Buying property overseas has become more and more popular this is demonstrated by the fact we have an increase in the number of people who now own a home abroad. Investors are also on the increase and with so many emerging markets overseas property investors are spoilt for choice. The Bank of Ireland reported that Ireland's keen property investors were now having a beneficial impact on the countries economy. All the indications are that owning a home abroad is here to stay
Your objective ask yourself some questions
When buying a property abroad it is essential to know your objective. Is the property simply an investment or is it somewhere to live or visit. Do you want short term capital gain or do you want it to provide a one off profit over a particular period of time. Is the property to provide a long term regular income? Or are you buying off plan/pre construction and intend to sell before completion.
Golden rule keep your cool
When buying property abroad you need to stick to your objectives and never buy unplanned on a holiday. Lack of planning may mean you might live to regret the purchase you are about to undertake. A cool ahead is essential, ignore the pressure some agents may pile on you. It's a good idea to see your chosen area at varying times of year. A self imposed cooling off period will make sure that you have not bought in haste.
Buying property off plan
Buying a property at the drawing board stage or pre construction can be very rewarding. It is possible to be an armchair overseas property investor and have no intentions of visting the region.Developer's need the extra finance and can give some impressive incentives and return rates
Questions to start with
1. What guarantees do I have that the developer would not go under or this project would not go under?
2. Will my deposit be placed in an Escrow account
3. Tell me about the building company, what work have they done in the past
4. Has the builder secured planning permission and local permissions for the project
5. Are there any legal safeguards for foreign investors in the case of non-completion or poor construction work by the developer?
6. If I decided to sell before completion of the project, would that be possible and would I be penalized in anyway?
7. How easy is it to buy and sell property in this country? 8. What if I decide to sell my (residence/hotel suite)?
9. Are there any other fees while the project is being built and what about after completion?
10. What do you anticipate the rental income to be once the facility opens based on current rates at similar properties?
11. What is the payment schedule
12. What happens if the building is delayed
13. What is the rental yield I can expect?
14. What are the tax and inheritance implications
15. What is the buying process in this country
Buying property overseas safely
Overseas property buyers should take advice from qualified solicitors or other independent professionals and ensure that sales documents, title of property, building permits and registrations are correct and translated into the language of the purchaser.
