Know what you're getting into... seriously. If it sounds too good, it probably is.
Two stories about overseas property investments caught my eye today. Figured I was getting a hint from somewhere.
Investing in US Rentals
https://factwire.org/investigation/p...in-us/?lang=enOne of the alleged victims Ms Hung bought a ‘newly-renovated’ three-bedroom house at Las Palmas for US$69,400 in 2014 after seeing the advert. ‘The salesperson told me that the properties were initially acquired by an investment fund at foreclosure sale and were typically rented to middle-class office workers,’ she said.
Hung, who flew to Houston to view the houses with some other owners after being hit with a huge maintenance bill once the guaranteed period ended in 2016, said the actual condition was a far cry from what was advertised.
‘The whole place is very unsafe, and some vacant houses were occupied by squatters,’ she said, adding that her property was under renovation at the time, but some neighbouring units were dilapidated, with windows boarded up and rubbish piling up outside.
She is now in the process of selling the house for US$54,000, after having spent more than US$17,000 on repair and refurbishment, resulting in a net loss of about US$27,000.
UK Student Housing
https://www.scmp.com/property/intern...oper-make-goodBrian Hodgson, a 55-year-old auctioneer in Hong Kong, was one of the investors affected. He bought one unit in College Street Village and another at Scholar’s Court after being attracted by the high “guaranteed” returns stated in emails sent to him.
He paid a total of £100,000 over two years to 2017, or £50,000 each on average, aiming at securing retirement income. He said he was guaranteed £1,010, or a 10 per cent yield, in pro-rated quarterly payments for each property.
Hodgson said he received a full payment in July 2018, and thereafter received a payment of £72.49 in January.
“Nothing in the contracts says they had the right to cancel payments,” Hodgson said.