Ch 4. Now (8pm). A Place in the Sun: UK & US. Want to buy an investment in the UK

PasturesNew

Paula and Julian - sold their fashion business and now want to relocate to the US with their 2 kids, but want to invest in property in the UK.... they thought a flat would be good.

Poole, Dorset

"best return out of their investment"

Average flat price is £180k, they have a budget of £200k.

Going to Florida in the US. Budget £650k there.

PasturesNew

They want "a cash cow".
Asked about location he said "it's about the return".

Asked who their ideal tenant would be: "a young professional"

Orchard Plaza, still being completed. Only 20 have sold so far. It's a converted office block in the town.

Presenter: "Ideal investment property".

PasturesNew

Orchard Plaza prices sold: http://www.houseprices.co.uk/e.php?q=orchard+plaza+poole&n=100

2 bed flat, family bathroom + master en-suite

Income potential for that flat £850-925/month. Offers around £190k

Has a balcony and a car parking space.
Service charge £1000/year. 125 year lease.

"Probably only going to keep it for 10 years"

PasturesNew

Parkstone, outskirts of Poole
Victorian and early 20th century properties.
Most in that area are aged 20-44.

2-bed Victorian conversion with its own garden.
Top floor flat.
He: "Looks like an old people's home"
She: "I quite like it"

You get a share of the freehold.
Service charge, 8 flats, £800/year. Huge sink fund and spent money on new roof/flashing/gulleys etc in recent years.

£750-800/month rental potential.

It's just been reduced from £185k to £169k.

PasturesNew

A house. Freehold. In Hamworthy (across the bay)

2000 new homes have been built there. 5,500 people live there.
3-bed townhouse over 3 levels. £250k. One identical a few doors away just sold for £40k less.

It has an i ntegral garage.

Downstairs loo, kitchen diner, top spec appliances. Appliances included.
Garden is turfed.

Presenter spoke to the developer and said they had £200k to spend and he thinks they might be able to get it at that price at a push as t here are still 35 to sell there.

Assume you'll get £900/month rent.

They like the townhouse best. They figure it'll be easier to rent it than a flat.

mewbie_2

Not watching, don't need to! The rental returns you describe are at best around the 4% mark, that's assuming you do all the rent stuff yourself, and pay cash, no mortgage. Oh..and that the property will not drop further in value.

4% to be a landlord, when you can get 7% on safe bonds (tax free in an ISA).

PasturesNew

Sarasota, Florida.

One third of properties in Florida are sold to foreigners. 21% of those buyers are British. Property in Florida is 9% lower than the rest of America.
Prices in Sarasota are up to 15% higher.

Florida would be a family home for t hem.

Their spec:
Good area for kids to go to a private school, 4-5 beds, swimming pool, really good Wow factor, sea view or some kind of water (hoping to get a boat).

Property on the water can be up to 50% more than the same house away from water.

They're hoping granny will join them over there, but they don't know yet.

PasturesNew

mewbie wrote: »

...you can get 7% on safe bonds (tax free in an ISA).

Except for two factors:
1) Most of "these people" will be borrowing money to buy property, you use your own cash for bonds
2) Those things and the way you say you can get 7% goes right over the heads of 98% of us

PasturesNew

Actually, I think the programme is a re-run, I'm sure I've seen it before.

And it's dull .... nearly nodding off here... and they're annoying.

PasturesNew

Bradenton?

Presenter is going where it is cheaper ... bit north of Sarasota, didn't catch the name as the keyboard was making too much noise

26 beaches, over 150 miles of waterfront. House prices are 25% cheaper than in the heart of Sarasota.

4-bed house in a gated community, with a pool, school nearby, space for granny.

She wants more space, she thinks it's a bit small, but then the bathroom is huuuge.

On for £795k originally, reduced to £605k now.

Mooring alongside the house.

She thinks houses are too close together, garden needs to be bigger, need a bigger pool. She didn't like that new houses were being built the other side of the water.

*********

Next: Siesta Key
Another gated community. High Sandolin(?)
Own private beach and marina
5 beds and 5 baths.

1200 square feet bigger than the last place.
Master bedroom has his and hers bathrooms.
Pool.
He wishes the pool was bigger.
On the market for £825k - it's a short sale, the bank has requested that they sell it. Offer of £630k had previously been made, and accepted by the bank and the seller, but the buyer pulled out.

Mooring is a few minutes away. £13k one off fee to join.

*********

Next: couple of miles away, on the way to Siesta Key village
One of top 10 beaches in America.
4-bed house with mooring.
Not in a gated community, but it is an exclusive neighbourhood.
Smaller than the last place.
Pool.
Mooring is at the bottom of the garden, 50' of mooring.
On the market for £860k.

She would like more outside space for entertaining.

Annpan

Very annoying. I thought I'd seen it before. Nowt on the telly anymore except the tennis and now Murray's out I can't be bothered with that either.