First buy to let overseas - a bad idea?

dilby

Hi all -

I've currently come into a bit of money and I'm trying to work out whether I should buy an investment buy-to-let property or not. Specifically, I'm trying to find out what the difference in stress levels would be between owning one in the UK and in overseas (most likely france or spain).

Obviously no one can decide it for me, but I'm wondering if anyone can give an insight into if when it comes to it, the processes are quite similar with just a little inconvenience due to distance, or if choosing your first buy to let to be overseas is a ridiculous thing to do and involves way more learning curves.

I can't speak any other language to English, but have bought and lived in houses in australia and the uk so am not totally green to some similar life experiences. But my partner suffers from anxiety and I'm trying to walk the balance between helping to secure our financial future and having somewhere nice to stay ourselves, and reducing stress. I hope that's easy to understand.

Thanks everyone; I realise this is such a subjective post but any help is appreciated.

Gabbs_the_Newt

What's wrong with normal investments? If my wife was unwell, I would be sticking any moderate sum in a FTSE tracker (average yield 7%) and looking after her.

humphrd

Dilby - I!!!8217;d do your research carefully if you were planning to make any money ! We invested in France & certainly didn!!!8217;t make money, even though we had the property for 10 years & lived there for nearly 3 years.. If you are looking for something with grounds, pool & maintenance it!!!8217;s not cheap. If it!!!8217;s a holiday let you need weekly change overs & even when you are 1000s of mikes away guests will wNt problems rectified immediately.
Taxes are high especially for 2nd home owners & you need to declare your property if you are renting it so liability insurance & probably 50% tax.

Sure someone who has property in Spain can give their opinion.

eddddy

I know a few people who have/had property overseas - including France.

If you're looking for something low stress, don't buy a property overseas.

If you read through these forums relating to the UK, you'll see people complaining about lying vendors, lying estate agents, dishonest letting agents, dishonest tenants, incompetent lawyers, rip-off builders, dodgy plumbers, complex tax laws etc, etc, etc.

These types of people don't just exist in the UK. They exist in other countries as well, and you will have to deal with them (and/or try to avoid them).

But it will be 10x more difficult when you don't understand the local language, the local laws, the local customs. Plus because you're a foreigner (and living a long way away), you're seen as a 'soft-target' by rogues.


A tiny 'real-world' example... The French estate agent that told a British couple "It's much easier to buy property in France than in the UK. You don't need things like surveys." (which is kind of true) - and he went on to sell them a house with subsidence, that needed underpinning within 2 years.

AnotherJoe

dilby wrote: »

Hi all -

I've currently come into a bit of money and I'm trying to work out whether I should buy an investment buy-to-let property or not. Specifically, I'm trying to find out what the difference in stress levels would be between owning one in the UK and in overseas (most likely france or spain).

Obviously no one can decide it for me, but I'm wondering if anyone can give an insight into if when it comes to it, the processes are quite similar with just a little inconvenience due to distance, or if choosing your first buy to let to be overseas is a ridiculous thing to do and involves way more learning curves.

with someone who suffers from stress it's a ridiculously thing to do and involves way more learning curve - and why do you think it would be profitable ?

I can't speak any other language to English, but have bought and lived in houses in australia and the uk so am not totally green to some similar life experiences. But my partner suffers from anxiety and I'm trying to walk the balance between helping to secure our financial future and having somewhere nice to stay ourselves, and reducing stress. I hope that's easy to understand.

Thanks everyone; I realise this is such a subjective post but any help is appreciated.

If Investment in shares in an ISA = stress level 1
Investment in U.K. BTL = 10
Investment in foreign BTL = 100

Don't mix up somewhere to stay yourself with investments. If you fancy staying in France or Spain a couple times a year, rent somewhere.

AdrianC

"Overseas" is a very, very, VERY big place covering a massive difference in property laws and attitudes. Even saying "probably France or Spain" only narrows it down a bit. If you're not on the ground, and you don't speak the language, then you are a sitting duck for being taken for a ride.

Cakeguts

We have rental houses on a French lease in France. They are managed by a local French agent who doesn't speak English. If you are not local you have to have someone to manage the properties to arrange for repairs and to collect the rent. Youwill also need a bank account in the country and arrange insurance for the properties.

G_M

Please excuse this but ...... YOU MUST BE OUT OF YOUR MIND!


You want to run a business at long-distance overseas, in a country where you don't speak the language, don't know the markett, don't know the local laws, have no idea of the local taxes, and have no contacts or trusted support.


Even setting up a BTL busines in this country would be a major undertaking, and probably unwise, but abroad?



Invest in a balanced portfolio of funds spread across several industries and several geographic regions. Your money won't need constant managment, it will be easy to liquify if you need it, and it will be stress-free.

dilby

Thanks for the help everyone - there's some really good wisdom in the replies here. I had probably been caught up with the romanticism of some of the overseas property tv shows, plus a few sites I'd seen online that claimed to make it easy to remotely manage a buy to let. but I see how rose tinted this is, and you've all managed to talk me out of it! In fact you may have talked me out of property for now entirely; I'll now start researching some of the funds mentioned instead and see how I get on.

Thrugelmir

We've friends who have been trying to sell their French apartment for 7 years. What seemed like a good idea often isn't. They therefore have little option but to continue to use it to maximise the expense they continue to incur.