Questions on Overseas property

Q: What do you think about investing in land in UK. Is it safe? Are the returns good?

I am not familiar with the UK property market. I read that the property values have increased to a high level over the recent years. There are also reports about the inability of home owners to repay their mortgages, similar to the sub-prime problem in America.

Be careful. It is best to avoid investing in an asset that you are not familiar with. It is more risky, if you are investing overseas.

Q: I am interested to invest in an apartment in Australia. I can get a return of 10%. Is this a good investment?

I understand that property values in Australia have increased significantly in recent years. Is the price too high now?

If you invest in an overseas property, you must be aware of the following:

* It may be difficult to find a tenant.
* The property may be vacant for part of the year.
* You have to deduct the agent fees and other expenses from the rental income.
* Many people find the additional expenses to be costly and a hassle.

If you have a family member that is using the apartment for a few years to stay in, it may make the property more attractive. At least, you can save on the rental that you have to pay for a rented property. But, you have to consider what to do after that period.

Be careful. It is best to avoid investing in an asset that you are not familiar with. It is more risky, if you are investing overseas.