Property tv
Thread Status:
Not open for further replies.

50k GBP To Invest in Overseas Property

Discussion in 'Buying Overseas Property' started by aaron, Dec 14, 2006.

  1. aaron

    aaron New Member

    Hi Folks,
    I have been reading some of the posts here with great interest. I am just about to complete on selling my buy to let property in London and I will have £50k of equity that I need to invest before April 2007.

    I know this is a bit cheeky - but I want some free financial advice on buying overseas property. I want to spread the funds across a few properties if possible - which I think it should be with some off plan investments. Reading some of the posts here I am being tempted by some of the property in Morocco that is coming up. There are also some property deals in Turkey that look attractive from a low money down perspective. But I know nothing about borrowing in these overseas property markets.

    Help Please.
    Aaron
     
  2. Investy

    Investy Senior Member

    Arron, the first thing to know about foreign financing is that every agent will imply its easy as they want to sell u a property, however it isnt so.

    Essentially they will lend typically using 40% of your take home income. This 40% must cover all mortgages including the new one.

    Also the property and legal adequacy are key. Many many developers dont offer adequate financial or legal grounds.

    Some investors sign a sales agreement 'purchase subject to suitable finance'.

    My guidance is buy the best property you can as this will underpin the mortgability.
    In my case - Morocco I went for the Kings 'Plan Azure' sites as they are the Government planned and backed entities. I went for Saidia which will have the biggest marina in the Med and eclipses all other resorts Im aware of. Also only a 3 hour flight and many celebs are buying here.
    Easy to rent year round given many onsite rental agents and 3 18 hole golf courses plus 30000 guest per week to the 11 5 star hotels (these folk will be exposed to the limited private property for rent).

    Non status mortgages up to 60% (possibly 80%) of the property value is supposedly available.

    Turkey - Ive been, its ok but nothing special and further away than Morocco and not generaly seen as a winter destination so rental in winter are no good.
     
  3. aaron

    aaron New Member

    Investy,
    Thanks for the advice. You are very pro Morocco and I can definately see the attraction.

    Can I ask where else you might invest as well as Morocco. Someone steered me towards property in Thailand in another forum. Just wondering where else (apart from Dubai).

    Thanks
    A
     
  4. TH4S

    TH4S New Member

    Turkey is very special to me,;)

    Aaron,
    You can still buy propertie's in turkey for £50k.some are actually furnished.or maybe go for off plan,
    There are still some great deals to be had.

    Turkey - rental in winter can be good depends who or what market you would be aiming at,Long term rentals are far better than short term,

    Should you need to borrow money try contacting the H.S.B.C.there is a link Here .HSBC - Turkey
     
  5. Rixxy

    Rixxy New Member

    There are many ways you can look to invest your money but you firstly need to work out what you want to do with the proeprties. Are you wanting to have personal use or leave it solely as a longer term investment. Then you need to thoroughly research all likely areas. For faster growth then an emerging market such as Morocco is good and whilst I appreciate the views above re Saidia, if you then wanted to resell you will run into difficulties - it seems a great development but at the moment there is no actaul way of getting there and it is very close to the Algerian border in the middle of no-where. If you are ok with a self enclosed resort then fine - be aware you will be competing with hundreds of others if and when you come to sell. Alternatively a regenerating bustling town such as Tangiers offers a wide variety of prospects frontline units with fabulous sea views and a wealth of foreign business puoring money in. Commercial units are also a good investment. Tangiers is vying for the 2012 world expo and with their free trade Marina shortly due to open, the investments are endless. Certainly a sound investment there. Alternatives are secure mature markets. Spains Costa del Sol whilst going throught the horrors now will always be a safe and secure mid to long term market. If you find the right property you can purchase with very little deposit and providing you can sit on it for a few years will find it become lucrative. And yes, I deal in both markets!
     
  6. FlexiBox

    FlexiBox New Member

    Hi Aaron,
    I agree with the overview on Morocco that a lot of people seem to have on these forums. Don't know enough about Spain.

    One area I don't see a lot is investment property in Australia and it is something that I have started to research.
    Regards
    Flex
     
  7. propertyinvest

    propertyinvest Active Member

    Aaron

    I know how you feel i had the same problem didnt have any knowledge about investing overseas, to be honest i learnt the hard way , trail and error.Everything is going great now but it wsnt easy. The problem i found everyone has a opinion one investment might suit 1 person but not another thats why i feel by only listening to your self can be the best way, its ok to take advice but try and make your judgements on what you feel is best , do what you feel comfortable with, but on the other hand being in your comfort zone i think is not a good thing, you never grow.

