I hope you will excuse my relative inexperience, I am a definite newbie!
I am wanting to know if I am in a position to be able to start thinking about making money from property abroad.
Allow me to elaborate on my current posititon.
I have just turned 29. I earn about £20K a year, but that is made up of a £13K basic with comission and additions. I have around £5500 - £6000 sat in savings - and currently rent in Leeds, sharing a £650 flat with my better half.
Although my first priority should be to think about a mortgage here, my partner is just finishing University - and hence, has a large debt hanging over his head.
I really dont know if I am being completely unrealistic here - and wont be offended if am told so!
Any help - positive or negative - is very much appreciated!
I hope you will excuse my relative inexperience, I am a definite newbie!
I am wanting to know if I am in a position to be able to start thinking about making money from property abroad.
Allow me to elaborate on my current posititon.
I have just turned 29. I earn about £20K a year, but that is made up of a £13K basic with comission and additions. I have around £5500 - £6000 sat in savings - and currently rent in Leeds, sharing a £650 flat with my better half.
Although my first priority should be to think about a mortgage here, my partner is just finishing University - and hence, has a large debt hanging over his head.
I really dont know if I am being completely unrealistic here - and wont be offended if am told so!
Any help - positive or negative - is very much appreciated!
Gary
Do you have any reason to buy property abroad? Why don't you put your money in 6%/year yielding ISAs?
I already have this money invested into an ISA and a few savings accounts, but would really love to take that step onto the property ladder, but take a proactive approach in property investment too.
Gary, there are several options with low entry points that might be of interest to you depending on your investment strategy. If you intend looking at a holiday home with rental options, Lake View Golf in Turkey has a 75% draw down mortgage option available. Prices start at £50.000, so you would only need to pay £12.500 and could fund the remainder. Alternatively, Danubio Park in Budapest is a city centre redevelopment project with prices starting around £40.000 with 10% down on deposit and 10% paid during construction. Good rental potential - like a central european Canary Wharf!
DJGRH If you are financially linked to your partner and his credit position is poor then your options become a bit more limited. (Unless they find a well paid job.) Your deposit probably limits you to areas where the mortgage will be provided on a non status basis. It is not uncommon to have builders provide loans over 10 year terms in locations where rental returns are higher. But be careful, such places usually carry a greater risk than other countries. (Its a while since I've researched countries where rental yields of 15% are realistic, but they may be a good place for you to start. If Sri Lanka and Thailand are too risky for your appetite then perhaps China or Goa will hit a better balance between good rentals and risk.)
Another option is to team up with one or two others. There will be others out there that have spotted suitable opportunities but can't afford to go it alone.
If I were you, I would be very careful. You have very little money and expenses abroad can mount up. You may wish to buy in the UK in the next few years and if you have blown your money on a deposit abroad, you will definitely struggle unless you can get the money out very easily. Buying abroad can mean vary good returns, but you only have a small deposit, so would not get a mortgage easily - many places want 30-40% deposits and again fees add up. Buying abroad when you're priced out of the UK market sounds a great idea and if you do hit on a market abroad which rises a lot, you may well make enough money to get a place here. Equally, if you can't raise enough finance, you can lose the lot. Good advice given earlier by Soup is to go in with someone else to spread costs and risk. Don't be tempted by Bulgaria!
I'm realistic in what I can and cant do and therefore appreciate a balanced set of options - even if one of those options is to sit back, keep earning and maybe think holding off a while.
DJGRH: Most people who buy somewhere abroad will either have full equity in their UK home, or surplus income to invest, over and above the cost of their UK mortgage or rents. i.e. their UK home is 'sorted' one way or another. For most people, unless they are very well-off or inherit a windfall, the advice is to get your UK home sorted out first. However, it's quite common abroad for families to share the cost of a communal holiday home, even when young. If you or your partner has siblings, then it might be worth contacting them to discuss the economics of a shared place, and what you might want to get out of it (investment; hoiday home; miced etc.).
