SteveR Posted November 3, 2008 Share Posted November 3, 2008 Mark my words, property in the UK has a long way to fall yet. The biggest over-inflated bubble, caused by 10 years of so-called 'boom', over in just 12 months? Not likely. Quote Link to comment Share on other sites More sharing options...
mr lover Posted November 3, 2008 Share Posted November 3, 2008 I have a very reliable contact in Bulgaria, pm me if you are intrested/ want further info Quote Link to comment Share on other sites More sharing options...
SupraAyf Posted November 3, 2008 Share Posted November 3, 2008 Somewhat disagree with South Africa... with the new president coming in (Zuma) things could potential get a lot worse over the next few years. Yep, I stand corrected Graham mate. I came across 50 ex-South African Defence Force guys today and they did say South Africa has gone down hill massively - there were lots of pi$$ed off guys amongst the ranks Quote Link to comment Share on other sites More sharing options...
The Raven Posted November 3, 2008 Share Posted November 3, 2008 Gents i give you student renting. I currently rent a house in canterbury kent, the house is let though a student letting shop and the returns are out of this world 315 per calander month per student, Needless to say if u wack a wall here and a room there most houses will brake into 4 rooms. The house prices stay steady due the the rental income. Any one wants any advise on this pm me. Quote Link to comment Share on other sites More sharing options...
Terminator Posted November 3, 2008 Share Posted November 3, 2008 I think this property slump is just a natural readjustment, to bring prices back inline with the historical long term trend. These adjustments happen from time to time. If you are a long term investor, it will not hurt you. If your bought at the crest of the wave of inflated prices expecting to cash in quickly,you may be burned. I fell that this slump will have a slightly slower recovery than others I have survived. The market is driven by the first time buyers. The silly mortgage deals of the last few years have thankfully gone and now lenders are expecting a considerable cash up front deposit before lending a more sensible percentage of property value. Three years ago I went along to a property investment seminar, based around buying off plan. I really did not feel comfortable with the package, there were too many assumptions made by the property company. I did some additional research and pulled out. I was exceedingly lucky to get my money back, around £2.5K, but it took the threat of TV publicity to get it back. I was looking at markets last week, and stumbled across some very unlucky people who had lost £10k's buying flats off plan in a wonderful modern development, from the same company. The fundamental problem was no one wanted to rent in the area of the development, because it was saturated with rental property. These investors had not done enough research and were sucked in by the pitch to make big and easy money. They are now stuck with paying the mortgage payments, with no rent to help cover costs. Some investors bought 5+ properties shelling out £50K or more, not only have they lost the £50K but they can't afford the five mortgages on the properties they bought. Some have no option but to sell the properties but at very low prices so they also have to sell their home to clear the debt. I feel sorry for them as they got sucked in buy the riches dream. If investing in property make sure you can cover periods where the property is not let. It is far better to be very cautious in your calculations that way you are less likely to suffer a big financial hit. Tenants can sometime be hard to replace, so budget for several months of no income with each tenancy period. If at the end of one tenancy you roll straight into another, you will have some extra finance. I work on nine and a half months let out of twelve. I know it is one of the oldest clichés, but in any form of investment, if it sounds too good to be true, it is. Edit Before considering student rental check out your local council HMO (House of Multipul Occupation rules) £20K fine for non compliance. Each local authority is different some insist on every letter of the law ie all doors fire doors, sinks in every bedroom etc, others the minimum, it can soon mount up to quite a bill. You can get unlucky and get stung, an end of year party can set you back big time. Get legal advice on the wording of the contract. If you have to go to court to get the rent, don't expect sympathy from the courts, you are now a big bad landlord. What is a couple of grand to you, when the magistrate is looking at a penniless single mother to be( been there, done that got stung! ouch!) Don't rely on students to sort out council tax, once they are gone the council only has your name against the property, so guess who will pay the bill. Quote Link to comment Share on other sites More sharing options...
