Property investment

clioclassic

Hi there
Can anyone advise us on whether it is a good time to invest in Property. We are considering investing some of our savings into a property intenerife. We have approx £100k to invest into a property and were wondering if this would be a good plave to invest into.

We are fresh to the property thing and would love a property abroad to "flit" off to occasionally. We wold rent it out too.

Has anyone else invested in property aborad. and is it a good time to do so. Any info would be gratefully accepted

Reaper

I don't think I'd buy in this country, and I suspect you have chosen Tenerife on the basis of going there for occasional holidays rather than its investment potential.

My feeling is that when you are talking large sums of money such as that involving property you should be hard headed about it and forget the holiday side. Get it wrong and you will easily lose more than it would cost to stay in a Tenerife hotel for a couple of weeks a year.

If you are looking at buying abroad then Channel 4 did a program recently on the top 20 countries to consider. You can find the list from their program here.

deemy2004

Yeh UK no.

But overseas ?

Turkey still looks good, despite a rally, then their are the eastern european countries such as the baltic states...
Now they look interesting for the long-term

grumbler

UK:
**Don't Buy A House** House Prices Set To Crash!!!
***Buy a house*** ... *** House Prices Set to rise***
***Maybe buy a house**Prices to fluctuate over many years**
:mad: :mad:

System

grumbler wrote:

UK:
**Don't Buy A House** House Prices Set To Crash!!!
***Buy a house*** ... *** House Prices Set to rise***
***Maybe buy a house**Prices to fluctuate over many years**
:mad: :mad:

Grumbler, am just interested in where you get that assumption from? The reason i ask, is because we are looking to move. I would need to sell my house first though.

clioclassic

thanks for your replies... We have set our hearts on Tenerife thou... we visit the country often and just thought that a appartment there would be nice to be able to just up and go when and if we wanted. Also at the same time we could rent it out and get back over the years what we put into it.

grumbler

Judi wrote:

.. where you get that assumption from? ...

They are links to threads. Just click.

Pal

clioclassic wrote:

thanks for your replies... We have set our hearts on Tenerife thou... we visit the country often and just thought that a appartment there would be nice to be able to just up and go when and if we wanted. Also at the same time we could rent it out and get back over the years what we put into it.

Looking at it from a purely monetary point of view:

Cost of buying a property = £100k plus taxes of a couple of thousand a year, plus furniture (say £5-10k), plus late booking flights out to Tenerife three or four times a year (say £150 each per trip) = £900 to £1200 per year.

Alternatively....

£105k (inc furniture saving) saved in a cash account at 5% p.a. would earn interest of £5250 a year. Knock off basic rate tax at 22% = £4095 a year.
Cost of a packaged two week holiday in Tenerife for two at a 3* self catering hotel is about £1000? So you could have four two week trips a year and keep your £100k in the bank in case you need it. If you are a 40% taxpayer then you only get three two week trips a year.

Of course this only works if you actually have £100 saved up ready to put in a savings account (ISAs etc). If you are borrowing the £100k then you really ought to be looking into this in a great deal of detail. The financial risks are not insignificant, so be very careful.

The advantage of buying and renting out is obviously that you get your £100k back over time, however BTL in any country is a business and you need to do your research before getting involved.

Pal

deemy2004 wrote:

Yeh UK no.

But overseas ?

Turkey still looks good, despite a rally, then their are the eastern european countries such as the baltic states...
Now they look interesting for the long-term

Sounds like the "widows and orphans" phase of the stock market bubble to me...

sukey13

Yes buy buy buy.

Long term property will go up. It always has and always will. Just make sure that your rental will give you a good yield after covering all expenses.

Gearing will make you more money.

Just bought an off plan 3 bed villa in Domincan Republic. Will require £80K down. Purchase price $475000. Overlooking a Jack Niclaus golf course, and caribbean sea. Near marina and private beach. Complete in 2007. Bought last night. Now sold out. Next phase of same sort will be $100000 more.

Go for it. Do your research and pick a good location.

We also have a flat in UK renated out and a HMO (House in Multiple Occupation) which we are converting the garage on.

Bought a repossession and did it up and sold for £66K profit. Recently finished converting 2 flats back into a house to make £75K profit.

Useful forums that can help you make money in property are
https://www.singingpig.co.uk
http://www.housemouseuk.com/index.php

I don't get anything for recommending these.

Read books from property tycoons and learn from their mistakes.

Good luck!

deemy2004

Its easy to make money in a bull market.

In a bear market... well its easy to lose money as many stock holders learned from 2000 to 2003