DJGRH, Ordinarily I would say you must march to your own drum but you have been given some valuable advice. Sort your life out here before even consider gambling with your money abroad. If you are still determined to look abroad then lessen the risk by sharing the risk if at all possible. My very first purchase was a mobile home in France purchased with five other family members to get the full use of it and spread the cost - I couldn't afford even the spread cost but I did it and never looked back. I add to this I had already purchased my abode here. I have a very good friend who thought he couldn't possibly lose on purchasing a house in Orlando two years ago - I decided not to join him in the venture as I thought there was a problem with oversupply in Florida. He scoffed at me. He has not realized the rentals he foresaw and the price of the property has dropped substantially - He couldn't lose, he is knowledgeable on the market, experienced as an investor and he still got burnt - be aware.
Once again, I appreciate you guys taking the time to offer a few minutes of invaluable advice.
In all honesty, I am not much of a risk taker with anything in life - and the advice given here suggests that I keep slogging away and stick a couple of quid in the bank for a mortgage here first.
Perhaps not the feedback I wanted to hear, but substantially important to hear back from people like yourselves who have had some great experience in buying abroad.
Originally posted by DJGRH: In all honesty, I am not much of a risk taker with anything in life
Awwwww. I wasn't when I was younger but I eventually found the point in life to get on the ladder.
It is great that you considered having a try . You have been very open with your earnings info here. If you want my advice, my approach is to ramp my income when I need more for a house or whatever.
Originally posted by Vonreisa: . I have a very good friend who thought he couldn't possibly lose on purchasing a house in Orlando two years ago - I decided not to join him in the venture as I thought there was a problem with oversupply in Florida. an investor and he still got burnt - be aware.
WOW, your friend really managed to buy on the top of the money!! Maybe by 2030 the investment will turn even.
Like you, I am not a big risk-taker. I view buying property abroad as a gamble and I would only 'gamble' money that I could afford to lose. Perhaps you need to buy a property to live in, in the UK before you consider an investment property abroad? You don't say what you do for a living, but if you can easily relocate have you thought about buying a property in a low cost area of the UK, such as the valley areas of South Wales or Hull? There are also areas in Manchester, Scotland and the North East where property is much cheaper than Leeds. If you want to get on the property ladder there are still terraced houses in need of modernisation to be had for around £50k in these areas.
Please be careful what you do with your savings. You have obviously worked very hard to accumulate this lump sum so please don't use it to line someone else's pockets.
Originally posted by DJGRH: Any help - positive or negative - is very much appreciated! Gary
Gary
You've been very open with your financial situation, and I commend you on your desire to enhance your financial standing. Of course buying a property overseas is possible with your financial situation and many companies will be circling like vultures to gain a sale.
But looking at your figures, your current standing (boyf just graduating with debt), and the toppy'ness of the market; I can't help but think you may need to focus on boosting both your earnings first via your careers/jobs. Once you've got a bit of capital behind you and a home of your own then perhapes look at investment property.
But then again i'm rather risk adverse like you and I can't say i've become rich via that approach.
The advise so far seems to be try and get yourself sorted out in the UK first and I would go along with that. I am financially OK in the UK and didn't consider investment abroad until that point was reached. I consider myself a medium risk taker but will, under no circumstances, put at risk what I have here. Only risk money you can afford to lose, the last thing you want is to go into a venture, it all go pear-shaped and you not only lose your cash but burden ourself with debt which you can't afford to pay back. If you borrow £50K from a bank they aren't going to be too sympathetic with your financial situation, they will still want their money back.
Personally speaking, I didn't invest abroad until I was on a sound financial footing here. I think you should do the same.
It is a great idea to try to go 'in' with others to try and spread the cost/risk. Property syndicates seem to be a good idea, though I think they generally require a larger outlay than the money you have.
At the end of the day though it is how you feel that matters, all we on here can do is give you our opinions/thoughts.
I didn't get rich doing this either, although I have made more money than if I hadn't done it at all.
. You have been very open with your earnings info here. If you want my advice, my approach is to ramp my income when I need
