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Buying Overseas Property

Copyright 2005 Hugh Griffin

Fourteen Top Tips for Overseas Property Investment:

1.

Copyright 2005 Hugh Griffin

Fourteen Top Tips for Overseas Property Investment:

1. Buy what you want to buy. The most important decision
when buying a property is deciding exactly what you want
the property to do for you. Is it purely for short term
capital gain to provide a one-off profit over a particular
period of time? Or is it to provide long term regular
income? Or is it mainly for your own use as a holiday home?

2. Ignore the hard sell. Many people go to dedicated
overseas property exhibitions or go on overseas trips or
"inspection flights" to view properties. It is important to
stay focused on what you originally had in mind. Do not be
swayed by the hard sell of estate agents.=20

3. Be careful buying off-plan. Off-plan involves buying a
property before it is built. You cannot see exactly what
you are buying and it can be a long time before the
property and surrounding development is completed. Problems
can arise if the building is not constructed according to
the original schedule.

4. Allow 10% extra for expenses. The cost of buying a
property abroad (taxes, conveyancing, lawyers fees, agents
fees, VAT, etc) can be much higher than in your own
country. The total can add up to 10% to the cost of buying
a property.

5. Buying in an up-and-coming area. This will increase your
capital appreciation. Buying in the fashionable areas of
Spain or France means that property prices are already
expensive and may not increase much further, or increase at
a slower pace than in the past. Buying in a
less-fashionable area of Spain or France, or in the
up-and-coming property markets of Bulgaria, Turkey, and
Croatia where prices are still low will increase the chance
of a rapid price increase. It is important to note that the
less-fashionable and up-and-coming areas still need to have
all the virtues of the more established destinations. What
you are really looking for is an undiscovered property
hotspot. Often such places are neighbouring the more
fashionable and expensive areas.

6. Buy a property in a place that is popular with locals as
well as tourists. You should always think of the exit route
from your investment. The day will come when you want to
sell your property and you will want to have the largest
possible potential market. Ideally your investment property
should be an attractive property for investors of different
nationalities as well as a possible home for local
residents. =20

7. Adequate shops, restaurants, and facilities. Most people
who want to use a property as a holiday home will want to
be near shops, restaurants, and other facilities. This is
particularly important if you want a rental income from
your investment.

8. Is there an airport nearby? Is there adequate public
transport? People who rent property will want somewhere
that is easy to get to and will often gravitate to those
places with a nearby airport.=20

9. Consider the property off-season. The property and area
might look lovely in summer when all the restaurants and
bars are open. But what about winter? Do all the facilities
close? Does the area become a "ghost town"?

10. A room with a view. A view is a major bonus from both
the rental and the resale perspective. A sea view is top of
most peoples list but rural or mountain views can be just
as stunning. Nothing beats sitting on a balcony or roof
terrace wathcing the setting sun. Beware though that views
can change and your beautiful view could be replaced by a
view of a new concrete apartment block. Check local
planning regulations carefully!

11. Check the inheritance laws of the country where you are
buying. You may need a separate will made in that country
as well as a will made in your home country. In France for
example your children automatically inherit your house;
your estate does not pass to your spouse.

12. Get your own independent advice. Do not rely on a
lawyer recommended by the property agent or developer.

13. Learn the language of the country you are buying in.
You don't have to become fluent but you should learn as
much as you can.

14. Above all, buy a property YOU like in a place YOU like.
The chances are that if you love it and would enjoy staying
there then others will too!

----------------------------------------------------
Through my website at http://www.saharapress.biz I provide
independent advice on buying property abroad. With many
years of experience my advice is highly recommended by past
clients. Follow my guidelines at
http://www.the-place-in-the-sun.com if you are considering
buying a home or investment property abroad.

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