grahamc Posted November 3, 2008 Author Share Posted November 3, 2008 Yep, I stand corrected Graham mate. I came across 50 ex-South African Defence Force guys today and they did say South Africa has gone down hill massively - there were lots of pi$$ed off guys amongst the ranks Its such a pity, as it is such a beautiful country!! Just the country stands on the brink of being able to re-make the country (the way it should be) or going like Zimbabwe, next few years will tell a lot. I jus hope like hell, as the missus still has family out there... I think this property slump is just a natural readjustment, to bring prices back inline with the historical long term trend. These adjustments happen from time to time. If you are a long term investor, it will not hurt you. If your bought at the crest of the wave of inflated prices expecting to cash in quickly,you may be burned. I fell that this slump will have a slightly slower recovery than others I have survived. The market is driven by the first time buyers. The silly mortgage deals of the last few years have thankfully gone and now lenders are expecting a considerable cash up front deposit before lending a more sensible percentage of property value. Three years ago I went along to a property investment seminar, based around buying off plan. I really did not feel comfortable with the package, there were too many assumptions made by the property company. I did some additional research and pulled out. I was exceedingly lucky to get my money back, around £2.5K, but it took the threat of TV publicity to get it back. I was looking at markets last week, and stumbled across some very unlucky people who had lost £10k's buying flats off plan in a wonderful modern development, from the same company. The fundamental problem was no one wanted to rent in the area of the development, because it was saturated with rental property. These investors had not done enough research and were sucked in by the pitch to make big and easy money. They are now stuck with paying the mortgage payments, with no rent to help cover costs. Some investors bought 5+ properties shelling out £50K or more, not only have they lost the £50K but they can't afford the five mortgages on the properties they bought. Some have no option but to sell the properties but at very low prices so they also have to sell their home to clear the debt. I feel sorry for them as they got sucked in buy the riches dream. If investing in property make sure you can cover periods where the property is not let. It is far better to be very cautious in your calculations that way you are less likely to suffer a big financial hit. Tenants can sometime be hard to replace, so budget for several months of no income with each tenancy period. If at the end of one tenancy you roll straight into another, you will have some extra finance. I work on nine and a half months let out of twelve. I know it is one of the oldest clichés, but in any form of investment, if it sounds too good to be true, it is. Edit Before considering student rental check out your local council HMO (House of Multipul Occupation rules) £20K fine for non compliance. Each local authority is different some insist on every letter of the law ie all doors fire doors, sinks in every bedroom etc, others the minimum, it can soon mount up to quite a bill. You can get unlucky and get stung, an end of year party can set you back big time. Get legal advice on the wording of the contract. If you have to go to court to get the rent, don't expect sympathy from the courts, you are now a big bad landlord. What is a couple of grand to you, when the magistrate is looking at a penniless single mother to be( been there, done that got stung! ouch!) Don't rely on students to sort out council tax, once they are gone the council only has your name against the property, so guess who will pay the bill. Precisely the people/companies I want to avoid!! Its the same type of people I spoke of earlier, offering the earth... but we did our research and asked a lot of questions, trying to get the full story. Some very good advise though, very good..... I am not in this for the short term, everything is for the long term. Quote Link to comment Share on other sites More sharing options...
Guest sunnyG83 Posted November 3, 2008 Share Posted November 3, 2008 onto house number 6 in India and will be starting a new Housing Estate Development for NRI's in the next two years but i have bought the plot already as the market is growing at an alarming rate. Dont worry i also buy in the U.K. too Quote Link to comment Share on other sites More sharing options...
The Raven Posted November 3, 2008 Share Posted November 3, 2008 Edit Before considering student rental check out your local council HMO (House of Multipul Occupation rules) £20K fine for non compliance. Each local authority is different some insist on every letter of the law ie all doors fire doors, sinks in every bedroom etc, others the minimum, it can soon mount up to quite a bill. You can get unlucky and get stung, an end of year party can set you back big time. Get legal advice on the wording of the contract. If you have to go to court to get the rent, don't expect sympathy from the courts, you are now a big bad landlord. What is a couple of grand to you, when the magistrate is looking at a penniless single mother to be( been there, done that got stung! ouch!) Don't rely on students to sort out council tax, once they are gone the council only has your name against the property, so guess who will pay the bill. My house isnt HMO Hence i dont fall foul of these rules. My advise is to let though a large agent that takes care of all these issues. The only other issues are when you start going over 5 rooms and then you start needing two sinks and cookers bathrooms and such. http://www.dayms.co.uk Should answer alot of your questions Quote Link to comment Share on other sites More sharing options...
mkirby Posted November 3, 2008 Share Posted November 3, 2008 My cousin works for a guy who bought all the rights to build on one of the cayman islands, so far the land has doubled in price, its pretty cheap as well if i had some money spare i would have bought a plot. Mike Quote Link to comment Share on other sites More sharing options...
grahamc Posted November 3, 2008 Author Share Posted November 3, 2008 My cousin works for a guy who bought all the rights to build on one of the cayman islands, so far the land has doubled in price, its pretty cheap as well if i had some money spare i would have bought a plot. Mike details Quote Link to comment Share on other sites More sharing options...
mkirby Posted November 3, 2008 Share Posted November 3, 2008 details I think he's in dubai at a property show but i will post up his contact details tomorrow if anyones interested Mike Quote Link to comment Share on other sites More sharing options...
grahamc Posted December 1, 2008 Author Share Posted December 1, 2008 We have finally started to make a move on this. Buying 3 properties in South Africa, to join our other 2. Yep, I stand corrected Graham mate. I came across 50 ex-South African Defence Force guys today and they did say South Africa has gone down hill massively - there were lots of pi$$ed off guys amongst the ranks Still seems like a good idea for us, so thank you for the push ^. Also looking at 1 in bulgaria. More to come in the new year. If anyone wants details, please let me know. We also have a very good management agent in South Africa. She manages our current 2 properties in SA, and we have never had an empty month and full checks are done on all new clients. Quote Link to comment Share on other sites More sharing options...
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