10 things to consider before buying overseas property.
1.Your Goals
Decide from the beginning what you want from your property purchase
– pure capital growth or a place in the sun. These decisions should shape your purchase choice. Deciding on a fixed budget is also important.
2.Own Research
Take time at the preparation stage to do your homework.
Newspaper and magazine articles, television programmes and websites on overseas property investment can be invaluable in giving an insight and overview.
3.Expert Advice
Consult the experts as well as doing your own research, as they may be able to answer specific queries you have that articles do not address. Government websites and websites dealing particularly with global tax issues,for instance, can give hard facts you may need at this stage.
4.Areas
All countries have many differing areas offering an array of attractions. Once you have decided your goals for your purchase you can consider whether you need an area
perfect for regular holiday-makers, or something more remote and rich with cultural heritage. Again, research is key here.
5.Estate Agents
Being helped by a competent and well trained estate agent is important to making a safe and reliable purchase.
6.Considerations
There may be issues to take into consideration that are not issues in established markets such as the UK or France for example. It is vital that you have a basic understanding of the country you are investing in. You need to know about, the economy, the country’s political stability etc
7.Finances
A full understanding of costs is key to investment success, from entry to exit costs and covering financing and mortgages in between. Know how much you will have to incur and factor a little more into your budget to avoid any nasty surprises and to ensure your investment can become profitable.
8.Lawyers
Hiring an independent lawyer is vital. Using one on personal recommendation is a good idea but failing that most British Embassies (and other countries too) keep a list of recommended lawyers.
9.Profit Margin
Ask yourself what levels of capital growth you can realistically gain on your property investment or how much rental income you can generate (your research will help you here, remember to take most rental projections with a pinch of salt). Working backwards from these to your initial budget will work out your potential profit margins. It is essential to keep objective at all times about whether your investment has good potential for profit.
10.Long Term View
Even if your plan is to purchase purely for investment and possibly even sell before completion, it is still important to take a long-term view. This is in the case of the property itself (will the surrounding areas around your property change, get built on etc.) and in the case of whichever country you are investing in as a whole (considering the country’s future tourism, stability etc.)
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