The £100,000 question

[angie]

In Saturday’s FT, 11 property insiders were asked where to invest £100k for the best return on property.

Results were interesting:

5 said UK
3 US
1 MID. EAST FUND
1 CITIES: LON, PARIS, NY, SHANGHAI
1 SPAIN (MALLORCA)

No surprise that it was Mark who said Spain but Balearics, in particular Mallorca. I do think the Balearics are more insulated against Spanish property woes due to niche market there.

However both Savills and Cluttons who said UK, did so because of high level of regulation, safety and security and the point I’ve been bashing so long which is current exchange rate for Brits. 😉

[rt21]

I think if I was buying property purely as an investment I would certainly choose the UK over Spain any day.

Although I appreciate that the Spanish market is made up of different segments and is not an homgeneuos one, the fact is that there is a surplus of housing in Spain and a shortge in the UK. When you add in the currency issues and the fallout from planning abuses then Spain seems to me a poor choice for investment

Richard

[rt21]

I think if I was buying property purely as an investment I would certainly choose the UK over Spain any day.

Although I appreciate that the Spanish market is made up of different segments and is not an homgeneuos one, the fact is that there is a surplus of housing in Spain and a shortge in the UK. When you add in the currency issues and the fallout from planning abuses then Spain seems to me a poor choice for investment

Richard

[logan]

Investment with what purpose? Capital gain or return on capital in income form. Ideally the two of course but very unlikely in today’s global property markets. Even modest gains are difficult in domestic property these days.
Equities are a much better bet.
Stocks have growth to come, especially in US. Property was yesterdays investment.
Property in Spain is dead in the water.

[logan]

Investment with what purpose? Capital gain or return on capital in income form. Ideally the two of course but very unlikely in today’s global property markets. Even modest gains are difficult in domestic property these days.
Equities are a much better bet.
Stocks have growth to come, especially in US. Property was yesterdays investment.
Property in Spain is dead in the water.

[angie]

I tend to agree with both of you re investment in Spain, and as Richard so rightly says, there is a shortage of stock in the UK but an oversupply in Spain.

If I invested in Spain when the exchange rate improved, it would be in Mallorca which Mark mentioned and which remains a perennial favourite and has a small property market too.

The article didn’t mention for what purpose the investment was, I presume for capital gain.

[angie]

I tend to agree with both of you re investment in Spain, and as Richard so rightly says, there is a shortage of stock in the UK but an oversupply in Spain.

If I invested in Spain when the exchange rate improved, it would be in Mallorca which Mark mentioned and which remains a perennial favourite and has a small property market too.

The article didn’t mention for what purpose the investment was, I presume for capital gain.

[angie]

Now Spain is still officially in recession and has 19.5% unemployment, together with the other problems, it doesn’t make it attractive for property investment despite so called bottoming out of prices.

[angie]

Now Spain is still officially in recession and has 19.5% unemployment, together with the other problems, it doesn’t make it attractive for property investment despite so called bottoming out of prices.

[Anonymous]

@angie wrote:

In Saturday’s FT, 11 property insiders were asked where to invest £100k for the best return on property.

Results were interesting:

5 said UK
3 US
1 MID. EAST FUND
1 CITIES: LON, PARIS, NY, SHANGHAI
1 SPAIN (MALLORCA)

No surprise that it was Mark who said Spain but Balearics, in particular Mallorca. I do think the Balearics are more insulated against Spanish property woes due to niche market there.

However both Savills and Cluttons who said UK, did so because of high level of regulation, safety and security and the point I’ve been bashing so long which is current exchange rate for Brits. 😉

Just for info, what type of property is available in UK for 100000? are you thinking on residential units?

[Anonymous]

@angie wrote:

In Saturday’s FT, 11 property insiders were asked where to invest £100k for the best return on property.

Results were interesting:

5 said UK
3 US
1 MID. EAST FUND
1 CITIES: LON, PARIS, NY, SHANGHAI
1 SPAIN (MALLORCA)

No surprise that it was Mark who said Spain but Balearics, in particular Mallorca. I do think the Balearics are more insulated against Spanish property woes due to niche market there.

However both Savills and Cluttons who said UK, did so because of high level of regulation, safety and security and the point I’ve been bashing so long which is current exchange rate for Brits. 😉

Just for info, what type of property is available in UK for 100000? are you thinking on residential units?

[angie]

Legally, there would be very few properties in the UK for £100k except in deprived areas and also mainly up North.

The article mentioned it was a small amount but I think was just an example, maybe assuming there’s not many people about with much more to invest right now.

[angie]

Legally, there would be very few properties in the UK for £100k except in deprived areas and also mainly up North.

The article mentioned it was a small amount but I think was just an example, maybe assuming there’s not many people about with much more to invest right now.

[Anonymous]

angie:

I don’t understand your comment about ‘legally’.

I’ve just checked on rightmove & found the following:

Max price £100,000

337 properties for sale in Surrey
1000+ Hampshire
434 Wiltshire
1000+ Kent
1000+ Essex

There aren’t many deprived areas in these counties.

The UK beats Spain every time for ‘property investment’.

[Anonymous]

angie:

I don’t understand your comment about ‘legally’.

I’ve just checked on rightmove & found the following:

Max price £100,000

337 properties for sale in Surrey
1000+ Hampshire
434 Wiltshire
1000+ Kent
1000+ Essex

There aren’t many deprived areas in these counties.

The UK beats Spain every time for ‘property investment’.

[Fuengi (Andrew)]

@rob6578 wrote:

angie:

I don’t understand your comment about ‘legally’.

Angie was replying to the poster called legally

[Fuengi (Andrew)]

@rob6578 wrote:

angie:

I don’t understand your comment about ‘legally’.

Angie was replying to the poster called legally

[Anonymous]

fuengi & angie:

SORRY!

[Anonymous]

fuengi & angie:

SORRY!

[angie]

Somehow I thought that might be confusing Rob when I was replying to Legally, sorry for that.

Interesting that you found so many under £100k properties in Southern counties and I do agree that investing in the UK is a better bet for now. The fundamentals of exchange rate, completion costs, and supply won’t change for a while.

However on a personal note I do think Fuengi and Inez are friendly and sensible with their replies on here and restore my faith in agents on the Coast somewhat. If I wanted to do business in Spain I’d probably visit them to start with. 😉

[angie]

Somehow I thought that might be confusing Rob when I was replying to Legally, sorry for that.

Interesting that you found so many under £100k properties in Southern counties and I do agree that investing in the UK is a better bet for now. The fundamentals of exchange rate, completion costs, and supply won’t change for a while.

However on a personal note I do think Fuengi and Inez are friendly and sensible with their replies on here and restore my faith in agents on the Coast somewhat. If I wanted to do business in Spain I’d probably visit them to start with. 😉

[Author]

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