Quote: (08-29-2011 08:05 AM)youngmobileglobal Wrote:
I know various guys who have bought condos in the following cities:
-Tokyo
-Seoul
-Shanghai
-Beijing
-Tallinn (Estonia)
-Helsinki
-Phuket (house, not condo)
-Bangkok
-Chiang Mai (in negotiations)
Is anyone out there planning on buying real estate overseas as an investment, as a residency, or both?
Yeah I am actually. Australian property is very overpriced, but I love it as an asset overall. I own my place, so I can raise security off the back of that now. The strong Aussie dollar looks like it may stay for a while, so I am looking into buying once a few things drop for me. I have put off buying with all the crap since 2008, but I reckon by next year Ill be ready to pull the trigger if Europe does not implode.
I have two types of property I am looking at, that being holiday homes, rentals. Commercial property is something I am very keen on, that just has to wait a while. None of this includes residence
Brazil - Holiday
There is a massive shortage of housing in the main cities, although the strong Real is hurting. Inflation is kicking in there too, but the economy is strong and growing. The biggest issue at the moment are the laws regarding foreign ownership of land, but also limited local bank finance. At the moment, local Brazilian banks cannot provide local mortgages to foreigners and the mortage market as a whole is very immature. A lot of legislative changes coming in 2013 though which are game changers though and thats pretty much what I am waiting for.
I am looking at Buzios and the immediate surrounding areas in particular, and will offer it as a holiday rental. I fell in love with the place and have been there enough to know its where I would like to own now. Its going to be very seasonal, but if I can cover 50% of the loan in holiday rentals the tax write off at their interest rates actually make it quite cheap to own, so I have done the sums
Its a legal nightmare and collecting rent from a tenant would be a major issue, hence why I have avoided Rio and SP, which would be better investments if I could manage them better. I think though that working through travel agencies would be a different story.
Germany - Frankfurt and Hamburg - Rentals.
Germany is going to be the most stable economy in the EU and there are few limitations with ownership. Its also a rental culture where ownership is very low and many people prefer to rent. Capital appreciation is not extreme, it normally tracks a tick over inflation. But the big thing here is ability to buy cash flow positive property against asset finance with your long rental leases covering the cost of the property over 15-20 years in most cases.
Croatia - Hvar - Holiday
Purely as a holiday destination. Croatia is on the up, but I think its one of the best beach destinations in the world. Weather is good, food is good, bitches are hot and the property is dirt cheap. You can buy 2 bedroom condos for as little as 40k Euro now.
The USA - Florida - Rentals
I have not even been to the USA yet, but have intentions of heading out in June 2012. Property is a steal right now, and you can buy cash flow positive properties for next to nothing. A lot of people who lost homes in foreclosures need a place to stay, so rental returns are very good and in many cases double digit. I think capital values are fucked for the next 10 years, but the US is going to come right eventually and so will the property market. The big thing here is low interest rates and bank finance. With large deposits and security against assets that dont include the property itself, they will throw money at you.
Places I have looked at in depth and wont consider for a while
Argentina - San Carlos de Bariloche in particular as a holiday destination. Argentina though is such a loose cannon and this is a LONG trip for me.
Bulgaria - Will be part of the EU soon enough and when that happens I think they will do well. They are a tax haven too, which has its attractions
Estonia - Tallinn in particular. Prices are simply too high to justify and the returns are very average. This is a problem right across Eastern Europe, with Russia being the worst now.
Ireland - Much the same situation as the USA, although I am less confident about their economy over the next 10 years