Investment Property Abroad

Daniel54

atush wrote: »

It is more the Foreign aspect, you aren't nearby, you aren't a voter, but are a taxpayer, currency risk, you have no option to run it yourself but would have to pay management.

After proper diversification into pensions, cash, S&S isas and other equity if I wanted to make money (rather than have holidays myself) I would look into a BTL in the UK.

Agree with this.

I view our property in Italy as an asset from which we choose not to take an income ( which would be possible but complex for the reasons above).We have made some notional capital gain over time,down to renovation,time and exchange rate movement.

However this is a lifestyle investment from which we have gained much pleasure.

If your sole motive is income and/or capital gains,then invest in a fund rather than a single property

bigadaj

N1AK wrote: »

Thanks for the response bigadaj. Both my partner and I both contribute to pensions and are doing so at the level required to maximise the employer contribution.

Good, my point was that with many defined contribution pensions you can hold a range of asset classes. You can hold property funds, commodity funds, bond funds etc as well as equity funds so you don't necessarily need to hold property directly.

You can of course, but direct holding if property is generally a business with teh associated costs and work, and yields are often quoted gross rather than net whereas it's the latter yacht is important to any investor.

atush

Daniel54 wrote: »

Agree with this.

I view our property in Italy as an asset from which we choose not to take an income ( which would be possible but complex for the reasons above).We have made some notional capital gain over time,down to renovation,time and exchange rate movement.

However this is a lifestyle investment from which we have gained much pleasure.

If your sole motive is income and/or capital gains,then invest in a fund rather than a single property

Completely agree. Our gite in France is the same, bought for very little, used over the years (20+), take no income (don't rent it) as we didn't haven't time or inclination to make it 'perfect' as you need to do for rental clients. Plus the complexity mentioned above. We have owned it for over 20 years, but even though I visit the tax office EVERY year, they still don't send our bills to the proper address. Would make a french tax return a nightmare.

We have a capital gain which we will realise in a few years.

The US house rents out, but although at a good rent in winter it doesn't cover 100% of costs. Does help though. No profit (kinda good in a way as I would have to pay tax in both US and where I live).

N1AK

bigadaj wrote: »

Good, my point was that with many defined contribution pensions you can hold a range of asset classes. You can hold property funds, commodity funds, bond funds etc as well as equity funds so you don't necessarily need to hold property directly.

You can of course, but direct holding if property is generally a business with teh associated costs and work, and yields are often quoted gross rather than net whereas it's the latter yacht is important to any investor.

Thanks, that is a good point and one I did miss in your original post!