More Britons than ever are opting for either an overseas investment vehicle or a complete change of lifestyle. But what should the prospective purchaser watch out for? Russell Wilson, managing director of Royal Bay Oroklini in Cyprus, offers some tips.
Hectic lifestyles, rising house prices and the British weather are just a few reasons that nearly 200,000 Britons a year are moving overseas. Analysts predict that the exodus is set to grow, as the UK’s ageing population means there are more retirees able to move abroad and the growth in budget airlines makes it cheaper to get to Europe and the Mediterranean.
Figures released in November 2004 by the UK Office for National Statistics showed that 190,000 Britons moved overseas last year – and this figure does not take into account people who are spending between six months and a year abroad. The figures show a 50 per cent increase in the number of Brits moving overseas since 1998.
But prospective overseas buyers must be vigilant and thorough if they are to find a foreign property that they will be happy with. Presently, some overseas buyers show signs of a condition that I call Air Madness. This debilitating syndrome seems to strike during the plane journey to sunnier climes, and strips the human brain of the capacity for all the usual rational thought processes that people go through when purchasing a property in the UK. The result for sufferers is that they settle for a sub-standard residence, albeit in a warmer climate. People would not settle for an uninsulated, uneconomical, damp property without a proper Title in the UK, so why do they abroad?
Having been in the property business for over 15 years, I have seen signs of Air Madness more than a few times. Warm weather coupled with a two-hour or more plane journey seems to influence people into buying a property that they wouldn’t think twice about in the UK. How many people do you know that would happily buy a property in the UK that was prone to damp, subsidence, structural cracks and cost a fortune to heat in the winter or cool in the summer? Nobody, you would think. But thousands of people are doing just that all over Europe and the Mediterranean. Some don’t seem to realise that even the hottest climates have distinct seasons and the homes there require heating in the winter, just like in England.
That’s when they realise just how much this costs and begin to regret the purchase. But by then it is too late.
Purchasing a property in the UK is a lengthy process, taking on average two to three months from agreeing the sale to moving in – and that’s usually only if everything goes smoothly. It takes this amount of time to conduct all the surveys, legal proceedings and estate agency dealings. With newer properties it is vital to check that all the planning permission has been granted and that building regulation requirements have been met.
However, on a break from the office and awash with the local tipple, it is tempting to sign on the dotted line for a property you have only seen once (if at all), never mind having a structural survey completed or assessing what the area will be like out of season. The laws regarding the purchase and sale of property in some countries are full of holes and an open invitation for dishonest sellers to exploit a foreign buyer's ignorance. And that’s when the dream can turn into a nightmare, before you have even moved in:
Home buyers in the UK can get frustrated at how long it can take to buy a home, but they should be glad that the process is thorough and governed by law. In foreign countries, I have heard of all sorts of sorry situations: people signing up for the wrong house, signing contracts written in a foreign language without an interpreter – and even handing over cash deposits, returning to the UK to say goodbye to family and friends only to find when they return to move into the house of their dreams, it doesn’t actually exist and the so-called agent has scarpered. Others have discovered that the resort out of season is not much more appealing than Morecambe in March – or that the house is actually falling down!
It sounds unbelievable that British people could be that gullible, but the frequency of these occurrences is frightening.
If you are considering a move abroad, make sure you look into the local laws concerning financial transactions and the legal status of foreign buyers. As for the property itself, find out the following:
What will the house be like in winter? Is it insulated and how much will it cost to heat? Similarly, in summer, what will it cost to run the air conditioning?
What is the area like out of season?
Will the house rise in value? Don’t assume it will just because the British house market is buoyant. Other countries have house price cycles out of step with the UK.
What land is the house built on? What was there before the property was built? Is the Title guaranteed?
What materials is the house made of? Concrete houses fail to meet most EEC building regulations.
Does the property meet any building regulations?
Is there any kind of security system?
It is estimated that nearly one-fifth of people who move abroad regret their decision within the first year for a number of reasons. However, by applying the same approach to buying property abroad that you would in the UK, Air Madness, or the loss of a sane, logical, thorough approach to home-buying, can be cured and your move abroad will be a successful one.
Royal Bay Oroklini is a luxury development of 30 detached villas located in the Larnaca region of Southern Cyprus. These homes are environmentally friendly and the build project is supervised by a quality UK-based company who have appointed a team in Cyprus to manage the design and construction. Villas at Royal Bay meet all UK and EU standards and are backed by a ten-year building guarantee similar to NHBC’s.
Phase one is almost complete and phase two has just been released; off-plan prices start from CY£230,000 (approximately £276,000 sterling). For more information about Royal Bay Oroklini visit luxurycyprusvillas.com