Hi ,
I want to ask peoples opinions on my friends situation and what he should do with his property he currently owns. I am amateur and new to property investing so nervous on what I should suggest to him.
The situation:
He owns a property in the UK (He is English) the property has decreased in value since he purchaed it. He has also renivated it quite a bit. So lost a lot of money due to the GFC.
He has a tenant in there who is a long term tenant family friend that is paying a little under what she should be paying.
Once rent is paid he is making a small positive cash flow but maybe 10 GBP.The outlook is very dull for the UK housing market with more drops in housing prices predicted.
I would like peoples opinions on what you think he should do?
BUY SELL HOLD? I think he has about 70-75% of the mortgage left to pay.My suggestion would be to keep paying off the mortagage as is and when the market goes back up to sell the property and hopefully make a capital gain.
I understand this is not a site for advise but any suggestions would be worth a ponder!
Thanks in advance
JaneHas your friend considered the Australian property market in terms of foreign investment? Depends on his or her financial resources of course. Heres more info: http://www.firb.gov.au/content/real_estate/real_estate.asp
He is actually in the process of becoming an Australian resident therefore I guess it would not be an option as a foreign investment.
I think it would depend on if he thinks he could get a better return elsewhere after taking selling costs into account.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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