buying property

[kobe]

I have around 80K to purchase property with ( as deposit on a mortgage ) - What would be the best way to make some serious returns? My thinking at the moment is either a block of eight or so Flats on a "buy to let" basis or a series of small (cheap) Houses say six or so - ones with a little cosmetic work to do - then resell ( or Flip ) some for profit and thus build up a portfolio renting out others, (I have alittle nest egg aside to put into low key refurbishing and know a good builder/ decorator) --- unless someone knows a better way -- any advice will be welcome

[Dassie]

Property in my opinion is always a good bet but it's a long term project so make sure you have enough to pay the mortgage/ council tax / insurance etc even if the flats cannot be rented out constantly and you have no income.
Have you considered buying abroad where you can get more for your money?

[kobe]

thanks dassie - I have thought about buying abroad but fancy keeping my assests close to hand - I have also been watching those wretched housing programmes and it seems to me that there are more down sides than up sides to buying abroad what with land and building issues being the biggest headaches - what do others think?

[hustle1981]

hi,
it really depends on where you live or more importantly, where your hoping to invest. i'm in the industry and i have found there is a massive call for rental at the moment. renovating properties seem to be very difficult at the moment as everyone has jumped on the band wagon. if you buy to let there are many was to protect you investment. some letting agents will guarantee your income. if then your tennant leaves and you have no one else to move in then don't worry either. you can insure against that too. buy to let is not a get rich quick scheme. it is a long term investment.

[ali_alic]

Hi Kobe - we own 3 properties here in the UK but decided to buy the 4th one abroad. We, like you, were sceptical about it so we took the safe option and bought in the USA. No lauguage probs (unless you want to be picky!!) no land grabs, no builder probs (we bought off plan) and a management company in place, on site, to look after it. But yes, property is the way to go - despite the constant wails of 'interest rate increases' and 'property crashes'

[kobe]

ali-alic :-could I ask has your USA property risen in value in the time you have had it - I know they are comparatively cheaper than in this country ( bloody government ) but will the property make you money - and do you rent it out as a holiday home ??

[ali_alic]

We bought it off plan in July for $277,500 an din September they were selling for $296,00. It is due to be finished in Nov/Dec, all in all they are expected to rise to over $320,000. However if we sell withing 1 year and a day there is a hefty penalty re tax wise -so we are renting it out. We have a management team in place that are on site and they will go all the renting out etc. WE worked it out that the place will need to be rented out for 32 or the 52 weeks for us to break even - apparently they see no problem with that. The managament co are on a percentage so it is in their best interests to get it rented out as much as possible. They allow us to visit for 2 weeks in the peak period and 4 weeks in the off season. Sounds a bit off as we are supposed to be the owners but when we stay in the house they're not earning any money but still maintaining the house and grounds- so you can see their point. So yes, in answer to your question. It is purely as a rental home, if it makes money that way then all well and good, but we are in it mainly for the rise in equity. Contact MRI - they do wicked inspection trips all over the world. www.macanthonyrealty.com and NO pressure to buy - brilliant.