Doomed

[sasguru]

NY, NY?

Nah there are 4 countries you should not touch with a barge pole: US, UK, Ireland and Spain.

[Clippy]

Nah there are 4 countries you should not touch with a barge pole: US, UK, Ireland and Spain.

Agreed but the US is looking good, no?

House prices tanking, strong £.

Next guess is South America.

[wendigo100]

Eastern Europe? I keep hearing about cheap property in Romania. Or one of those commie countries.

[DimPrawn]

The problem with these "so called" property hotspots abroad is that the prices are only being pushed up by the speculative rush to get into the market.

You try selling up with a fat profit further down the line when everyone realises there is no real demand outside of the speculators desire to get into the market.

Easy to buy, hard to sell on.

[tim123]

Aye. Although I have invested in property abroad.

And you think that will help you?

The boom in house prices in many areas abroad has been caused by Brits (and others) seeing house prices in their own country rocket, looking to invest elsewhere, either because they can't afford to buy at home or to invest even more.

I really don't believe that the stupid prices paid for, e.g. skiing apartments in Bulgaria, that are 30 times what the locals can afford to pay, will stick when the Brits (etc) stop buying there.

Tim

[Francko]

Eastern Europe? I keep hearing about cheap property in Romania. Or one of those commie countries.

Nahh mate, latvian prices have already started to go down and soon will be for Estonia and Lithuania. Did you know that to get a decent small flat in the center of Vilnius you need at least 200.000 pounds? That doesn't seem in line with an average salary of less than 500 quid each.

[sasguru]

And you think that will help you?

The boom in house prices in many areas abroad has been caused by Brits (and others) seeing house prices in their own country rocket, looking to invest elsewhere, either because they can't afford to buy at home or to invest even more.

I really don't believe that the stupid prices paid for, e.g. skiing apartments in Bulgaria, that are 30 times what the locals can afford to pay, will stick when the Brits (etc) stop buying there.

Tim

Anyone would think that Brits are the only people with money to spend in the world
There are many reasons why you may invest in a currently underpriced area:

(1) the area is of outstanding, relatively undeveloped natural beauty within a short flight of mainland Europe (Dalmation coast)
(2) or an underpriced capital city in an important country (Berlin)
(3) or in an emerging economy that is also a tourist hotspot and local millionaires playground (Goa)

etc. etc.

And there are many reasons to invest, capital growth, rental income or simply to have a holiday pad. And it depends if you are looking for short, medium or long term returns.

[DimPrawn]

Anyone would think that Brits are the only people with money to spend in the world
There are many reasons why you may invest in a currently underpriced area:

(1) the area is of outstanding, relatively undeveloped natural beauty within a short flight of mainland Europe (Dalmation coast)
(2) or an underpriced capital city in an important country (Berlin)
(3) or in an emerging economy that is also a tourist hotspot and local millionaires playground (Goa)

etc. etc.

And there are many reasons to invest, capital growth, rental income or simply to have a holiday pad. And it depends if you are looking for short, medium or long term returns.

Of course, just watch some of the hotspots going off the boil damned quickly, leaving you with a £200K log cabin in the arse end of Europe.

[sasguru]

Of course, just watch some of the hotspots going off the boil damned quickly, leaving you with a £200K log cabin in the arse end of Europe.

He who dares, Rodders!

[tim123]

Anyone would think that Brits are the only people with money to spend in the world .

No, the Germans and Dutch are just as bad.

There are many reasons why you may invest in a currently underpriced area:

(1) the area is of outstanding, relatively undeveloped natural beauty within a short flight of mainland Europe (Dalmation coast)
(2) or an underpriced capital city in an important country (Berlin)
(3) or in an emerging economy that is also a tourist hotspot and local millionaires playground (Goa)

etc. etc.

And there are many reasons to invest, capital growth, rental income or simply to have a holiday pad. And it depends if you are looking for short, medium or long term returns.

But you still need a sucession of willing buyers to sustain a price level. The local's don't earn enough to buy at these levels, so as soon as the foreigners stop investing in an area the price tanks.

tim