Who has made money overseas lately?

Can someone enlighten us with some good news stories about property investment overseas?

1. Has anyone sold recently and made a killing? Just tell us in percentages if you are bashful or think the Revenue is watching.
2. Country?
3. What type of investment was it: buy to flip or buy to let?
4. Overall, what was the reason you made money?

Propman said:

Just tell us in percentages if you are bashful or think the Revenue is watching.

Click to expand...

How would it be relevant whether the Revenue were watching?

Propman, I don't even mind if you are revenue as I'm living abroad fulltime and paying taxes here, well, work ones anyway

I bought some land just over 3 years ago for next to nothing, I doubled my money selling it on (from €4,200 to 9,000). I know it's not big money, but it was something I'd planned to do. But it depends on the area and also if you want to do something with it, the person who bought from me is now almost finished building a fine house on it, which is what I had been thinking of doing.

An apartment I bought in Budapest three years ago is now worth 40-50% more, which is a fairly good return in my opinion. Although I live in the property at the moment, I could potentially rent it to give a return of around 10% of the purchase price per year. My feeling is that there are good and bad investment opportunities in many countries. You just have to do your research.

We bought 2 sites in Tallinn Estonia and have increased in value by 500% in 3 years. We now have them both sold so this is not a paper value but a real profit.
This profit is taking into account Architects and accountants expenses and all commisions.

kendar global properties have supplied me with details for apartments in sziv st in budapest - 70k for one beds. has anybody any thoughts on the area /price?

Who has made money overseas lately?

Click to expand...

I have made money overseas on unit linked equities in case that's of any use.

limerickmick said:

kendar global properties have supplied me with details for apartments in sziv st in budapest - 70k for one beds. has anybody any thoughts on the area /price?

Click to expand...

You would be better off asking the question in a separate thread.

This profit is taking into account Architects and accountants expenses and all commisions.

Click to expand...

Hope you have paid your taxes due to irish revenue as well

It would probably be more useful to know if anyone has lost money on foreign investments (ie places to avoid) although I suppose people are less likely to own up to this.

Where the money was made in the past is not always a good indication of where it will be made in the future. There are more important indicators than that such as population growth And build versus need ratio.
I would be afraid to go into anyplace that has already experienced huge growth as it is unlikley to be able to maintain it.

gearoidmm said:

It would probably be more useful to know if anyone has lost money on foreign investments (ie places to avoid) although I suppose people are less likely to own up to this.

Click to expand...

There's a whole forum on it, if you speak Spanish? — Burbuja Inmobiliaria (= 'property bubble'). See this thread, even if you don't...

Dubai looks a little suspect to me, I've been there a few times and have friends working in the Gulf, even with the money they're earning there's no chance in heck that they'll buy an apartment as an investment. Although one of them bought some land in Jordan, it's relatively close to the Israeli border and he's hoping that some rich Jewish person from the USA or Europe will buy it to protect the country (no joking, it's an acutal growth area if you buy in the right place!).

Oh, Montenegro, not so easy to get out. One gent from Tullamore bought an apartment off plans that has turned out to be completely different from what he was contracted into buying (it was largely his fault as the agent told him two rooms, but didn't think it was necessary to specify two rooms in total, with a generous bathoom). He's now an owner 18 months having had to follow through witht he contract but cannot shift it.

Yes, Montenegro looks distinctly dodgy to me.

One company employs approx 20% of the total workforce, the rest of the economy is paper thin, alot of money laundering and racketeering going on, mainly through property channels.

kendar global properties have supplied me with details for apartments in sziv st in budapest - 70k for one beds. has anybody any thoughts on the area /price?

Click to expand...

A mate of the ould fella gave up his job there last year to get into property speculation in Europe. He sources property (usually new apartment developments) in the Eastern European capitals. After putting down deposits on as many apartments as he can afford, he comes back to Ireland and starts flogging them at between 10-20% above market rates. He maintains that he doesn't even need to use an aggressive sales pitch, such is the demand with people often recommending his services to their friends. What these fools (they're completely at fault here) don't realise is that once the property is bought (often with a mortgage) is that they're straight into negative equity. They honestly believe that because they paid €xxK for the place, that that is its actual value. They refuse to acknowledge he fact that rent yields come nowhere close to covering the mortgage and that none of the people in these countries can even come close to coming up with the money to buy the apartments at what these fools paid for them originally.

This is happening.
We are purchasing a site (that we sourced ourself)in a European capital at the moment for 270K. There is a site available on the next street on one of the internet sites that is less than half the size and is paddy priced at 570K

woods said:

We bought 2 sites in Tallinn Estonia and have increased in value by 500% in 3 years. We now have them both sold so this is not a paper value but a real profit.
This profit is taking into account Architects and accountants expenses and all commisions.

Click to expand...

Is there a double taxation agreement with Estonia? Were you able to offset all your tax paid in Estonia against your Tax liabilty in Ireland?

Culchie said:

Yes, Montenegro looks distinctly dodgy to me.

One company employs approx 20% of the total workforce, the rest of the economy is paper thin, alot of money laundering and racketeering going on, mainly through property channels.

Click to expand...

Great post culchie, I know you're sitting pretty where you bought, but the nonsense being peddled about Montnegro is scary. Through private and government channels my colleagues had a good long look down there but you know, you're better off buying in Albania (not that it's saying much). But people are motivated by what they're told about prices, price rises and expected returns, but nobody seems to want to listen to sense when they're buying "cheap", but as my colleague says, "I can't afford to buy cheap, it costs too much".

almo said:

Great post culchie, I know you're sitting pretty where you bought, but the nonsense being peddled about Montnegro is scary. Through private and government channels my colleagues had a good long look down there but you know, you're better off buying in Albania (not that it's saying much). But people are motivated by what they're told about prices, price rises and expected returns, but nobody seems to want to listen to sense when they're buying "cheap", but as my colleague says, "I can't afford to buy cheap, it costs too much".

Click to expand...

'Sitting pretty' .... I don't know, ask me in a few years. So far so good anyway, I'm delighted with it so far.

What I will say and it backs up your sticky post is to do alot of research before hand, and narrow it down to the areas you feel will be a good investment over time, then go out and visit, and then do some more research, the internet has alot of information available, right down to Airport visitor stats and trends.

Understand that in some areas, your season consists of 12 weeks, no more.
It may improve over time, but don't bet on it.

Another important thing for some areas ... The Irish interpretation of 'turn-key' can be alot different to your developers idea of 'turn-key' so specify everything.
Also you may buy a fitted kitchen, but it may not have taps! ... or the cooker isn't connected ... as part of the 'fitted kitchen'...or light fittings etc... You have to organise that yourself.

And finally ... haggle and negotiate the best deal you can for yourself. (Car Parking, Legal fees, Choice of the tiles you want etc..)
Make sure you understand exactly what the proper 'going rate' for property in the area is (not Paddy Price)

....and follow your gut instinct.

The Paddy/Western price is something I hate! And far too often the "agent" has ramped on €100 per m2 for their own good. I saw that just yesterday in Trogir, the local agent had signed an agreement with the developer to sell exclusively, the price the developer wanted, €1,400 per m2, the selling price, €1,800 per m2 (for the agent and their lawyer) and his suggestion was, round it up to €2,000, sure everyone does it! It's wrong but too many are doing it!