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Hi
As house prices in the UK are falling/standing still, would you advise buying overseas for now, until the market stables here.
For example, to buy in america, you need a 20% min deposit, so thats an 80% mortgage, i need to research what there house prices are doing, but if there currently rising, would it not be a good idea to skip England for now, and buy overseas?
Thanks
Matt |
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Tough one.
So many other risks to take into account when dealing with overseas. I think you'll find that the US housing market has been even more rampant than ours. Plus the currency risk - the dollar has fallen sharply recently - whether this makes it a cheap opportunity to get in the market, or whether there is further for the dollar to fall, who knows.
One country which did catch my eye is Greece - I think it was in the FT that I read house prices fell 8% this year. I'm going to do more research to find out if they have had the boom over there yet and if it's now falling back, but I have a feeling that they haven't boomed at all in the same way (or maybe the Olympics distorted things?). I think the Greeks are fairly debt-averse, so possibly less likely they've boomed in the same way as the rest of Europe/ US?
It's anyone's guess what'll happen in this country, let aloneabroad imo!
Will |
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Good post Will, thankyou.
Everyone i seem to meet is telling me to stay away from buying in England now, so im trying to be safe and thought about overseas.
I have not researched anywhere buy America yet, you can get some good propertys over there in the sun (Florida) at great prices, compared to England.
And i thought i could rent out to holiday makers aswel, renting out at £300 a week, when the monthly mortgage would only be £250!!!
If anyone here already has a property in Florida, or America for that fact, your advice would be a god send!!
Thanks
Matt |
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Yes, there is a greater range of prices of properties compared to what we are used to. I'm not talking from experience, but a family friend in his 80s just purchased a "mobile home" on a park over there. They're not what we'd call a mobile home - there's no wheels or anything (!) and it looks like a chalet I guess. But it's less substantial than a brick house, and you could pick up a 2 bed place for less than £40k (in Port Charlotte, near Fort Myers). The Canadians come down every winter to escape their deep freeze, so there's good renting opportunities I think.
The particular park he is on is for over-55s, so although you limit your customer-base, you'll probably have less problem tenants!
Will |
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timing is not what it was for investment in the uk but that said it is a solid bet. the economy is sound and prices have stabilised.
also you need to be careful of exchange rate risk. you can wipe out all profits simply from a 20% movement in the dollar or euro.
over recent months i have thought long and hard about this and i even nearly invested abroad but i have decided investing abroad is probably not for me. i don't understand the language, culture and exchange risk is a big worry.
stick with the uk!
tom |
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I find it hard to understand Americans too Tom |
