Investing in a property overseas is often a very tempting and lucrative option. What’s better than buying property abroad where the sun is always shining, the waters are warm, the cuisine is incredible, and the beach is only a stone’s throw away? Not much – especially if you can rent the property out while you are not using it. It’s a great way to have a frequently visited holiday home, and to get a little extra money in your pocket every month
While it is an attractive prospect, there are also some massive risks when buying property abroad. Often the rules and regulations, as well as processes, can be different to those in the UK, and language barriers can often cause havoc. There are numerous cases of Britons losing their money when buying property abroad – and the sad thing is that in most cases these situations could’ve been avoided.
Here are the dos and don’ts that you should stick to when investing in property in a foreign country:
Do research the market thoroughly
Sure, there are global trends in the worldwide property market, but they can also vary from country to country – and what might be a significant investment in one country may not be in another. The property market tends to go in cycles and especially if you are looking to sell the house on – then you need to do your research to ensure that you hit it at the right stage. Buy when the prices are low and sell when they get high – or if you plan on retiring there – make sure the area is on the way up and that you aren’t going to be stuck in a retirement home in an area that is going to get worse.
Don’t rush into anything
While it can be tempting to get stuck in immediately, especially if you have found your dream house, you need to take your time when buying property abroad. Do your research on the area and the rules of purchasing for foreigners in the country of your choice. Look at more than one property in the area and make sure that everything is in order with any property before you put any money in.
Do get independent legal representation
One of the biggest mistakes that people make when buying property abroad is that they don’t seek independent counsel when it comes to legalities. This goes from a lawyer to oversee the actual process to translators and interpreters. You need to seek your own counsel and not go with someone who has been recommended by the owner/agent/developer of the property that you are buying. More often than not, these people or companies will have the other party’s interests at heart, and that means you are more than likely going to be the one that is taken for a ride.
Don’t forget about the exchange rate
When buying property abroad, it’s essential that you keep the exchange rate in mind to correctly calculate the costs of your investment. Make sure to consult with professionals about the exchange rate before you pay – or state in the contract that your payment is not to be affected by fluctuations in the exchange rate. Remember though that it’s a double-edged sword because you could buy property when the prices are stable and if their currency weakens, then you could get the property for less. Do your research about it and know what to expect.
Do use an experienced agency
While it is possible to go through the owner (and maybe a bit quicker) when buying property overseas – it’s often the best choice to go through an established and experienced agency. Check out their reviews and previous dealings, and ensure that they don’t have any dirt attached to their name. Going through a developer, owner or relatively unknown agency is hazardous, and there is a good chance that something could go wrong with the deal.
Make sure you use a reputable real estate company that is known for their excellent business dealings and honesty. Here at Seanest, we are a renowned company that acts with absolute integrity and professionalism with all of our clients. Have a look at our property for sale Costa Blanca, and you will discover some of the best investment properties in the country.