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Diversifying Portfolio Across Europe


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I've built up a portfolio across central Manchester, Salford and a few South Manchester areas (Didsbury, Chorlton etc) Whilst I expect the portfolio to do well in the next few years as Manchester develops at a quicker rate than all other UK cities I can't help but think it wouldn't do any harm to sell 10-15% of the portfolio and diversify into European property - particularly because of the instability brought about by Brexit (although this doesn't seem to have affected Manchester's yet but I gather Liverpool/Leeds in particular have struggled since the vote to attract significant amounts of investment).

 

I was interested if others have found themselves in a similar position and has anyone actually taking the step of buying in Europe (or further afield) purely for investment and not lifestyle reasons?

 

Current areas of interest are Berlin, Dresden, Leipzig, Dublin, Budapest and Lyon - Berlin is the most attractive at present from an appreciation standpoint but would be great to hear the thoughts of others.

 

Cheers

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  • 2 months later...

Hi, My portfolio is exclusively in Dublin, it’s not the bargain town for  investment that it was 3 years ago but it is still possible to buy close to the city center with a 10% ROI. Key differences are the 4% per annum cap on rental increase subject to certain exemptions, stamp duty is 1%, ground rents don’t really exist, property tax is paid by the landlord but is a lot less than the UK.  Mortgage interest is tax deductible to 85% for next year and going back to 100%. Finance for non residents is difficult but not impossible, I use a broker called New Money and they helped a UK friend of mine recently. Hope this helps, Dublin is a great town if you decide to invest, I’m sure you won’t regret it. 

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I too am interested at properties in Europe but how do you manage the 2 main issues of:

 

1- property sourcing. Visiting houses/buildings in Germany or Portugal would need me to take a holiday from my day to day job and it’s difficult to juggle with family etc.

 

2- language barrier. Anything gets complicated unless you are fluent in the other countries language... I can speak French, sadly the BTL market is crap there (low yields & high capital gains tax). Don’t speak German Portuguese nor Spanish :-(

 

Anyone could share their experiences in more details ?

 

cheers

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I'm living in Germany and have been investing privately in buy to rents for the past 8 years. Purchasing property is relatively easy in Germany and apartments are generally managed my property management companies (Hausverwaltungen) so limited to no interaction with tenants required. The major A cities Berlin, Dusseldorf, Stuttgart, Frankfurt, Hamburg etc. are quite difficult to achieve a good ROI,  B cities cities such as Dresden, Essen, Leipzig, Bonn etc. are interesting and C cities are riskier but possible to find some deals. Some properties in Germany are sold with contracts where the tenant has the right to remain in the property for life with limited possibility to increase rents, these properties are often sold at lower prices so as always due diligence is required.  Auctions are also interesting in Germany and have unfortunately become quite popular in the past few years. Happy to support anyone with any questions :) 

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