Where to invest Property or Savings before emigrating

honeymademoney

Hi Everyone,

We have managed to save close to 100k, we are still renting and are emigrating next year. We are not able to decide between buying a freehold house in London or lock it in savings. We are looking to buy property under 180k, if we decide to invest in property. The property rental income will be between 750-1000 pounds per month.
We were inclined to buy a freehold property and after a year before emigrating, let it out to local council or letting agent. The idea of investing in property so that we can reap the benefit later when we retire that is another 15-20 years from now. Then again we aren't entirely sure if letting agents will genuinely manage the property well and pass on to us any rental increments. That's one of the reason I thought letting it to local council for 3-5 years would be good idea, though not heard of any reviews on this yet.

So bottom line is I need all your valuable advise in deciding to either invest 45k (i.e 25% deposit of 180k ) in London or lock the 180k in savings. We plan to buy a residential property in other country to (Canada) for us to live in, within 6-8 months after moving.

Please help me with your invaluable advise and experiences.

Cheers,:)

DavidHayton

I would hesitate to buy a valuable asset here in the UK and then leave it for others to manage when you are a long way away. Put yourself in the position of any letting agent / council dept / tenant: the absentee landlord is very easy to squeeze / mess about / ignore when they are 6000 km away.

Are you thinking of returning to the UK when you retire? If so there is wisdom in leaving real assets in the UK ... though I would investigate pooled investments in real estate instead of a single property. It just spreads the risk.

If you are going for good, then I would take all my money with me. I have family in Canada and the prospects there seem much better than for the UK.

Best wishes
David

honeymademoney

Hi David,

Thanks for your reply.

Are you thinking of returning to the UK when you retire?

This entirely depends on our living standards, life style and work culture in Canada. Depending on the circumstances we might not return permanently, at-least for 2-4 years.

Idea is to buy a property in Canada within 6-8months and if things work out fine and if the UK property rent covers the mortgage without any long term vacancy, then we might leave it on let until its manageable. The reason I was thinking to letting it to council' management is that on assumption that they might take care of the property at least better than dishonest and greedy letting agents. Besides that council take care of property without charging any commission and they guarantee rent even if the property is vacant. Downside would be to expect less rent from council when compared to letting agent, difference in rent will be between 200-300 ( my guess ).

If things workout fine in Canada and if the UK property is not manageable after 3 years or so, I was thinking of selling the uk property, hopefully the property market would have picked up by then and I should be able to sell the 180k property to 215k for few thousand pounds profit after all the tax and cost and either leave the money in UK in savings or something like that or transfer most of it to Canada and put it aside as savings or buy another property in Canada and let it out, if the rental market is good in Canada.

All the above sounds fine in theory, not sure if this would be good idea and practical to do so.

Cheers,