Invest in Countries Where Governments Are Trying To Reflate Property Prices

I chose UK and the US as my favourite property destinations. Why? There are a few countries in the world where the governments are trying to reflate property prices: UK definitely. US yes. Europe? The governments are bankrupt. Otherwise they'd have done the same. I usually buy homes in these countries. Yes I know that London isn't cheap any more. The net yield is not fantastic. Price to income ratio is between 11 - 13x. I should buy a single-family home in Arizona, which has a price to income ratio of 3 - 5x. But government policies act like winds against my sails. I can ride it on the way up. Although I invested in both countries, I put in far more in London than in New York or the States. You see, capital gains tax, other taxes are also a big factor. Capital gains tax lowers my IRR.

I usually invest less in countries where the governments are trying to curb the rise in price. Singapore is one big example. I've stopped for now. Malaysia increasingly is going to lower LTVs. Hong Kong and China totally cannot buy.

Australia and New Zealand are in neutral territory. Their property prices never fall that much and are now rising. Check out New Zealand. No capital gains tax. Some cities are far from the earthquake zones. Do your homework.