I was wanting to get some advice and assistance from all of the property invesment experts out there!
My partner and I have just purchase our first property which is our PPOR. At present, we don't have a great deal of equity/savings to use for deposit, but are both on relatively good incomes and can save quite a lot in a short period of time.
We are starting to look at our first potential investment and are looking at investing in the UK.
I have completed some initial investigation – using some property searches online and can see that there are quite a large number of CF+ properties over there.
I need to know where to start my research. Things like CGT (not our strategy, but need to take that into account); tax implications; financing a deal; local areas etc…
What are the main things that I will need to research and where do I find this information??
Look forward to your advice!
Hi,
It's not impossible to invest in a different hemisphere, but…obviously, the property market in UK is completely different to Oz, different rules, etc. and of course there's the tyranny of distance.
I imagine finance would be a big hurdle – banks in UK are currently reluctant to lend to UK residents with good credit, not sure how the non-resident market stacks up.
Why are you wanting to invest in UK? Are you resident in Oz?
Make sure you have as much knowledge of the UK market as possible – not just prices and rental yields, but what's on the horizon (housing benefit cuts and caps, mortgage lending restrictions, flood prone areas, tax, to name a few)
Have a read of UK investing websites like this one http://www.landlordzone.co.uk/forums/index.php
And have fun – for me, research is the fun bit! It's a big adventure!
Swampy
hi here is site for your help
Overseas PropertyThanks Swampy,
That is some really good advice and some things that I hadn't thought of (i.e. flood prone areas).
Reason for looking at the UK is just the potential that I see, then again, that could be because I haven't fully researched it as yet.
The UK has quite a depressed economy in general and so could possibly have a bit of room to grow in the future.
I could be completely off the mark, but I don't think it will hurt to research!
Thanks for the advice.
Cheers,
ElissaElissa,
from the looks of the posts above you have some initial concerns to investigate before continuing.
One of the issues that I thought of was getting the tax benefit? I was under the impression that there is not tax benefit for property investors in the UK, can you redirect your funds somehow so that you can claim the interest through the ATO? Sorry if that is a stupidly obvious question with an equally obvious answer, I have never delved too deeply into OS investing.
I think the UK has further to fall in terms of property prices…the gov just laid of 50,000 workers. If you do find a property make an offer rather than pay the asking price. good luck
Hi Elissa,
How is your research going re: investing in the UK?
We too are considering this option. We made an initial inquiry with a UK bank while my husband was there early this year. My husband has duel Uk/Australian citizenship. They said we would not be able to get a mortgage as we were not UK residents. Our interest to invest in the UK has been sparked again especially with the weak pound.
We would be interested to know if you are going through with your plans and how you are going about financing your purchase.
Thanks
JanHi Elissa,
Here’s a thread from another forum you might find of interest. As with all investing research is the key, but when you’re investing in the UK research, research and more research. Having worked in property in the UK for many years I can tell you it is completely different from Australia so just beware as what looks like CF+ at first sight can soon become the exact opposite with the additional kick in the teeth of no negative gearing. I’m certainly not saying dont do it, as there is definite opportunity there, just be very cautious.
http://www.somersoft.com/forums/showthread.php?t=67181
Cheers
Mr M
Hello,
If interested in Uk loans, we have a contact who deals with expats and he can guide you through this.
Regards,
Steve
My partner is English – but not a property investor.
Her immediate comment in regards to UK property is NO. She advises that tenants seem to have more rights than landlords, "Squatters Rights".
I haven't looked into it, but she describes it as someone who lives in your property, pays no rent, trashes it. In addition although you can eventually remove them, it sounds long, slow and painful.If getting serious about the UK then i would want to understand fully the ins and outs of tenants vs landlords rights, and property management.
Good luck
Hi all – as far as I am aware if you are living in Oz then you pay your tax in Oz – therefore deductions for interest part of mortgage on UK property work exactly the same (by the way they do allow most of the same tax deductions in the UK as they do here). As far as tenants rights I can see no difference in them compared to Oz.
Getting a lendor may prove more difficult unless you pay a higher rate and go with an ex-pat mortgage provider
Hi there,
I have been doing some research to on the UK housing front and have found that the tenant pays the rates, and all outgoings.
A friends of mine recently purchased a house in the UK using his Australian salary to secure the loan, there website is below, but only on a 75% LVR, which seems fair is you are buying in uncertain times!!If you are buying cheaper houses threshold for stamp duty is around £150k, there are plenty of cash flow deals over there, as is always the case, due diligence is always required. Tenants can be a problem all over the world!! unless you get the right one, always risk involved as investors know only too well
I am dual citizen and i know that buying well over there now is a big opportunity for the future.
Wish everyone good luck with this strategy and would love to hear from those who have been there and completed deals.Regards
Ianelissa2009 wrote:I was wanting to get some advice and assistance from all of the property invesment experts out there!My partner and I have just purchase our first property which is our PPOR. At present, we don't have a great deal of equity/savings to use for deposit, but are both on relatively good incomes and can save quite a lot in a short period of time.
We are starting to look at our first potential investment and are looking at investing in the UK.
I have completed some initial investigation – using some property searches online and can see that there are quite a large number of CF+ properties over there.
I need to know where to start my research. Things like CGT (not our strategy, but need to take that into account); tax implications; financing a deal; local areas etc…
What are the main things that I will need to research and where do I find this information??
Look forward to your advice!
Hi Elissa,
I still think the UK has plenty to offer, the hardest part is getting the area right. Formerly I worked for an investment firm in Canary Wharf London, I'm now located in New Zealand, would be good to find out your objectives as I have plenty of contacts back home.
James
Hi Everyone,
I’m an Australian living in the UK for the past 7 years (I have residence) and am very keen on getting clued up on the UK property market so I can invest asap. There seems to be a huge amount of CF+ opportunities over here but I only have the knowledge accumulated from Steve’s book and “The Real Deal” which are both Australian based. Does anyone know any good books, people, conferences I could read or attend or contact to get clued up on the UK market?
Samantha
You must be logged in to reply to this topic. If you don't have an account, you can register here.