    I had around £50,000 at the start i went for a 3 bed house in spain, which didnt turn out to be the best investment but god for going away.Also i bought in Dubai,this is going fine but not ready yet.

    I just invested in Morocco , wasnt much capital but i feel this is the best investment so far.

    Anyway good luck
     
  8. aaron

    aaron New Member

    Thanks to all for replies and advice. Seems like there is a lot of pro Morocco people around here. I think I have my answer with regards to where to start.

    PropertyInvest - you mentioned;
    Sounds interesting - especially the low money down part! I want to make my capital go a long way. Can you tell me which development / area you have invested in please.

    Thanks Again
    A
     
  9. Investy

    Investy Senior Member


    But Saidia is the first Government backed 'plan Azure' project of which there will be 6.
    The Plan Azure label will become synonemous with quality and exclusivity. Dont forget these are the 6 projects that the King is involved with, indeed he is forever on site at Saidia hen pecking the builders.

    With the Plan Azure sites very significant infrastructure accompanies them.

    In terms of resale:
    1) There will be 6+ on site COMPETING agents where as the stand alone non Plan Azure sites will have to rely on outside UK and Spannish agents which are involved with hundreds of developments

    2) No further building is permitted around Saidia for 15 years

    3) The stand alone developments will all be in competition all pretty much the same, where as the Plan Azure resorts will be the Ascots of the Moroccan property scene.


    Issues such as health facilities are vital. Saidia will have a very large ON SITE exclusive small hospital. The stand alone resorts will have very very limited facilities so tourists will have to take there chances at the local Moroccan hospital.


    GOLF:

    Ok many if not all the one off developments mention being close to or next to golf. THIS ISNT THE SAME AS 'IN' THE GOLF.
    Saidia owners AND THIER TENANTS get to use 3 top courses which are on - site. They can litteraly tumble out of bed onto the greens - this is a crucial differentiator. Also owners and tenants get to play for 15 euros.
    You will find many smaller developments mention golf but in the end nothing will be delivered.

    SELF CONTAINED:

    Many tourists like the idea of a vast self contained safe proposition. They have busy stresful lives so the thought of touring crowded hot Moroccan cities in search of chintzy ornaments really isnt important.
    They want to roll out of bed, take coffee on thier terrace whilst thier kids play on the private beach in complete safety. They want a safe sanctuary away for hussle and bustle.

    Dont forget Saidia will have over 20 independant restaurants set around the largest most impressive marina in the Med.


    CHEAPER ALTERNATIVES

    Buying in the stand alone non Plan Azure sites will be cheaper, but at what cost?
    I like to eliminate as much risk as possible so I took the decision its better to be on the Royal backed premium brand developments. Indeed many more exclusive resorts in Spain started more expensive but now the returns are much higher and rental so much more robust than the myriad of small middle of the road developments all competing for attention.


    SUMMARY:

    For me the Plan Azure label will set apart the 6 Royal resorts and on - going quality and maintenance will be assured. Capital growth and rentals will be clearly reflected. Crucially I will be able to sleep at night better.
     
  10. propertyinvest

    propertyinvest Active Member

    Sounds interesting - especially the low money down part! I want to make my capital go a long way. Can you tell me which development / area you have invested in please.

    Thanks Again
    A[/QUOTE]
    Aaron, thats why its good to have these forums to share ideas, let people know what was good and bad.

    Here is the link to the development ,area etc. They are very helpful , very honest and up font with everything.Let me know what you think

    Morocco - Tangier - Tanjah Beach & Golf Resort
     
  11. aaron

    aaron New Member

    PropertyInvest,
    Thanks for the link. I have read about the Tanjah development on some other forums. I have to say a lot of what I have read is negative. Things such as it is over-priced, the developers are a bit clueless and the recent inspection trip was a bit of a sham. Have you invested here? Did you go on the trip?

    This might be idle gossip or an attempt for one developer to bash another's reputation but in my experience - a lot of truth comes out when people have a negative experience.

