Buying Overseas

And further to the above:

Vietnam quickly becoming Asia’s latest property hotspot

CBRE overview 2018 second quarter: CBRE Vietnam MarketView Q2 2018

Industrial property: Industrial property boom right on cue

FI coming to Vietnam 2020: Vietnam secures 2020 Formula 1 berth - Speedcafe

 

"The revised law on housing, which took effect in 2015, has created more favourable conditions for foreigners to buy houses in Việt Nam. More open policies to attract foreign investment have also enhanced the attractiveness of Hà Nội’s real estate.

Experts said granting permission for foreigners to purchase housing is expected to encourage more types of real estate like investment, tourism and service property, which will benefit the economy."


Read more at Ha Noi’s lucrative property market attracts foreigners

 

Germany. Bavaria. 3 apartments (Ferienwohnung) in one dwelling (cant be sold separately and local govt eager to see tourist accomodation growth so no crazy local opposition to foreign buyers provided at least 1 is listed for tourist use) all listed booking.com in VERY heavy demand all year. NET of all expenses 20% yield with local real estate manager handling cleaning and linen etc 2night min Cost $295K Australian. Booked 85% at $450 a night (total all 3). Thinking of allowing 1 nights may take this closer to 100% BUT only on short notice ie within 3-4 weeks of the dates.

Easy to arrange finance using a local bank through their Australian office. - 2.2% and thats to a SMSF I couldnt believe it. Only issue was high local transfer taxes (like stamp duty) around 6.6% . Language and complex legal issues for German purchase but used a local lawyer who spoke great english so no drama. (Some bizarre rules about their legal system) This specific village is a very heavy tourist demand in summer and a ski destination in winter which is quite rare. Easy transport too.

German prices are at a high (cities have surged and now demand has eased) but no limits on foreigners. Germans dont often like multi income properties and they are harder to sell than owner occupied.

 

I had a look at the US. From my initial research, it definitely looked to be more difficult and unnecessarily so given that there is still tremendous opportunity abound in Australia. To say that "Australia is overpriced" is not that useful, given that an investor doesnt buy Australia per se. People buy individual properties and there are markets within markets, each at their own unique point in the cycle, subject to their own localised forces of supply and demand.

Investing in direct property overseas has a lot of different implications, e.g. borrowing, tax, and currency rates, to name a few.

If you are interested in foreign ownership, I would look to invest strategically through something like a REIT that invests in those regions where you want exposure.

 

I've invested overseas but there are a lot of additional risk factors as people have stated. The main one really being the currency risk. My main criteria to protect myself was to ensure the property was positively geared in the local currency and to have a large residual float in a local bank account so that at essentially no stage do I have to transfer funds from here to pay for things. If I hack into the float for any reason, then I just build it back up over a couple of months.

There are additional factors like property management etc and people will say "Well you can't get to the house if you need to" but I haven't ever seen or set foot in most of my properties. The main issues really relate to local law and your ability to enforce that if it really bites the dust. You don't want to be dealing with major issues overseas unless you have the resources to do so and many other countries don't have landlord insurance products etc like we do here.

 

The picture is of the Watzmann mountain as seen from the village of Berchtesgaden - nice part of the world!

 

i agree to a certain extend,
not sure about the markets within markets,
but i think if you only lived longterm in one country in this case australia its VERY hard for you to go and buy in a foreign country even its US,

its hard to get over the mental barrier,
If you lived/worked or an immigrant to another country then i think its Much easier. you have the local knowledge or at least the basic understanding of how of things work.

just stuff like a 10 minute walk in australia is acceptable
Its totally unacceptable in a country like singapore (this is just an example may not be true)

 

I keep hearing about markets within markets in Australia, but seriously how do you get rid of a credit squeeze. APRA has impacted on every market in Australia, I am not trying to be negative. However if investors can not source finance which is what is happening today what do you think will happen? and why has the market gone pear shaped?
Even though our economy is in great shape, APRA did its job, if investors cant buy property, more supply comes to market and therefore the market will be in oversupply? Finding opportunities is fine but it is also very risky atm due to the environment.

2019 wont be a better year to buy, infact from what I am seeing there will be more pain. For me its absolutely not the right time to buy in Australia.
I only buy when it makes sense and I know I can make money, a paper loss is a loss

 

So what are your thoughts now MTR? Curious..

 

Mixed market
Some markets have rebounded due to drop in interest rates in particular Syd and Melb, but what areas ???is it everywhere? And what product?? Are apartments still soft??

We have other States not doing so well ie Perth, Darwin, etc

The thread
Dont buy in 2019 ........more recent posts touches on this topic

Moving forward??? I don’t know anymore??

I believe Melb will hold less risk?? Time will tell

 

Have lived in Japan for 7 years and the honesty and integrity there compared to Australia is just can be matched.You can be be pretty much sure that you wont be taken for ride.Depreciated apartments make the investment case in Japan but I am very skeptical about exit strategy.I can recommend some australian agents based out in Japan if any one wants.Finance is available through non banking finance companies at about 3%.

Cheers

 

I bought some condos OTP in Makati 4 years ago and now selling them for 120% profit.

 

Amen to that, i did the same !

sold all, the last one is now on the market 80% i think wont go above 100%, but the rest been well over 100%, this is my last in makati/manila

 

Hi Radioactive,

Love to know about the aussies agents' contacts. Thanks a lot.

 

America is cheap enough but I heard you need cash to buy as they wont lend to Australians.

 

Also would be interested, last I heard though Japan is still quite expensive?

Is it still cheap? Prices seem to have gone up a fair bit recently.

 

Sure,PM me your contact details and i will ask Ziv to contact you guys

 

Has anyone found a decent similar Property Chat forum for NZ?

 

Why melb? I agree but hard to put my finger on it - I feel jobs, immigration, foreign buying, certain growth pockets (eg Dandenong Werribee etc), certain coveted school zones etc...

Hard to argue with the impact of Apra and serviceability squeeze in Australia

 

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