Interesting idea regarding investing in property

Kez100

Up and coming areas for property value = holiday rental 52 weeks of the year

That is not an equation that works.

epz_2

the op is basicly hopeing to buy somewhere in the world that he can still afford and hope capital growth will let him buy in this country some day. in theory buying at the bottom of another market and waiting till the bubble burst in this one is a good idea.

the problem comes when you get into things like not knowing the market you will be investing in or having easy access to it also it then you get the fun and games of having to deal with possible local corruption and all sorts of weird laws you dont know.

then theres the real fun part, by the time the uk housing market has bottomed out interest rates will have droped since they woulnt be needed to control inlfation while the other country will be having inflation probs cause by a booming housing market and had to raised its interest rate. Now after risking the cash you could end up in a situation where any gains are wiped out or even turned into losses by changes in the exchange rate.

smart money would be to pay off they debt, save up and not subject yourself to that kind of risk when you really cant afford it.

mystic_trev

Mongolia's the next hotspot according to todays Torygraph!

Who in there right minds going to buy a BTL in Mongolia?

and this article in the Guardian

http://money.guardian.co.uk/weekly/story/0,,2035690,00.html

Now how many of you knew the Capitol City was Ulan Bator?

TJ27

mystic_trev wrote: »

Mongolia's the next hotspot according to todays Torygraph!

Who in there right minds going to buy a BTL in Mongolia?

and this article in the Guardian

http://money.guardian.co.uk/weekly/story/0,,2035690,00.html

Now how many of you knew the Capitol City was Ulan Bator?

Me, me, me. I did. Honest!!!

I know three people who are going on hols there in a few months time actually. They're flying to Moscow and then getting on the Trans Sib/Trans Mongolian, before doing a 150 mile running race across the Gobi desert.

So I doubt they'll be needing an apartment with a pool. It'd be a long way to run back to it every night.

ManAtHome

epz wrote: »

then theres the real fun part, by the time the uk housing market has bottomed out interest rates will have droped since they woulnt be needed to control inlfation

Might not work out that way...

BoE targets CPI (or at least they're supposed to..) - this doesn't include housing. If we have a recession, CPI could well rise as spending on non-essentials drops and they adjust what goes into the calculations.

As an extreme example, if everybody stopped buying plasma tellys, they would be dropped from the "basket of goods and services". This would increase the weighting of power, fuel, food etc.

..And it's mainly price reductions of non-essentials which has kept CPI low. Of course they could always switch to an RPI target of 5% or so...