Although the pound isn’t quite so strong as it was even five years ago, it still holds its own on the global market, which can make investing in property abroad, where the prices are cheaper, an attractive idea for many people who are looking to make their money work from them, and hopefully get a few cheap holidays into the bargain too.
There is no denying that buying property abroad CAN be an excellent investment, but if you’re thinking of giving it a go yourself, there are a few pitfalls that you will want to avoid…
Not Understanding The Contract
The number one rule of signing contracts is that you should never do it unless you know exactly what it says. This can prove problematic when you’re buying property in another country where a different language is used, and it can lead to you paying more than you thought, tying yourself up in unnecessary red tape, and in some cases, losing all of your money entirely.
That’s why it’s always sensible to hire a lawyer who speaks both of the languages involved in the process fluently, and preferably one who is fully fluent in property law where you’re buying. Fail to do this, and you could end up with a lot less money, rather than the nice profit you expected.
Not Getting An Agreement In Principle
If you thought arranging a mortgage in this country was difficult, wait until you invest in foreign property! Not only do you have the language barrier to contend with, but you also have to think about the exchange rates and even how minor fluctuations can affect your deal. That’s why it is usually a good idea to get an ‘Agreement in Principle’ for your fiance before you pay a deposit or sign any contracts on your overseas property. Fail to do this, and the deal could be much more expensive than you would have liked, and again you could end up losing money.
Not Seeking Specialist Advice
I hinted at this above, but it is worth repeating that, if you’re buying property abroad, you need to access specialist help from lawyers, mortgage advisers, valuers, surveyors, architects and possibly a whole host of other professionals before you even think about putting down a deposit. You would do this when buying a property here, wouldn’t you? So make sure you do the same when buying abroad, using experts who know how things work over there.
Not Choosing The Right Location
Whether you’re investing in overseas property with a view to selling it on at a profit, renting it out to holidaymakers or renting to locals, you need to ensure that you choose a location that your target audience will be interested in. If you fail to do this, then, you could find yourself unable to make money with a sizeable mortgage to cover, and no one wants that. Do your research!
If you can avoid these pitfalls of buying a property abroad, then there is every chance you could make it a success and start making money almost immediately.