Seanest - Jan Van Parijs Properties

5 tips to help you choose the right market when buying a property abroad

Prime property is a resilient and reliable asset that can, over time, amass large sums of wealth. It offers investors the potential for great returns at a relatively low risk and creates a dynamic and strong financial portfolio. As opposed to fixed investments or surrendering your money to investment brokers, owning property gives you increased flexibility and control over your hard-earned pounds.

 

buying property abroad .jpg

 

Prime property is a resilient and reliable asset that can, over time, amass large sums of wealth. It offers investors the potential for great returns at a relatively low risk and creates a dynamic and strong financial portfolio. As opposed to fixed investments or surrendering your money to investment brokers, owning property gives you increased flexibility and control over your hard-earned pounds.

It’s advantageous because you can manage your investment according to your cash flow and long-term goals. In some foreign markets, it’s possible to invest a relatively small amount (possibly just a deposit) and rent it out for steady income on your investment. This is even easier if you own prime property.

Location is key. You should buy abroad if you want a real return on your investment. A major drawcard for buying real estate overseas is competitive pricing. Whether you’re looking for a holiday home, a permanent residence, or a buy-to-let retirement nest egg, the international property market is varied and cheap enough to satisfy your needs. Here’s how to make sure you choose the right location:

 

1. Research the Market History

 

Perhaps the price is alluring, and the location is good, but how much do you really know about the market? Don’t be conned by fly-by-night property investment schemes. Before entering your prospective market, find out if it has a trustworthy track record of solid gains and a low downside risk. Also, consider past geopolitical events and how the market has responded to these. Doing this helps you understand its general growth pattern and overall stability.

With real estate investments, it’s critical to think long-term. When buying property abroad, think about future growth. Experts are quick to predict the next investment hotspots, but sometimes it’s wiser to buy in more established, ‘safer’ markets, where its easier to raise foreign capital and the track record shows that it’s less volatile.

 

2. Maximise Investment Appeal

 

Does your real estate offer more than a just a bricks-and-mortar investment? Don’t think your location is just a physical place on a map. It’s a space filled with a vibrant culture and history offering specific amenities depending on its social, economic and political attributes.

Buying property abroad is about investing in a particular lifestyle. If your location is popular with expats, you might find a strong community of Britons which makes it a good retirement option. On the other hand, if it’s a tourist hotspot, then your property might be better suited to holiday rentals.

 

3. Define your Goals

 

Establish your goals to determine which location best suits your investment needs. Europe offers several excellent investment options. Places like Amsterdam and Budapest are trending in the buy-to-let market, offering tenants the hubbub of city living.

If you’re after something more relaxed, than the sunny Spanish coast is well-suited to holiday or permanent homes for retired Britons. Its Mediterranean climate, unique culture, relaxed pace and beautiful scenery is a wonderful choice for those who enjoy living the leisurely life.  

 

4. Know the Rules and Regulations

 

Make sure you’re aware of and understand all the property regulations of the area. Even though your lawyer and estate agent will be familiar with these, it’s worthwhile doing your own research before buying property abroad.  Don’t just rely on the professionals because they might have vested interests. Remember, with increased knowledge comes increased buying power.

 

5. Have a Final Checklist

 

This precaution will save you from unnecessary admin nightmares. Before buying property abroad, go through the fine print and clarify anything you’re unsure of. Find out; if the property has been registered properly, if the current owners complied with the property laws if there’s outstanding debt and if need be, what the contractual agreements with the current tenants are. These small steps go a long way in ensuring your purchasing process is as smooth as possible.

While investing in real estate offers greater flexibility and control, it isn’t as simple as buying and selling a trending stock on the local exchange. Picking the right location is one aspect while choosing the suitable professionals to assist you is another. For sound advice to help you assemble the best team, we encourage you to download our ebook, The Retirees Guide to Investing in Property.

You can also contact us for more information. If you’re already interested in Spanish property, then take a look at our beautiful apartments in Calpe. They could be the perfect fit for your retirement investment portfolio.

 

 Image credit: pexels.com  

Subscribe to our blog

Experience the Costa Blanca

Subscribe and you'll receive information on the real estate sector, interesting content on Calpe, Altea, Benissa, Moraira... and its surroundings, special offers and much more.