    Thanks
    A
     
  12. propertyinvest

    propertyinvest Active Member

    Hi, no problems

    I find that every development i have ever read about had good and bad reviews, makes it really hard to make a decison,I didnt go on the trip but a colleague of mine meet the developer and was very impressed and he a is very sucessful property investor.He bought there as well . I think maybe because planning permission wasnt granted there was problems, but that has just gone ahead and the documents are being recieved this week , hence why the prices are going up 20% as soon as the paper work is avalible.There is no dark holes and everything is fine with this development. I hope :)
     
  13. Rixxy

    Rixxy New Member

    The trick is to check any development for legality. The king is not allowing ANY evelopment to go ahead willy nilly. To apply for planning permission to build is a long process and is all looked at by the king and his ministers to ensure there is no overbuilding. This has in some areas for example around Marina Smir resulted in a curb on further development which will lead to price increases.

    The Moroccan government is not stupid, one cannot allocate a certain area for curbed contolled development and tehn allow the remainder to spiral out of control! Providing licences and guarantees are in place you have no problem. Good luck!
     
  14. Kevin 125

    Kevin 125 New Member

    Hi Investy,

    Do you have a link so I may take a quick look?

    Thanks and have a good Christmas.
     
  15. The Soup Dragon

    The Soup Dragon Senior Member

    Aaron

    If you are looking to invest off plan in Morocco with low proportion due up front then you should consider Fadesa. They have two or three projects on the go and others in the pipeline where 30% is due before completion and can be spread over the build period. One development they launched 3 or 4 months back was (near Tangier) where prices came in about the £50k mark. It may meet your criteria if there are any more properties left. With Fadesa you have the comfort of knowing it is Spain's 2nd biggest developer building your property, so chances of build not being completed are reduced. Some smaller developers will provide bank guarantees, but don't assume that the guarantee will cover every eventuality. Its much like insurance back home, it only covers certain events and insurance with one company is not necessarily the same as another.

    On Saidia, the accessibility mentioned earlier is a red herring. This resort is being built and there is nothing else of note nearby. Therefore accessibility is poor, but that is changing. Saidia will not be complete till the end of 2010, though I expect several budget airlines will be flying there before then. (Rynair, Atlas Blue and a new joint venture between Air France and Transavia all intend to fly there in the next year or two. Air Berlin, which has 20 plus routes to the further flung seaside resort of Agadir will likely follow suit.) Property in Saidia is more expensive than stand alone resorts, but still within your budget using Moroccan mortgage for leverage. Fadesa, Tassa and The Greens may be worth a look in Saidia.)

    Useful links for Saidia:
    Fadesa l Apartments & Villas in Spain & Morocco - 30% deposit can be spread over build period. You can negotiate payment terms with them..
    Overseas property investment forum - TotallyProperty.com - Property Logic. 40% deposit and will drain most of your budget.
    Grupo TASA - Tasa - Good luck with this one as their website was in Spanish last time I looked.

    On Turkey - mortgage market is in its infancy with mortgages only being introduced a few months ago. HSBC are offering interest rates of around 20%. If interest rates were lower there I might consider Turkey further. Rental season there depends what your target market is and how well your property is located. If you are going for short term tourist lets then tread carefully as many tourist areas are quiet for all but the summer months. Others will have researched this more closely and be better placed to advise where you might consider should Turkey interest you.

    Nobody has mentioned investing in closed funds as a route to investing abroad. The returns here can be very good (double your money in 2 to 4 years) as they tend to buy land, get planning permission, build the property then sell off plan. This means you are profiting from more stages of the development process. It is also simple. Once you have identified and researched the funds you put your feet up and leave the management to the fund provider. Its a very simple way to invest abroad and shares in the fund can normally be placed into SIPP or ISA if you chose. Most funds are run off shore in the Channel Islands (so profits can be maximised), so fund administrators in Guernsey, like Bordeaux Services, have details of those running such funds. Down side is your money being tied in and provides no leverage. (Typically money tied in for 5 years, though it is possible to sell your stake if stock broker can find a buyer.)
     
  16. The Soup Dragon

    The Soup Dragon Senior Member

    Hi totallyproperty

    The term 'closed' is used as the funds can not normally be purchased once subscription is complete. The fund normally runs for a pre-determined period at the end of which all assets are expected to have been sold and profit, together with original stake, redistributed to the fund members. Link beneath is for Bordeax Services. They administer a few funds for areas I'm interested in, such as Montenegro and the Baltic States.

    Bordeaux Services (Guernsey) Limited

    It is worth noting that many of these funds will state in their literature that a high minimum investment applies (frequently 100k Euros.). However, minimum investment is normally at the Director's discretion and you will have a good chance to get in with considerably less.

