What is the current best overseas investment for rental returns?

[ricardothered]

Hi

I am interested in the Berlin investments you have found - could you private message me with the details please?

Thanks

Originally Posted by Investy

Forget the Kent flat, your too late, all the easy money has gone and the B2L market is seriously crowded. Furthermore you should know many lenders have stopped lending on B2L new build property as there is mass over supply leading to high repossession numbers (ie whole blocks come to market all seeking tenants so rents are driven down). Buying new is also a mistake as you overpay for the 'new' factor hence there is often no capital growth for 2 - 3 years.

Rising interest rates makes the cocktail even more risky.

UK property does not pay for its self as you imply - I know as Ive recently sold my B2Ls. Work out the cost of your deposit (ie loss of potential savings interest or if you borrowed the deposit the cost of that borrowing), plus the mortgage cost plus your maiantainance, accountants fees, the odd repair or rat removal etc etc. You will find that you will subsidise the investment if you do your numbers properly and then remember there is 40% capital gains tax when you sell (unless you sell when you have very low income in which case say 25%).

The US venture has better prospects but you need to think like an investor. Holiday rents in Florida can be not worthwhile and I often hear the costs never end (pool stops working etc etc).
Better to buy in a US city such as Atlanta and get year round rent or Toronto (Canada) with underground lift access to avoid snow pile ups.

Or join me in Berlin where I am investing heavily. Its right on your doorstep and like London 15 years ago. Ive just found 2 bed appartments fully maaintained with 10 year Government rent guarantees in a nice green family locale for £35000 or so.

[andyk2]

Originally Posted by davy9449

I was sent an info pack on hotel room investment in Panama. $65K gets you a studio, $100K a 1 bed apartment. Growth approx 20% / yr at the mo, 70% of room rental paid to the investor (although no gt'd yield - predicted 15%+) and obviously capital growth on top. 30% dep (£10K approx) for a studio and the rest with a mortgage seems a pretty good deal. No CGT for 20yrs also.

Anybody ventured out that far?

I have seen this investment too, and like it very much (can tell it´s the same because you have quoted much of what´s in the brochure). Panachuk quotes very high occupancy rates, but that is for Panama City. This project is a "touristic" government scheme (like Jardin de Fleur on Saidia, except with bank guarantees!) which should generate 70% occupancy.

The (marketing) figures you quote are based on 60% occupancy. If 70% was maintained, the return to what is physically invested is 18.50% in year 1, rising to 22% by year 7. Initial (only) investment required is about $110.000 and the maintenance fees, service charges and other assorted costs are taken out before calculating the ROI. You can still make a little money on occupancy as low as 41%.

There is no income tax (on this project) in Panama for 15 years and no property taxes for 20 years, although there is CGT at 10% (as a private, individual investor) rising to 27% if the Government think you are a "real estate trader". Because of these benefits, it could make a lot of sense getting involved in a project such as this rather than the city condos.

Let me know if you want more info.

Andy

[***rnmagus]

With recent repos and low owner occupancy its possible to get rental returns in parts of U.S. in excess of 30%. If rental return is what you are after I am not aware of any better deals. However, dont expect a great deal in CG its currently around 7%.

[andyk2]

Hi,

There is a client who needs to pull out of two 2 bedroom apartments and a 2 bedroom villa (Star Island) at Punta Perla. The developer is doing this for a favour, and in order to facilitate a fast deal, has offered 10.70% guaranteed rental for 10 years. Developers mortgages are available, but you need to put down almost 50% of the purchase price.

2 bed apartments $425.000

2 bed villa $1.100.000

PM or email andykelleher@mixmail.com for more info

Thanks,

Andy

[Lysos]

Before anyone even considers putting money into Punta Perla (construction not even started yet) they should check out the very long thread on singingpig.

[dale nelson]

Hi All.

As there doesnt seem to be much exposure for South Africa, do an internet search on St Lucia in South Africa and Cape Vidal. Also chech out a place called Ponta Da Ouros in Mozambique.All round fishing destinations close to the Kruger Ntaional Park Game Reserves.Did you know Tiger Woods had his honeymoon there.Richard Branson has a house here. A very underrated investment area. You can still get a 3 bedroom property walking distance from the beach for less than 1 million rand which is about 50000 pound or 100000 dollars. Land is about 25 pounds a square metre. Rentals for a 3 bedroom are about 200 pounds a week and there is sometimes a waiting list for a year to plan your holiday.There loads of opportunity.

Hope this interests you.

Dale
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