First, please allow me to introduce myself
My Name is Andrew, 24 and Im interested in property. I have been researching options recently, come up with a few different ideas and now I need to speak to people about their opinions and listen to their input.

Recently ive been looking at Leaseback schemes in France, because I speak a little French and the attraction of guarenteed rent.
From what I have read, the Uk Buy to Let market is now a lot more difficult than it used to be, but money can still be made.
Ideally, Id like to invest in the Uk as id feel more comfortable - but if there is money to be made elsewhere, then Im open to that - I have a moderate attitude to risk.

I have just been browsing around these forums and if it helps for peoples suggestions, then I live near Peterborough.

Can anyone offer any input on whether the UK is the right place for me, or if i should be looking further afield?

Thanks
Fatman

Hi Andrew

With that kind of posting you will have an influx of responses from agents promoting many different options ot you. You will end up totally confused as you will get suggestions to invest in all the far flung corners of the globe from Egypt, Turkey, Bulgaria, Morocco, Brazil, Panama, The Caribbean to name but a few.

What you need to do is weigh up all your options and look at your investment strategy. What is the reason for investing, do you just want profit? Do you want something with yield potential? Are you looking at Capital Growth, are you looking for second home or holiday home?

What ever you decide on ,you need to make sure you have a clear exit strategy. Who is your end user going to be? Who will buy it off you in years to come? If you cant work this out then dont buy it! Its that simple.

Do you need finance? If so look very carefully because some of the finance packages available only offer as low as 40% and very high interest rates, if they are offered at all. For many of the overseas desitinations, finance is just not available to non residents.

My suggestion to you is do your research. Many investors on here have invested in many countries and have done it sucessfully. Choose a good Agent with a good reputation. Again ask around on the forum. I am sure a number of the investors here can point you in the right direction. Ask them which agents they used and whether they were satisfied?

Dont make any hasty decisions and dont part with your cash until you are completely satisfied.

Good luck.

Lisa

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Thanks for your reply.

As i said, the leaseback scheme seemed good as it has guarenteed rent.
Ideally i would like something with capital growth but am open to all options.
I perhaps would want usage for a couple for a couple of weeks a year and a solid exit strategy is a must.

If you have any tips of what other things i should research, that would be great

Andrew

Hi Andrew

Leasebacks and guaranteed rentals often appear to ge good because they appear to keep risk to a minimum, however be careful as quite often the purchase price is hiked up to compensate for the rental, and often the yields are low in comparion to what you could achieve outside of the scheme.

Rental pools and profit share schemes are a better option as they often can give a much higher yield and although nothing is guaranteed you can certainly find quality investments where the figures stack up against financing options.

Look for a market that is in the expansion phase of the market cycle but look at local economy and GDP too. This will give you an indication as to potential end users and ultimately buyers of your resale property.

Also consider local tourism, and feasibility of actually getting there. If you are planning on using the property yourself, this will be of increased importance.

As I said before, ask questions and talk to other buyers. there is a wealth of knowledge on this forum........true recommendations are a great start to your research.

Always use a laywer to carry out your due diligence and complete your purchase process and always use a reputable and honest agent.

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Thanks again!

Yeah i have been noticing that developers often hike prices for leasebacks.
I dont have a problem with not making 100% rent if I can make some capital growth and have some use myself.

Ive just been reading about the Rental pools and they seem like a good idea on paper.

Ive also been looking at Turkey, Bulgaria and now Egypt.

Do people have any comments on these areas, after seeing my requirements?

Andrew

Maybe you should sit on your hands for the next few months and see what happens. Alternatively if you like the UK market try and pick up a repossession.

Tony

There is excellent money still to be made in the UK you just need to be careful and have a good strategy.

There are great discounts to be had at the moment because a lot of people sit back but we are firmly in a buyers market which you can capitalise on.

Stay away from new builds, off plan, new apartments and aim for established terrace houses or semi detached and good first time buyer homes that let easily.

You just need to research and get some guidance because mistakes in this market can be costly.

Thanks for the reply - how/what should i research?
And for the guidance, thats why I joined this forum

Hi Fatman

Good move - forums !

With regards to research it's hard to tell you in one post because i don't know where you are at and there is a lot to consider.

I would be looking at areas close by that still have houses for sale at the "lower" end of the scale and check the rental prices in the area to see what yields are achievable.

A lot of areas especially in the South are very hard to get to "stack" because the yields are not there. All our clients who we build portfolios for are based down South and the properties we supply them with are in the North because they stack better.

UK is good but it needs to be long term for capital appreciation returns, in the short term this won't happen because of where we are in the cycle. However building a portfolio now and in the next year or 2 put you sitting well for the next upturn and there are bargains around at the moment.

Hope this may help a little but keep asking and researching areas/prices in the area/rental prices/rental demand/etc

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if the UK property market kepts going the way it is, you will find good value and also get into the property field pretty easy, it will be a good start for you, kept it up, its a good business if you move about well, also wait and see how the market plans out over the next few months