    Things to consider when considering such funds include:
    - Track record of those running the fund.
    - Strategy being applied by fund manager. (What countries are they investing in? Are they tourist or commerce focussed? Is target market for selling residential property to locals or otherwise?)
    - Renumeration of fund managers etc. Better if they receive small amount during the term of the fund and make their money from fund being successful.

    You'll probably realise from description above that 'Entry level' doesn't really apply. Everyone that subscribes before the fund is opened is buying in at the same price per share. (The bigger your stake the more shares you get.)

    My view is that normal stocks and shares that invest in property carry the risk that the market value of the stock does not mirror the value of the assets held. I feel this is especially so when interest rates are rising and there is less money available for investment. You can mitigate for this risk by investing in closed funds. I've invested in the Oxford Property Development Fund. It is focusing on providing good quality accommodation for local work forces just outside the main cities in Estonia and Latvia. Their economies are going from strength to strength, so even if the UK were to enter a recession my returns on this investment should not be affected (global recession and increased CGT aside.)
     
  17. aaron

    aaron New Member

    Wow,
    This forum is great. I never expected to get this level of advice - and for free...A big thank you to all of that have taken the time to write such detailed posts.

    I have pretty much decided where I will be investing and in which development. I am sorry to say it won't be in Morocco - only sorry because most of the advice given to me is very pro property investment in Morocco. I am just a bit risk averse for my first big overseas property investment - so I have chosen a more established market. The development is also very close to completion - I have seen the pictures and am planning an inspection trip in mind January.

    I will come back and update this thread once my reservation has been paid and gone through. Apologies for being a bit aloof but there are only a couple of units left and I would prefer to have things signed and sealed before discussing.

    Thanks again for the great advice.

    A
     
  18. TH4S

    TH4S New Member

    Turkey Most Popular Emerging Property Hot-Spot
    Press Releases - 24 Oct 2006
    Currencies Direct, the UK’s number one non-bank provider of international payment services and commercial foreign exchange, has today released its first ever Global Emerging Markets Index. The index, based on the number of foreign exchange transfers undertaken by Currencies Direct during October sees Turkey leading the way – with Bulgaria and Dubai not far behind.

    The rental income generated by the estimated 25 million tourists that flock to Turkey every year is encouraging investment-savvy Brits decide to ignore recent fears over terrorism and buy property in this rapidly developing market.

    Currencies Direct has observed that most of its clients buying in Turkey are looking at the Aegean and Mediterranean coasts. Over the past eighteen months, the number of Britons owning property in Turkey has jumped by more than 200% and the relaxation of restrictive property legislation has also helped to open up the market, with foreigners now being able to obtain a local mortgage.

    The below table outlines this month’s top ten Emerging property hot-spots, headed up by Turkey, Bulgaria and Dubai.
    Position Country
    1 Turkey
    2 Bulgaria
    3 Dubai
    4 Thailand
    5 Cape Verde
    6 Czech Republic
    7 Slovakia
    8 Hungary
    9 Egypt
    10 Poland
    Neil Redcliffe, group managing director of Currencies Direct comments, “Turkish property is in great demand and Turkey itself is at the start of a predicted property boom.Turkish property still offers enormous potential for returns on investment too; last year alone, property prices rose by around 50%.”

    He continued, “All indications show that investment in Turkey is a wise option today; properties are still unbeatably good value and the tourist industry is growing.
    Article taken from,https://www.currenciesdirect.com/news/view.php?Id=96

    Have a Happy New Year every body.
    From the number 1 country to invest your money in Turkiye (Turkey.)
     
  19. Investy

    Investy Senior Member

    More Brits bought in Morocco than Portugal in 2006 so I cant see how its not on your list.

    Most Moroccan properties the stage payments are made in Euros to companies in Spain and France SO THESE LISTINGS ARE HIGHLY MISLEADING.
     
  20. TH4S

    TH4S New Member


    Investy please look at the post again it started with Press Releases - 24 Oct 2006
    And ended with The Article was taken from currencies direct, İts not my list,?

    Neil Redcliffe, the group managing director Of Currencies Direct, the UK’s number one non-bank provider of international payment services and commercial foreign exchange,would not miss lead people would he,

    Have a Happy New Year every body.
     
Loading...
Thread Status:
Not open for further replies.

Share This Page