Buying abroad - First Time & Student

Boyle · 12 April 2007 at 11:20PM

Hello,
I'm a 19 year old Student. I was recently chatting my brother(who has several properties - so he will be able to help me along the way) and he mentioned that it would be a good idea if i was to look into buying a property abroad. He said there was the possibility of buying a house for around 40-50k abroad, this is where i said "sure I'm a student how could i afford this!.." He said that if i rented it out and made enough money from the tenants living in the house that it would pay the mortgage on the house. He also mentioned something along the lines that if i couldn't afford to pay for the house that i could have my father or brother's name on it as a namesake stating that they would pay if i was unable to meet the payments.

I am wondering if anyone here will be able to provide me with some advice and guidance and where about to look for information regarding this, as i have little or no knowledge about this.

Any help is much appreciated!
Thanks

Generali · 13 April 2007 at 12:29AM

Tough q:

1. Most coutries in Europe have strong laws about rents that can be charged, eviction &c. It's hard to make a profit.

2. If you're a student then I guess you don't have much in the way of savings - you'll find things tough/impossible if you have a financial set back.

3. Most European banks require a big deposit.

My advice - if you want to be rich, get a good degree and get a job as a trader or fund/hedge fund manager in The City. Less DIY that way.

Boyle · 13 April 2007 at 2:23PM

Thanks for advice, sadly I'm not doing a degree in anything related to that - I'm doing Computer Science. You said a financial set back that is where i was wondering about this namesake where i have someone else name on the property saying that if i am unable to meet the payment they will pay it.

You don't think it would be financial possible to buy a property abroad then? Any idea of how much savings would be required. Or is it like a % of the property price.

Thanks

Melissa177 · 13 April 2007 at 2:28PM

Thanks for advice, sadly I'm not doing a degree in anything related to that - I'm doing Computer Science.

I know tons of CompScis who work in the City - not all programmers either!

typeractive · 13 April 2007 at 3:50PM

Hi Boyle,

I'm sure you've probably thought of this, but why not consider a property here in the UK - just a different area. You could probably find a property of certain value, and having the experience of others to help, you could spend time together sorting things out on weekends and project managering it.

Good to see someone so young wanting to get on the rung and stuff. One tip I would give though is, don't let it overcrowd your time at university. Make time for your studies and enjoy yourself. Anything else is a bonus in my opinion.

vishpatel · 13 April 2007 at 4:09PM

Property isn't the only way to invest. In fact its fairly difficult and costly relative to equities, and some other investments.

Open up a shares ISA, or a Self invested pension.

This is failry typical of people wanting to run before they can walk... and definitely a warning about the property market IMO.

Generali · 13 April 2007 at 4:14PM

Boyle wrote: »

Thanks for advice, sadly I'm not doing a degree in anything related to that - I'm doing Computer Science.

Good front office IT Wallah with a few years' experience, contracting rates up to ~£1500 per day. £800 per day easily.

Boyle wrote: »

You said a financial set back that is where i was wondering about this namesake where i have someone else name on the property saying that if i am unable to meet the payment they will pay it.

If you have someone that would meet the payments if you can't for some reason, you're in a pretty good position regarding risk. It certainly removes a lot of the potential downside!

Boyle wrote: »

You don't think it would be financial possible to buy a property abroad then? Any idea of how much savings would be required. Or is it like a % of the property price.

I think in most European countries, a 25%+ deposit is required. I am generalising though. I had a very speculative chat with HSBC a few years back and they said they could put me in touch with their local bank in the country I was researching. You could do the same thing.

If you're going to do this (and I wouldn't but it's your choice) do your research very carefully. Make sure you understand local property law - one Spanish region I understand can pinch some of your land, build a road on it and then charge for for increasing the value of your property!

prudryden · 13 April 2007 at 4:25PM

It doesn't take much knowledge to be a fund manager these days - just a good bull market.

Boyle · 13 April 2007 at 7:49PM

typeractive wrote: »

Hi Boyle,

I'm sure you've probably thought of this, but why not consider a property here in the UK - just a different area.

Is it not alot more expensive to buy in the UK than abroad? This was the impression that i was given.

vishpatel wrote: »

Open up a shares ISA, or a Self invested pension.

This is failry typical of people wanting to run before they can walk... and definitely a warning about the property market IMO.

I dont know what ISA or Self invested pension are but i will look into them - thanks for making me aware of them. I dont want to run before i can walk i would like to jog

As regards to good jobs in Computers - I need a lot of experience before i can make a large salary which means i would be in my early 30's more than likely. Or is this me being naive.
So basically what you are all saying is that there is little hope for me at this present time without a large financial backing.

BettiePage · 13 April 2007 at 8:52PM

Boyle wrote: »

So basically what you are all saying is that there is little hope for me at this present time without a large financial backing.

Even with large financial backing, nothing is ever guaranteed.

Generali · 13 April 2007 at 11:07PM

prudryden wrote: »

It doesn't take much knowledge to be a fund manager these days - just a good bull market.

Indeed. As Wozza has it, "It's only when the tide goes out you can see who's been swimming naked." We're having a Spring tide, it'll turn.

Buying abroad - First Time & Student

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