The Nine Essentials for Successful Overseas Property Purchases
If there’s one thing any prospective overseas property buyer should be aware of it’s this:Buying abroad is a very, very different experience to that of buying on home soil!
Admittedly it’s a bit like stating the obvious, but it’s so often overlooked that it really does warrant repeating…and repeating…and repeating some more. Remember this at every step of the way and chances are things will go a lot smoother – we all know what assumptions make, after all.
With regard to avoiding the most common pitfalls of all, here’s a quick look at a few prime examples of behaviors that will stand you in a good position from start to finish:
Map Out Intent
First and foremost – what do you plan to use the property for? Will it be a holiday home for you? A retirement home? A rental? Maybe a property to fix up and sell on right away? Whichever you choose, you have to accept the way in which it will mold the decisions you make. For a rental property for example, you have to disconnect yourself from it emotionally – you’ll never be staying there, it’s just a business tool. And if you will live there, does a pretty garage matter more than good schools and excellent healthcare? You have to know what you want before you can hope to get it.
Consider Competition
If you intend to rent out or sell the property, be sure to choose an area that isn’t overloaded with competition already. For short stay rental properties, you’re instantly in trouble if the area is littered with hotels, for example. If on the other hand you’re planning to live there, think more about long-term property values in relation to the other home designs and properties around.
Size Matters
And at both ends of the spectrum too, so be careful and crafty when choosing. For example, large penthouse properties are desirable and look amazing, but they don’t tend to bring in too much profit rent-wise. Likewise, smaller properties will always net you more in terms of profit, but it’s unlikely that you’ll end up with tenants that intend to stay for a long period of time. Weigh up what you expect in terms of profit and how long you’d like your tenants to stay when choosing a size.
Get a Lawyer
Even if you think you know what you’re doing at home, chances are you don’t when it comes to overseas properties. Take on a legal representative that specializes in your chosen country or you risk walking face first into something that once you’ve signed to, there’s not a damn thing you can do about it!
Insure Well, Insure Immediately
And finally, make sure that the very moment the property falls into your possession it is fully and comprehensively insured against pretty much everything. So many first-timers overlook this hugely important consideration and end up bearing the brunt when things go wrong in the early days…as they so often do.
Read, Check, Read and Check Again
And finally, when it comes to having the place checked and reading through your contracts, the correct number of times to do so is always once more. You cannot be too careful as once you have signed on the dotted line, it really doesn’t matter what you come across that you aren’t happy with – it’s now your problem. It’s one of the most important decisions of your life, so treat it as such by taking your time, relying on independent advice and always checking everything a thousand times over.
Budget Realistically
Accept from the start that you will have to pay at least 10% of the total property for sale Monaco price again on things like taxes, legal fees and the other services you’ll be using. And that’s without factoring in changes to international exchange rates, which could very easily see a bargain become an overpriced waste of cash. Budget realistically and make sure you’ll be financially sound no matter what happens.
Choose Your Market
Just because you like an area does NOT mean it’s a good idea to invest there. Not only is there every chance that the place will hemorrhage money from day one, but some countries and regions make it so difficult and perilous to invest there in the first place that you’re better off not bothering at all. You need to balance your personal preferences with the hard facts and data about the place before making your first move – never buy on a whim.
Enlist the Right Help
You’ll need professional help every step of the way, but in order to ensure that said professional help really does have your best interests at heart, you also need to make sure it’s independent too when regarding property for sale Monaco. From lawyers to surveyors to builders and so on and so forth, if they have anything resting on the deal whatsoever, their advice is guaranteed to be biased.
