Hi,
I can see that a lot of people on this site have interest in investing in the Us but I was wondering if there is a similar appetite for investing in the UK? and if not if its just the deals arent as attractive, or any other reason?
Thanks
Hi Spy
Yes the appetite for the UK is growing by the day thanks to the strong Aus $.
I am currently here in the UK sourcing deals in both the UK and France for my investor clients.
We mainly specialise in repossessions or BMV for our clients who want the UK and leaseback properties for France.
Big difference is we can finance our Aussie clients into both Countries upto 80% lvr which is considerbly more than you do so in the USA.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I think investing in the USA can be alot cheaper, especially with the strong AUD currency in comparison to the USD.
Properties in the UK, however, may be a little pricier. I'm curious what other's thoughts are on this as well though
Hi Matt
Sorry have to disagree.
AUS / GBP pair is as strong as it has been for years.
Prices in the UK are as cheap as the USA without the need to spend $$$ on renovation.
Property management is a Profession like Australia.
You can finance a deal in the UK with a interest rate circa 4-5%
Conveyance process is the same as most States in Australia.
No Stamp Duty upto 125K pounds.
Solid built homes.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Richard,
What do you make of some of the other aspects of investing in the UK that are being touted on this forum as considerable risks in the usa. eg. types of neighbourhoods (ghettos) , empty estates, tenant damage, theft, vacancy rates. Is it as prevalent?
From reading your posts I know you're involved in the market over there (and in france) so you're obviously happy with it. But it would be interesting to hear your views of this side of the equation.
Andrew
itsandrew
Go as far as you can see and you will see further.
Hi Andrew
Oh dont get me wrong there are issues in investing in parts of the UK (Not sure i would be the first one to buy in parts of Oldham or Barnsley) but in the main from my experience the UK has a very similar property system to here in Australia.
In every large City there are areas to avoid and the UK is no different.
Sure not every Tenant is perfect and theft and damage can occur but again you can insure against such as you can here.
Mortgage Lenders and mortgage insurers have areas they just will not lend in exactly as here in Australia.
The big difference i see is that whilst the UK economy has struggled like a lot of Europe prices are coming off a very low base and lenders are actually lending. Many owners have negative equity and accept the fact that they will be living in the same property for years to come or have seen good growth in the past and price their properties accordingly.
Unlike many parts of the US all loans are Recourse Loans so if you decide to up and walk you need to expect that the Bank will come looking for you.
France is a different market totally. The Country itself has more tourists per year than any other Country in the world.
The property i purchased was a Leaseback property so guaranteed indexed linked rent for the next 9 years and being a Foreign National got full refund of my VAT (Our equivalent of GST) off the purchase price. Property gearing was 100% of the net GST amount at a fixed rate of 4.25% so cash flow positive from Day 1.
In my opinion investors need to conduct their DD wherever they purchase and that includes from Darlington to Darmouth or from Auchenflower to Ascot Park.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Well done on your French property. It's interesting to see a different angle given all the talk on OS investing is about USA.
Were you specifically targetting France or broader EU as an investing option? I find it hard enough to keep abreast of parts of the Aussie market let alone foreign non english speaking markets.
Andrew
itsandrew
Go as far as you can see and you will see further.
Hi Andrew
Coming from the UK i already had a property there and was seeking to buy in Europe somewhere we could use as a holiday home when we are there as well as a good long term investment as a hedge against the AUS.
Prices in the UK / Europe are so ridiculously cheap at the moment but the tide will turn and having an income in both GB Pounds and Euros suits me when i go abroad.
Other attraction was the 100% gearing in France.
Been a few years since i have been financing the US market but we never got anywhere near 100% for a FN.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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