Investing in Overseas Property Markets:
What is paradise? To some, images of pure white, sandy beaches rippling along the edge of azure blue waters which lap gently at your toes as you shade under the wild palms which shield you from the luxury apartments, top class bars and restaurants and all the leisure and entertainment you could wish for.
To others, this image goes a little further – imagine owning a piece of that paradise, and that ownership earning you more money than paradise really ought to. Realistic? Very much so, and overseas property investment is fast becoming something which an average household can afford; no longer are the words overseas property investment firmly associated with rich entrepreneurs with too much money and time on their hands to enjoy either.
Many opportunities in places such as Spain, Portugal, Bulgaria, and Cape Verde provide overseas property investment incentives such as 70% over 24 months. Such figures are impressive, but great care needs to be undertaken before any definite decisions as to whether overseas property investment is the right move for you.
The first thing which will be essential is that you do your homework. Overseas property investment can be a tricky subject if you are not fully familiar with every aspect. Knowing what stage build projects are at, for example, is likely to have a significant impact n price and return. Wide open spaces and gorgeous views may entice you to purchase an overseas property investment, but seeing the value of the property go down as the new high rise hotels and apartments in front of your property go up, is not likely to be met with delight. Similarly, understanding local assumptions, traditions, plans and issues are all critical before you set one foot into your bank manager's office.
Most overseas property investment projects are managed by the developer or their agency. It is critical that you seek independent financial and legal advice. Relying on the word of the very agency wishing to sell you the property is not in your nest interest. Every overseas property investment must be undertaken with a reliable advisor, familiar with the customs, traditions and local knowledge of the area in which you wish to invest.
It is also important that you know why you are interested in a overseas property investment – is it for your own accommodation, or as a holiday home for yourself, or as a permanently rented tourist apartment? This may well affect your ability to purchase and fund the project effectively.
many overseas property investments are in projects which are still part way through the build – in fact, many projects see all apartments and villas sold well before the final completion date. It is for this reason that you seek a bank guarantee, to ensure that the project will be completed and, if the worst should happen and the developer goes bankrupt, you will be entitled to a full refund of your entire overseas property investment. Should you not obtain this you would be very unwise to pursue the project further.
With these issues in mind, consideration of any overseas property investment should be safer and more in your favour. The choices from then on are yours, and then journey becomes extremely exciting!