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Foreign investment- anyone picking up bargains from the busts?

Discussion in 'General Property Chat' started by seachange, 9th Mar, 2016.

  1. seachange

    seachange Well-Known Member

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    I know it's an Australian property forum, but that can also include Australian's investing overseas , no?
    I know some of you have US property investments, but what about other markets?
    I've been looking wistfully at Ireland for example. while you wouldn't expect it to regain anything like the peak of the Celtic Tiger , it's a very subdued market. The euro exchange isn't too bad for us either.
    Do many of you look internationally ?
     
  2. MTR

    MTR Well-Known Member Premium Member

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    I will try to find the link on SS, a guy wrote an extensive post on property investing for cash flow in UK? I think perhaps Manchester? I will try to locate it.
     
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  3. Casteller

    Casteller Well-Known Member

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    I have 2 properties in Spain now, have just finished renovating a 1br apartment in Barcelona, took me 2 months. Did some of the conveyancing myself also (10% stamp duty payment, property registration). Prices seem to have bottomed, first rises in 7 years in 2015. I will rent it out on medium term lets (2-11 months) mostly to foreigners, a lot of people like to come to Barcelona for 6 months or so. Gross yield about 9%, net yield after all costs and expected vacancies about 6.5% before tax. If it goes well I will look for another to buy this year. Also opened a trading account and have been buying a few Spanish stocks which offer good yields.
     
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  4. MTR

    MTR Well-Known Member Premium Member

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    Nice:)
     
  5. ashimashi

    ashimashi Well-Known Member

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    Personally no, but my mother has most her investments overseas, mainly in Iran (she's done well down there). Most recent purchase was roughly 18-20 months ago, she purchased a brand new 3bedroom apartment in a newly built residential tower in a pretty high end suburb in Tehran where prices/market pretty much hit bottom quite a bit. Political/Economical situation gradually started becoming better in the past year, so house prices have started to gradually move back up slowly. She purchased it for around $160,000k aussie, and she found out last month a 2bedroom in the same tower recently sold for $255,000 aussie. So at the moment her plan is to hold until the sanctions on Iran are lifted (whenever that is :rolleyes:) which would probably enable her to being able to sell it off hopefully at close to previous market price for a 3bed in that area for around the 350k+ mark.

    All i know is this, gotta have pretty huge cojones to invest your money in middle-east these days let alone a country under international sanctions. Liquidation of everything and bringing it over to Australia in the near future is on the cards though, she's ready to pull the plug. Good choice too if you ask me.
     
  6. MTR

    MTR Well-Known Member Premium Member

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    OK, just back to US

    Funny enough I thought buying opportunities in the US property market would be limited today due to the significant rise in properties and also becauses the Au$ has fallen significantly.

    What I see now is more opportunities as long as you can source finance at the right interest rate.

    There is also an opportunity to sell all my properties in a hot market (no CGT) and start buying up again using a different strategy which provides same returns as those who purchasesd in US were achieving in 2011/12 in areas which are currently gentrifing.

    I fly out in May, once I bed this and tweak I will start up a new thread on this.

    MTR:)
     
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  7. Chabs

    Chabs Well-Known Member

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    Your US story is pretty awesome MTR!

    What do you mean by no CGT? Do the states literally have 0 cgt?
     
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  8. MTR

    MTR Well-Known Member Premium Member

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    Technically yes....As long as you are purchasing another investment property with the funds from sale you don't pay cgt
    Have to complete a form for this, know someone who has gone through the process from Oz.

    I am also doing the same currently. I leave this stuff to my US accountant.