Hi all,
Have recently(3 hours ago!!!) returned from a very good trip to the UK mainly, but also went to mainland europe on the property hunt and thought i would share what i found.
If anyone is thinking of an alternative to the US for + CF then you might want to read on.
My first week was in Scotland where i found many many + CF properties in an area called Paisley in West scotland, just outside of Glasgow (10 minutes on the train). This little town is being regarged as the commuter town for young proffesionals working in Glasgow, Thus providing very strong rental demand.
I Purchased two properies in paisley, The first a 2 Bedroom flat for £42K and is tenanted at £395 PCM providing a return of 11%, On a 90% LTV @ 4.9% apr, giving me a cashflow of £200pcm($500)
The other one is very similar, slightly more expensive at £49k but still giving a nice return of 10%.
My next week was in Belgium where i am going into a joint venture with a freind of mine. Brussels is absolutely packed with +CF properties and very very attractive lending rates at around 3%!!! and i found the belgian Banks are very keen to do bussines with real estate investors.
You can get yourself a modern 1/2 bed flat in Brussels for around 70000 Euros that will rent for 700 euros per month!! And with the low borrowing rates you stand to make a very nice return, CF and very good potential for capital gains!!
Food for thought!!!![biggrin]
Hi Andyperry. What an informative post – thanks for sharing that info with all, and not being cagey about where you are investing. Tell me, is it possible to provide a tad more info on how you went/go with finance over there, as I take it you are an Oz resident, and were unlikely to have had any sort or preapproval for both areas? Hope these work out as great investments for you. [strum] Thanks
Hi Andyperry,
sounds like good finds.Re: Brussels, are the purchasing costs there quite expensive ?
From what I’ve heard, you have to pay Property registration of of 12.5% for land and buildings and V.A.T is charged at 21% on buildings less than two years old with the same rate applicable for the renovation of old buildings.
Is that the case ??
I’m currently based in Ireland and I’m looking for +CF property in mainland Europe.
TIA,
aidanHi 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 investingNo advertising for investors
S
Hi Andy,
Looking forward to hearing what you find out.
Regards,
PeteHi Andy,
I'm relatively new to overseas property investing but very interested in your post back in October '06 regarding your purchases in Scotland and Belgium. Six months on – do you have a current view of those markets?
Regards,
Craig.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
