Is there better value overseas for UK based property investors?

[nmb]

One side effect of the recent tax changes for UK property investors could see more investors looking overseas for their next tranche of property. Is there now better value in some of the overseas markets for UK based property investors? Has the Chancellor just priced many landlords out of the UK market?

The fact is you cannot keep milking the UK property sector to cover budget shortfalls while playing to the general public with a “bash the rich” mentality. The idea that all buy to let investors are “rich” is incorrect and why should entrepreneurs shoulder the burden of unfair property tax increases?

 

[PropEx]

Not only now is there better value in overseas markets, but there has been for quite a while. Like I have said a few times on here, I buy properties in the American wholesale market, so I am getting them at up to 50% discount and my yield is on average 18% net. I have made capital appreciation as soon as I have bought it. The American property market is so much more dynamic, for example last week I bought a discounted mortgage note for $12,000 and sold it over the weekend for a $4,000 profit, which would be impossible in the UK, as the market doesn't exist. It still amazes me why people persist on sticking rigidly to only buying in the UK, where admittedly the capital appreciation can be good, the yield is usually nothing short of pathetic.

 

[nmb]

Sometimes it is easy to get blinded when looking at property markets and decide to stay at home. While each individual market has its own characteristics, investment strategies used today will work right across the board. Why are UK investors not a little more adventurous and now looking towards the US?

 

[PropEx]

Sometimes it is easy to get blinded when looking at property markets and decide to stay at home. While each individual market has its own characteristics, investment strategies used today will work right across the board. Why are UK investors not a little more adventurous and now looking towards the US?

I'm really not sure,(apart from the obvious reasons like, "they want to keep an eye on it") but it is certainly their loss.

 

[nmb]

One issue which may be holding back some investors looking overseas is the ongoing weakness in sterling. This has significantly reduced the spending power of UK investors over the last few months. Are we now looking at worst case scenario in the event of a UK exit from the European Union? Or is there worse to follow?

 

[PropEx]

One issue which may be holding back some investors looking overseas is the ongoing weakness in sterling. This has significantly reduced the spending power of UK investors over the last few months. Are we now looking at worst case scenario in the event of a UK exit from the European Union? Or is there worse to follow?

Even with the pound being weaker, you can still get a decent property that pays about 380 quid a month for about 35k