutely scare many people, especially in property. I believe that they are just not prepared to put in the time and effort to achieve. How many people do you know that spend more time looking at a car to buy and when it comes to investing they just say it’s too hard.
As far as assuming it is a long and complicated process to purchase in UK, using my limited time and resources I have been able to put most players in place in the 2 weeks I had there. I went very open minded and found it very straight forward to purchase property.
As far as setting up a dealers agent here or there, well yes I could do that and make a cupla bucks to save others time, it is still very straight forward for any Australian to do what I am achieving in the mother land.
Doesn’t all large cities have problem areas and tenants. Put the right property manager in place, research the area and minimize the risks.
The other side of things now is that I am working from 6pm to midnite to work in with the UK, bummer, even less sleep than before.
Regards
Afloat – head above water
Hi
Are there any rules about ownership etc? Do you have to have a UK address or is it OK to be Australian and buy outright in UK?
Hi Misty,
As an Australian citizen/resident you can purchase property in the UK.
You can also purchase/refinance property as an individual or through your company/trust.
If you purchase through your company/trust it takes some more time to refinance properties as against in your own name.Regards
Afloat – head above water
Quote:Originally posted by wayneL:>>
Geronimo, are you refering to the chain setup over there? I understand this can complicate things, but I have some very close friends who are living and investing there at the moment(Basingstoke area)…they have mentioned this, but it hasn’t held them up too much. They have done exceptionally well.Hi Wayne
Yes I was referring to their chain gang/setup. Just had a friend who waited 8 months and then the deal fell over. I guess it depends on how many in the chain.
As for it being relatively easy for Aussies to invest in the UK, most importantly, what is the max LVR an overseas investor can borrow?
With the exchange rate, you wouldn’t want to be putting up too much cash?
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Hi Brendon,
My home work found this to be the best for my position.
Fund the 1st property from Australia. This then shows that the first property in UK has no finance on it locally.
From there I seek a mortgage to 80% of the new valuation, after I have done some refurb, curtains, carpets and have a tenant in place so the property shows an income stream.
The financiers we will be using are looking at 3 areas we must meet, 1/ security 2/ willingness 3/ ability on our loans. And to boot the interest rates we are looking at are currently 3.8% IO fixed 5 yr & tied for 3, pretty damm inviting I must say.The 80% that I am borrowing against the first property is = to the purchase price of the second property. Which when revalued will allow me to make another aqusition similiar to the first.
All the property that I’m targeting are 2st, 2 bed terraces, so they all are very similiar in size and layout.
The properties that I am purchasing are from distressed sellers, therefore I am helping them out of a squeeze for a reduced sale price. We both win actually, they clear the debt and I get a property at a reduced price.
I have had independent surveyors check out the properties and their report satisfies the banks criteria. In other words, there have been no artificial inflation of prices.As far as exchange rates go, it is only the properties that I initially fund from Aust that are effected then as I remitt rental funds back home, bring it back to a sterling account locally and gauge the best rates locally before turning them into AUD’s $.
Best regards
Afloat – head above water
>>Just had a friend who waited 8 months and then the deal fell over. I guess it depends on how many in the chain.<<
That would be exceedingly frustrating! Especially if you really wanted/needed that house!
I notice a few of the ads state quite clearly “no upward chain”. These would be a better bet for the investor…providing the house is suitable.
I left the UK in 1992 having come from the South East of England where I stil own over 20 properties.
In the early 1990’s you could purchase a property in Manchester for 18000 pounds and from the 1st post it appears prices have not moved at all.If you want cheap then try parts of Rochedale or Doncaster. Even Hartlepool and the like will give you good +CF but CG i am not sure.
In the SE of England you are still achieving steady 10-15% PA.
Whatever anyone tells you purchasing in the UK is not that hard. You have an exchange of contracts period and a settlement period similar to certain States in OZ.
Financing deals is certainly a lot easier with many lenders offering 100% loans for both purchase and investment and inetrest rates are a lot lower than ours with a massive choice of lenders.
My advise to anyone seeking the UK as an option would be to look at the SE of England where you are certainly paying a higher price (the average house i own in Bournemouth around 90 miles SE of London is valued at around 260,000 Pounds) but wil get good rental return and CG. Avoid Leasehold with high managment charges. There are still many properties with only the balance of a a 99 year lease to go (maybe 70 years left) which makes onsale down the track harder.
Anyway happy investing and watch that exchange rate.
Cheers Richard
richard at fhog.com.au
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
Me again,
With regard to leasehold, make sure you target property with a 999 year lease. Most property I have pencilled in are both lease and freehold. The leasehold property has on average 900 years to run. The is a nominal 2 pounds payable per year on these lease hold property.
Property purchase prices.
I will be able to implement my refinance mechanism on property to acquire as many as as I like with the purchase price topping around 45k pound (approx 113k AUD).
If I was to buy a property for say 260k pounds (approx 650k AUD) my number of property available to purchase would be severely limited for my situation. Everyone is different.Now the Manchester region could be likened to the Sydney/Melbourne/Brisbane basins. Large areas with very differing population makeups and desirability areas. If you buy in a Jewish area, prices are well maintained whereas an area made up of Pakistanis is a few rungs down the ladder.
I am not saying anything untoward about differing races/religion etc, yet you must make an informed decision based on some of this previous information.Regions throughout Manchester are going through regeneration, which takes place over a 15 year period. An area which has passed through government regeneration is Salford Quays. http://www.salford.gov.uk.
A current area under 15 year regeneration is Nelson http://www.burnley.gov.uk.Must dash
Regards
Afloat – head above water
Excellent Post Afloat
Looks like you have throughly done your research, and certainly something to put in the backburner for the next European trip.
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Hi Geronimo,
As you mentioned earlier about setting up a buyers agency, well we have spent many hours putting some thing like that into place. So much can be achieved in a short space of time if you put your head to it
Henry, thanks for the support, knocking down those barriers is very satisfying.
Regards
Afloat – head above water
Well done Afloat,
Good on you for venturing abroad. Seems like your post just created an instant demand for properties in Manchester – now watch the CG.
I once purchased a 2bdrm flat in East London for GBP70k in 1989. 100% finance from a building society and rented for GBP600pcm. Prices went down before they went up again but it was pretty much self financing anyway.
Good luck
JeffCan someone tell me why investing in UK is so good when UK are heavily investing in NZ?????
Tim
Anyway, can someone enlighten me what is meant by the words ‘chain set up’ ?
Ha that got something to do with the title of the property ?
Pisces
What data and investment strategy was used to determine 20 percent “capital growth” – which I assume is annual growth?
How many properties have you acquired in Manchester? and how many have demonstrated an average CG of 20 percent per annum over the past 3 years?
A couple of points of interest re: UK residential market:
Nationally, the typical rates of return on the cash purchase of a buy-to-let investment, including both rental yield and capital appreciation and taking void periods into account, range between 6 and 10 percent.
Foreign investors interested in the UK residential market should follow these principles:
Borrowings should not exceed 70 percent of the property’s value; rents should equal or exceed 150 percent of mortgage payments to allow for maintenance and other costs; and a reserve equal to at least 2 month’s mortgage payment should be allocated to cover any voids.
— Michael
P.S. are you promoting properties you have lined up to people on this forum?
)
You must be logged in to reply to this topic. If you don't have an account, you can register here.
