Investment property in the UK

[Quintessential Mum]

Hi everyone Has anyone bought any investment properties (apartments/houses) in the UK? Any advice on a good location/type of property/real estate agent/stuff to watch out for etc? I am looking at a budget of up to 250,000 pounds. Any help would be most appreciated. Thanks!!

[UncleLim]

Generally not a good idea to buy off the plan or through a Singapore advertiser.


Ask your friends who are familiar with the area you are interested in, then investigate the property by visiting the place.

I am sorry there is no way you can tell if it is a good investment without going there. Really. I have seen a property I am familiar with advertised here for double the price!

[sharon1234]

has anyone visited the property exhibition at the Shangri La hotel ? http://janetong.com/image_gallery/data/USA-UK1.jpg


I am not sure what to do with the money in the bank...interest is so low...is it a good idea to invest in property like this for the long term? my dd may go oversea for study in 10 years' time...

[financial_guru]

sharon1234:

has anyone visited the property exhibition at the Shangri La hotel ? http://janetong.com/image_gallery/data/USA-UK1.jpg


I am not sure what to do with the money in the bank...interest is so low...is it a good idea to invest in property like this for the long term? my dd may go oversea for study in 10 years' time...

If you need to cash out to pay for your DD's education in 10yrs, property as an asset class will not be suitable.
There are more suitable investments like bonds. The return will be between 3-6% per annum depending what type of bonds you invest in.

[UncleLim]

sharon1234:

has anyone visited the property exhibition at the Shangri La hotel ? http://janetong.com/image_gallery/data/USA-UK1.jpg


I am not sure what to do with the money in the bank...interest is so low...is it a good idea to invest in property like this for the long term? my dd may go oversea for study in 10 years' time...

Some do consider owning UK/US properties in the light of their children's studies. But remember these places are not as small as Singapore. Will your child even study in the same city? Even London is a huge place. So it is best to rent for that purpose.

I know one family who bought for their daughters to study. When the girls graduated (one dropped out), it was hard to deal with inefficient rental agents long distance. So they let it for free to a friend's son. Several years later, the place was a total wreck. They sold the apartment at a loss.

Sorry to be a wet blanket but do your homework before plonking in good money.

[rosemummy]

UncleLim:

sharon1234:

has anyone visited the property exhibition at the Shangri La hotel ? http://janetong.com/image_gallery/data/USA-UK1.jpg


I am not sure what to do with the money in the bank...interest is so low...is it a good idea to invest in property like this for the long term? my dd may go oversea for study in 10 years' time...

Some do consider owning UK/US properties in the light of their children's studies. But remember these places are not as small as Singapore. Will your child even study in the same city? Even London is a huge place. So it is best to rent for that purpose.

I know one family who bought for their daughters to study. When the girls graduated (one dropped out), it was hard to deal with inefficient rental agents long distance. So they let it for free to a friend's son. Several years later, the place was a total wreck. They sold the apartment at a loss.

Sorry to be a wet blanket but do your homework before plonking in good money.

Definitely agree with UncleLim. It's not a good idea to buy a property for the child to stay in. I was considering doing that but decided against it, even though it could be a cheaper option. It's best for them to stay on campus at least for the first year. My friends had also warned me that if they have their own house, without being accountable to a landlord, they can be up to some mischief there, like having wild parties etc and no one will stop them.

If you want to buy, it's best to buy after the child had settled in and you're more familiar with the area. You can buy an apartment near the university where your child is studying. The university community will be your target market for tenants after your child graduates. Your child will know them or have some links to them, and it's easier to manage.

Buying a property in an area you're not familiar with is a bad idea. And do note that the property price may be cheap, the cost of ownership is not. There're lots of taxes and levies to pay, as well as very hefty insurance and maintenance costs, agent fees etc. You won't realise how all these adds up until you actually own the property. The reporting requirements can also be onerous. In US, there's also capital gains tax on profits upon sale.

[sharon1234]

Thank you all for your sharing. It really helps to widen the perspective…

[Harleston]

I think you can buy any property with this much money in your hand.You are a rich man and all you need is to do market survey and then you can easily decide where to invest.

[3Boys]

Short discussion here --> http://www.kiasuparents.com/kiasu/forum/viewtopic.php?f=47&t=21358

[UncleLim]

Another tip for would-be UK property buyers.


In the past you would have to rely on someone to describe to you the UK neighbourhood if you yourself are not familiar with it. Now technology has changed everything.

If you see a UK property advertised and you are interested, google it and get the postcode. Then paste this postcode into Google Maps and use the Streetview function to look around. This will help you form a better opinion of the surroundings of the development.

I used it a few times effectively to filter out lousy locations. One was a very nice development but was across the street from an industrial park. Another one was in the city centre but was accessible only via a footpath and the drive to the carpark needed a big detour.