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Hi,
The UK does offer a lot of opportunity for cashflow investing and above average CG in the long term, Areas in the North of England such as Hull, Grimsby and Doncaster still offer good yield and value for money, You can pick up a 2/3 bed terrace house that rents for 400 pounds per month for about 60k, Scotland also has some great yields if you look hard enough, Areas around Glasgow are an investor hotspot at the moment.
London is extremely competitive at the moment, I have a contact over there who has bought in area’s such as Pimlico and Bayswater over the last ten years and is now a fulltime landlord. He has been saying that he cant find anything in central london for sale!! and he is in the market all day everyday, as soon as something comes on the market there is a list of people making cash offers on the spot!! 1 bed flats are going for about half a million pound in these areas!!!!
Finance for non-residents is pretty easy to arrange but you will only get 70% LTV and also slightly higher rates, i think the best is at about 5% at the moment. I know a really good broker in Glasgow if anybody needs a contact.
Good luck!!Hi Paul,
I worked really hard for two years before i came to Aus(yes im a pom, and dont mention the cricket!!!) working two jobs, buying and selling second hand cars and other bits and bobs. Managed to save 50k and bought a unit in perth 2 years ago for 180k, borrowing 140k, I then continued to work 3 jobs and save enough for IP back in the UK which gives me $600 pcm positive cashflow, i then bought a further 3 IP’s in the last six months using cashback offers(100% finance deals) also in the UK. The cashflow from my IP’s now cover my mortgage repayment,
so i can now save most of my working income to buy more property.
I think what some people need to understand is that even though the average house price in perth is 420k or so, that doesnt mean thats what you have to buy, There are still good deals to be had!! i saw a unit come on the market recently, 5 km from the CBD, needed some tlc but not anything major for 230k! If you get yourself in a strong position by working hard and making sacrifice then you can profit from oppurtunity, and i do feel embarrased to be a twentysomething when i hear such pathetic remarks like “its not fair, i cant do it, it was easier 20 years ago” If you keep saying and thinking that you will be 50 and still saying and thinking that.
Figure out what you need to do it, then put your head down and get on with it.
Anybody that has done well financally has done so because they went out and did things others were not prepared to do, its that simple, i think!!!
it can be done Peter, Dont give up!!!!Peter,
I am 22 and work in a warehouse for 35k per year, and guess what? i own 5 property’s!!
dont be such a wimp!!
I suggest you read some books by Robert Kiyosaki, And stop Winging!!!If anybody is considering Dubai, Check out this website http://www.worldwidefrontiers.com
Hi,
Try HSBC, they seem to be the most flexible when it comes to overseas investment funding.
They can also help with bank accounts etc.
Why Dubai? Are you looking at new build?Hi all,
I have invested in the UK over the last year or so, and it is a very attractive place to invest. But you must do your homework and spend some time over there, or havea trustworthy contact with local knowledge. As far as a 26k property goes, it will be tenanted by somebody on DSS, and you WILL NOT get finance for it, for decent yields and potential CG look at , Yorkshire, Durham, Lancashire and West Scotland( see my post called “Europe”), Southern England is at the end of a 5 year boom so i would wait couple of years. As i Said, Do your homework as there are many things that can trip you up!!!!!! feel free to PM me if you would like any more infoHi All,
On the finance side of things for the UK, Over there there is a great mortgage product for + CF investors called the Buy to Let Mortgage.
The Mortgage is given on the rentable value of the property rather than your own financial situation, most lenders must see that the Rent will cover 120% of the interest on your mortgage payment.
So there isnt pre-approval for these as you must find the property first and then have it surveyed, the lender will then decide if the property meets there criteria, Which does vary depending on your situation, As i am a non resident they required 140% of the interset to be covered by the rent, but if you find a good property then you should not have any troubles. Also the maximum LTV you will get is 89% but that is always changing.
For Belgium, We are still working through some things with our solicitor over there, and yes the buying costs can be Very high, But it seems the banks are willing to lend 100% LTV as long as you buy under market value.
The registration tax is 12.5% but if you buy what they call a “Small Property” then that is reduced to 6% in brussels, Studio and 1 bed flats from what i can gather but as I said we are still working through some things over there. But at this stage it seems like the buying costs will be 15% of the purchase price, which eats your profits a bit but the returns and the very small borrowing rates make up for it.
I will post any details that i find over the next few weeks.
Happy investingHi DP,
Be very very carefull with this type of investment, It is essential that you do your homework!!
Can you really predict what the market will be like by the time the apartment is complete, sure its hot now but how long will that last?
You and your husband need to sit down and really pull this thing apart before you proceed, Think about your end buyer and how much demand there will be for your apartment when it is complete.
Ill give you a quick example of what happened to a mate of mine last year:
bought at the height of a boom in hungary for 125k GBP, whilst the apartment was under construction the market dipped and by the time it was finished the max offer he got was 90,000!!!! ouch!!
You need to understand where the market is going.
Good luckHi marty,
I bought an IP just outside belfast last year and it has performed well, 3 bed terrace house(town house) for 39000 GBP on a 11% rental Yield. its now worth around 50,000 GBP.
Look at areas around belfast and you should find some good deals. A good website is http://www.rightmove.co.uk.
Andy.Thanks all, every little bit helps!!
Hi Gross,
I will be buying in the UK this year, I believe that i can claim a credit on the tax already paid in the UK( Profit minus costs),
is this correct? would anybody be willing to give me some advice on setting up a structure?
any help would be great!!!!What about the deductions? which country would i claim them in?
thanks for you input guys thats a great help,
andyThanks very much richard, greatly appreciated.
Thanks for your input guys,
Richard, i live in Perth WA! but am going to be buying IP’s over there this year.
would be great if your friend could help me out!hi all,
where can i find out more about this club? where, when, how often?thanks all,
i will also be looking into it next week, i will post anything i find of value if anybody is interested?hi zyleth,
nice in-laws!!!
If you are looking for quick CG then i would not be looking at sydney.
my advice to you is if you want to get into to the IP game then continue to rent while putting all possible cash from your income into positive cashflow property, if your goal is financial indepence a trip to europe thats going to set you back 40k will not really help things!!!
Travel europe in comfort when you achieve your financial goals!
all the best
