All Topics / Overseas Deals / Investing in the UK property market as an Australian ?

Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of ChrisChurchwardChrisChurchward
    Participant
    @chrischurchward
    Join Date: 2019
    Post Count: 1

    Hi everyone,

    I’m new to the property investment market as I’m getting tired of running myself into the ground as a small business owner an getting absolutely no where.

    I’ve been learning a lot from rich dad poor dad over the last few months and can I say wow my mindset has done a 180 and I’m now on a mission to have my own investment portfolio.

    I’ve listened to audiobooks and attended some investment seminars so I’m committed to learning. I’m looking for people to connect with to help me truely reach financial freedom and have as a mentor.

    I’m really interested in investing in the UK market as roi and rental yields are great, population and future developments are high also, but as a Australian getting a buy to let mortgage is a bit hard from what I keep reading.

    Has anyone got any experience, tips or advise in this area?

    Also I would love to hear if it’s possible to use the strategy of OPM for the property deposit and upfront fees from other investors for a profit share of the properties net monthly income for the duration of ownership of that property ?

    I know getting your foot in the door is the hardest thing but once your in it becomes easier to leverage everything as long as the numbers add up.

    Any help advice and recommendations are very welcomed 😊

    Thanks everyone 🙏🏻

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    Chris, As a Non Resident you wont get ANY UK lender to provide finance on an investment property.

    I have a property in the UK and a UK Bank Account having been born and bred there and even i can’t get finance.

    You thought it was hard to get Finance in Australia as a Non Resident well the UK is even harder.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of MurchieMurchie
    Participant
    @brucemurchie
    Join Date: 2016
    Post Count: 2

    Hi Chris,

    I am an Australian based in the UK and investing in UK properties. My strategy is currently flipping or in Steve’s mantra adding value. Properties values vary hugely across this small densely populated country the size of Victoria. In Wales properties are available from £30k and renovations costs for example to turn this into spick and span would be around £20/30k and then flip for £80/100k. Rental returns are in the region of 8/10% net. UK residential is similar to Australian commercial where the tenant assumes all the costs of the property. Finance is available at 70% LTV. Money laundering rules apply and you have to show the source of funds and that can be from Australia. The secondary finance market is plentiful with costs in the region of 1% per month. JV’s are available and that can mean no money down and split the returns. Multiple occupancy (HMO) is also different to Australia although I have a mate in Melbourne who operates something similar. There are some 300,000 shortages of houses and some 1.2m bedroom wanted to meet the demand. As such there are government and council-based schemes to assist in the conversion of commercial to residential to help meet this huge demand. The conservative government has restricted and it will soon be eliminated that interest costs cannot be offset against income rent for individuals for normal house rentals but these rules do not apply for HMO and for services accommodation and also do not apply to property purchased via a Limited company. BTW. Company tax is 19% being reduced to 17% next year. Hope that helps.
    Bruce

    Profile photo of c4mc4m
    Participant
    @c4m
    Join Date: 2007
    Post Count: 6

    Hi Chris
    Not sure if you are still considering investing in the UK property market, or you may already have made a start – but have you checked whether you are eligible for a BTL mortgage thro a UK sharia bank?

    Profile photo of jamboy1jamboy1
    Participant
    @jamboy1
    Join Date: 2019
    Post Count: 0

    Also curious – Just managed to get my UK citizenship as an Aussie – I’m not sure if this will suffice for finance or whether I need to show proof of living in the UK for a minimum period of time. Would anyone on here recommend looking into the UK market vs Australia? My primary goal is positive gearing / rental income however I’m certainly open to flipping as Murchie mentioned above.

    Profile photo of c4mc4m
    Participant
    @c4m
    Join Date: 2007
    Post Count: 6

    Hi jamboy. If you are looking for positively geared property, the north is probably your best bet (e.g. Leeds, Sheffield, Nottingham areas), or parts of South Wales. I’ve heard that prices are on the rise in Manchester.
    The buy-in price can be a lot lower in the north than in the south, but it’s the same principle as in Australia – if the property is positively geared don’t expect much if any capital growth.
    ‘Flipping’ in the UK is certainly not a quick process, with solicitors making the buying and selling process very slow, so that even a cash purchase and no chain can take 4 months or more to complete.
    There are fewer peaks and troughs in the UK property market than in the Australian market.
    But who knows what will happen after the general election today… ;-)

Viewing 6 posts - 1 through 6 (of 6 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.