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Hi Chris,
I am an Australian based in the UK and investing in UK properties. My strategy is currently flipping or in Steve’s mantra adding value. Properties values vary hugely across this small densely populated country the size of Victoria. In Wales properties are available from £30k and renovations costs for example to turn this into spick and span would be around £20/30k and then flip for £80/100k. Rental returns are in the region of 8/10% net. UK residential is similar to Australian commercial where the tenant assumes all the costs of the property. Finance is available at 70% LTV. Money laundering rules apply and you have to show the source of funds and that can be from Australia. The secondary finance market is plentiful with costs in the region of 1% per month. JV’s are available and that can mean no money down and split the returns. Multiple occupancy (HMO) is also different to Australia although I have a mate in Melbourne who operates something similar. There are some 300,000 shortages of houses and some 1.2m bedroom wanted to meet the demand. As such there are government and council-based schemes to assist in the conversion of commercial to residential to help meet this huge demand. The conservative government has restricted and it will soon be eliminated that interest costs cannot be offset against income rent for individuals for normal house rentals but these rules do not apply for HMO and for services accommodation and also do not apply to property purchased via a Limited company. BTW. Company tax is 19% being reduced to 17% next year. Hope that helps.
BruceThere is a financial cost and as well the opportunity cost of not attending the course that will change your investment outlook for the remainder of your property investment life.
