Can't buy in UK - so where else?

Dave_Brooker

EagerLearner wrote: »

Hi all,

We've given up on the Uk house ladder and thinking about property abroad. In our thirties, open minded and more willing to take a gamble on countries that are unknown now but will be valuable in years to come. Bulgaria, Croatia and Marocco seem interesting - can anyone give us any tips as to some areas in those countries that they think may become popular?

If we can make it happen we'd buy something to rent and use as a holiday home, restore it over the years etc. Prices in Bulgaria start at £4k ish although in areas that are not well connected (yet).

There are doubtless houses in war zones that are even cheaper...

I assume you don't plan to live in the back end of Bulgaria, so why bother buy a house there?

navidson

TTMCMschine wrote: »

This is how crazy it's got - you're considering buying in Bulgaria. Probably somewhere you've never even been. Do you even know what language they speak. This is the madness we've got ourselves into, and people call it the norm. I don't think these properties are going to be your future bread and butter. They are the answer to peoples' desperation, and fascination with investing money and new fads. I think they are just that though - fads. Just look at the pure stupidity of the housing situation now, and take it with a pinch of salt - i can't see how it can continue. Of course you don't have to listen to me - i could be wrong. ps i don't own a property - would like to - but right now they're a rip off.

Exactly, its gotten to the point where people are buying houses in areas they dont want to be in, just because it's all they can afford.

I earn an average wage, dont have any debts, no children or dependants, and i cannot get onto the housing ladder. There is something very, very wrong about the current situation in this country.

smugbear2007

i simpathise with your plight EL. I had a similar thought of making a few quid abroad, then cashing out to provide a deposit to live in the cess pit that is the uk. im no expert but these are my thoughts for what they are worth.

1. dont get suckered into the "holiday home thing" where you will rent it out and use it yourself. to my knowledge it isnt that simple for a stack load of reasons.


2. bulgaria is a joke from an investment point of view in my book. ever holidayed in sunny beach? the place has gone BONKERS with apartments flyinf up left right and centre. no resale chances whatsoever. locals cant fuel a HPI as they earn jack all, so if you cant sell to idiotic brits you are stuck....However eastern europe has some beautiful places to LIVE if you are cash rich but wages are generally low so has obvious implications if you want to borrow and work out there....to earn jack all

3. IMO if you want value for money then Germany is emerging as the "obvious choice" as prices there extremely reasonable and stand the best chance of giving a YOY increase in the mid to long term ie 5 yrs+. Germany are a nation of renters so letting out shouldnt be a problem if you select wisely and do your DD.
HOWEVER renting laws in gy protect the tennant in a big way, ie cant put up rents much, cant serve notice without reason etc etc. also need a big deposit as no such thing as a 100% mortgage in gy.
the culture and weather is similar to ours as they like beer, throwing bar stools and rioting when there is football match on so it should be like home from home :T worth a look though i feel

smugbear2007

navidson wrote: »

Exactly, its gotten to the point where people are buying houses in areas they dont want to be in, just because it's all they can afford.

I earn an average wage, dont have any debts, no children or dependants, and i cannot get onto the housing ladder. There is something very, very wrong about the current situation in this country.

here here, but it is a wrong that is soon to be put right my friend, dont despair and get saving.;)

wolvoman

navidson wrote: »

Exactly, its gotten to the point where people are buying houses in areas they dont want to be in, just because it's all they can afford.

I earn an average wage, dont have any debts, no children or dependants, and i cannot get onto the housing ladder. There is something very, very wrong about the current situation in this country.

As I found out recently, you're talking nonsense.

You are correct that an average priced house is more expensive than the average mortgage and saving combination can afford. But to say you can't get onto the housing ladder is not true.

Presumably you expect to be able to buy a nice big house?

EagerLearner

I see all your points, but we don't know what else to do. There is no way I would buy here right now, because no matter where you chose you would be paying over the odds even in a cheaper area. Like Navidson we are debt-free, have savings are are putting more away each month.

I am not foolish enough to hope for a crash because that would be bad news for everyone, but we want to know that at some point we can afford to buy in our own country. The thinking of buying abroad is what we've been reduced to - and you are right, we have never even been to the 3 places I mentioned! That's how bad it is. My mum keeps trying to convince us to move to Portugal but the economy there is not amazing either right now. Plus we have good jobs here and like the UK.

I guess property !!!!!! shows abroad have something to answer for - when you see £4k price tags you are tempted - but as prices here are so crazy, seems no matter what we put away each month inflation / house increases every quarter may well be eating that monthly saving up.

Depressing, a crash isn't what I want but what else is there to hope for for FTB?

lynzpower

I guess property !!!!!! shows abroad have something to answer for - when you see £4k price tags you are tempted - but as prices here are so crazy, seems no matter what we put away each month inflation / house increases every quarter may well be eating that monthly saving up.

hun, there are plenty of places in te UK where house prices are not increasing. Additionally, there are loads more places where properties arnt shifting either.

Would you consider moving to another part of the UK to buy a home?

talksalot81

Why the desperate need to buy property though? Do you have enough cash in the bank to buy outright? Since you are not going to be living in the house, it presumably will be entirely purchased for capital gains? That being the case, if you are buying outright, could you not just look to invest that money more wisely without purchasing property? And if you would be relying on borrowed money - is it really worth risking your debt free status and comfortable income situation for a potential capital gain (which is far from guaranteed) in a market which you do not really know?

I cannot afford to buy within the UK because the resulting debt would be unmanageable - so I save sensibly and wait. If I gained a large debt abroad, I would have yet another thing stopping me buying in the UK (whether it appreciated or not, the money would not be easily available to use at home).

Running_Horse

EagerLearner wrote: »

I see, so I am not allowed to want to own a property ? I can't get one here, so I am forced out of the market by my own country to look abroad because I am not foolish enough to agree to ridiculous lending criteria on my salary (that would eventually hang me). And I want to be able to have more than a studio flat for my £130k mortage!

So really what you are saying is not that you can't afford any property, but that you can't afford the kind of property you want at a reasonable price, in the area you want. It is a sensible position to adopt just before a potential drop in prices that might help you. But if prices do drop, do you want your money tied up abroad, where it is probably a lot easier to buy than sell?

Your first sentence seems to suggest a direct link between the UK and foreign housing markets, and that if you miss out on the latter you will never join the former. Think of it this way; you want to invest some spare money in order to be able to buy a UK property at some time in the near future. Why not invest it closer to home in a business, or shares, or gold ingots? Probably a lot safer than the countries you mentioned.

At the risk of sounding nosy, is there any reason you did not buy five years ago when prices were lower, and do you really believe prices will never fall below their present levels? I remember people saying similar things in the 80s, just before a major crash.

lynzpower

What are your feelings on shared ownership? eg http://www.rightmove.co.uk/viewdetails-13300327.rsp?pa_n=6&tr_t=buy