Those who wish to buy overseas should first ask themselves ten questions, says property consultancy JPMWorldwide
As with any investment, those buying overseas should get as much information as possible and consider every possible outcome before deciding on a plan of action. JPMWorldwide, an international property consultancy with over 30 years’ experience in the overseas property industry and a portfolio of properties in such desirable locations as Spain and South Africa, suggests asking yourself the following questions before buying.
Am I ready?
Before you even start trawling through the internet or picking up the phone, spend some time deliberating over what it is that you want from the property. There are so many options available across many different markets that without a clear idea of what you want from the property you are likely to become very confused very quickly.
What are my options?
One of your major decisions is whether your purchase is first and foremost for your own use or as a capital investment or to provide a rental income. This will help to identify what type of property you wish to purchase and, of course, where.
Where in the world do I buy property?
One of the main things that you must do, particularly from an investment angle, is to look at the property market that you wish to enter. The object of this research is to see how the economy is progressing and where it is heading.
Where do I start? Take advantage of a property consultancy company, as this will reduce the worries and stresses throughout the purchase process. It will be particularly useful if they have offices in the UK as well as your chosen country. You should then be able to form a relationship before you undertake any inspection visit and be confident that you will make the best use of your time abroad.
Should I let the property?
Although this is an excellent way to generate some extra cash, it can use up a lot of your time and energy. One important thing to remember is never to be persuaded to buy and then have to rely on renting to cover a mortgage. Renting your property is not always as easy as it sounds and you don’t want to risk losing your property if you can’t pay the mortgage. With some investment properties a guaranteed rental income may be available.
How well do I know the area?
It’s a good idea to talk to people who have purchased in the area that you’re looking at. Hearing about the pros and the cons can help with your buying decision. Knowing what facilities are available are particularly important if you plan to rent so that you can inform clients of what the area has to offer. Key attractions would be golf, beaches, and rural and town settings.
Should I make an inspection visit?
This is dependent on two main factors: why you are investing and whether you are using a property consultancy. If you are buying your 'dream home' then JMP feels that it is vital that you visit the site and area. If you are buying purely as an investment and you are doing so through a consultancy who have specific knowledge of the country, area and site, then you should be confident that your consultancy will advise you correctly. A good consultancy will be able to focus you on the elements of an investment that will and will not make you money.
How can I avoid any pitfalls?
Use a solicitor who is recommended by the locals. Also make sure that the solicitor is fluent in your language, as well as that of the country you are buying in.
Is it all too much?
If you’re not clear about any point of the purchase process, make sure you ask for an explanation. Don’t be blinded by jargon that you don’t understand.
Are there deals to be had?
There are often offers, particularly with mortgage options and payment terms, so don’t be shy about asking. It’s also worth enquiring about the possibility of a furniture package or other reduced-price extra.