While there is general doom and gloom it is clear from a thread on the landlordzone.co.uk forum that it really does depend on where your property is with some landlords doing really well from their buy to let properties.
Atillathelandlord reports that he is still buying with an average of £15 to £30k ‘knocked off’ of prices in London and rents are still going up. But in the Midlands, the North and Wales it is reported that rental prices are falling.
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So it is not surprise that many investors are looking abroad. Everyone seems to be on the lookout for the next property hotspot and there are certainly some interesting prospects out there.
On the totallyproperty.com website a new thread suggests Fiji as a good investment prospect. Quite an argument rages about the good and bad side of investing in such a far away place where there has been recent political instability.
Those in favour site Fiji as being not just a tropical island but a 'tropical paradise' with easy access from New Zealand and Australia and a strong tourism industry. Damien, who started the thread, reckons beach front villas are a good buy with very high returns of over 12%.
However there are those who are sceptical. The downside, for some, is political and tribal uncertainty – a coup in December 2006. Also foreigners can only rent property through a company which must have a local holding 51% of the shares.
The overall conclusion on this thread is that Fiji is indeed a beautiful place but perhaps best for a holiday rather than an investment unless you are a risk taker. Other Pacific islands are also suggested as worth consideration.
Morocco is one of the most popular destinations for foreign investors at present but a thread on the Channel 4 overseas property forum reveals that getting a mortgage to cover a purchase in Morocco is not easy.
Mortgages are still in their infancy in Morocco. Then there are the usual currency fluctuations to deal with. Those contributing to the debate reckon it would be pretty hard to get a UK mortgage to cover the cost of a property in Morocco.
However, it is clear that if you persevere with the banks in Morocco it is possible and interest rates seem to be between 5 and 7.5%.
On the totallyproperty.com site a thread on Caribbean property shows that the sheer amount of information available on forums can be useful for potential investors. A number of would be investors asked about the island of Margarita. Some didn’t even know where it was – it’s just off the coast of Venezuela.
The replies included the fact there are direct flights now from Manchester and Gatwick, that property is cheap, it has new golf courses, millions being spend on infrastructure and a new Formula One race track is being built.
The cost of living is also regarded as cheap. Alcohol is cheap because Margarita is a free port with no taxes, fuel is cheap and there are lots of fresh vegetables. One forum member even revealed the cost of different cuts of beef.
There is also the story of one British couple from the North East who moved there in 2006 with their young daughter. They run a bed and breakfast and also own an English bar – called the Rovers Return!
As humans we are fascinated by the ability of successful people to keep making money. A fascinating thread on the singingpig.co.uk forum attempts to get into the mind of wealthy people. Started by Chatanooga in June 2004, it charts the ups and downs of the property market over four years and gives an insight into how investors started – from doing a weekly paper round aged 14 to investing in shares while at University, and the single mother who started her own kitchen business after re-mortgaging her house and now has two properties in the UK, two in Bulgaria, two in Dubai and one in Florida.
It is a long thread but fascinating and in many cases inspirational, perhaps one to read when you are feeling fed up with the current credit crunch or just seeking a spark of imagination.
