Getting started: Building the right team around you.
If you have dreamt of owning a rental or retirement property in the sun there are certainly many opportunities out there. But as we have often seen in the media, problems with legal regulations, land ownership, buying through overseas developers and gaining the correct licenses for holiday rentals can cause huge levels of stress and be a financial strain on what should have been an enjoyable nest egg for the future.
With no previous experience buying overseas property, the first essential step to making your dream property abroad a reality is to build an independent team of experts around you, to support and guide you throughout the investment process. Any initial outlay of costs for getting an experienced overseas property lawyer or mortgage advisor on your team will be the best investment you make.
In the world of property, reputation is king. There are lots of companies who claim to make the purchasing process faster, easier and cheaper for investors, but you should be seeking out the companies that have actually stood the test of time with the proven experience to back up their service. So which experts do you need on your team?
• Currency exchange experts (If you choose to make an international money transfer through your bank rather than an independent exchange company, you could be missing out on significant savings that could give you enough to help towards these fees, or to renovate and decorate the property you buy).
• An experienced property lawyer (Ensure their experience is specifically in investing overseas. A property lawyer will help oversee all legal paperwork, land deeds, land ownership and licensing if planning to use the property for the rental market).
• An Independent mortgage advisor (An impartial oversees mortgage advisor will be able to give you unbiased advice, saving you money and ensuring you choose the best product for your situation).
• A property agent / sourcing company (To get access to the best deals, discounted properties and inside knowledge on the area you are considering investing in, a property agent with specialist knowledge of that area can save you considerable time and money. It’s also a great support and to have someone on your side throughout the whole transaction).
Overseas buying experts Europa Finance and Estates agree it’s essential to carefully build the right team around you early on… “Having a team around you that can offer advice and guidance is essential. Being able to benefit from the past experience of true property professionals is priceless. Our clients consistently gain great value from our 30 years in the business”.
Narrowing the search criteria (how to decide where to buy)
The Spanish property market continues to be a popular choice with Brits looking to invest overseas. Property prices in Northern Spain fell dramatically during the credit crisis and there are many discounted and repossessed properties to be snapped up. According to the Spanish Development Ministry, the sale of holiday property in Alicante alone rose by 24.3% in the first quarter of 2014.
Having bought investment property in Spain for over 30 years, Europa specialises in discounted property in this region and advises… “Deciding on an area to buy in comes down to your personal preference, if it is being used for family, or other peoples tastes if used for holiday makers”.
Taking the leap – when to buy?
All the latest reports on the Spanish property market show that Spain is providing one of the best overseas opportunities at the moment. Some say it is picking market trends and up and coming areas. Some say there are areas that hold prices well and are always investable. Europa estate and finance believes buying repossessed and distressed property is key to making money in property investment.
Protecting and building your overseas property portfolio in the future.
Property markets never sit still, so keeping an eye on a country’s exchange rate and economy is key to ensuring your investment property isn’t negatively effected.
It’s essential to always keep one eye on the local and national economy to be fully aware how your investment property might be affected, and when might be a good time to get out, or expand your portfolio further.
Of course, finding the correct buyer who will purchase the property for the correct price is what will clinch your decision to sell. When demand is high for a particular product it’s a great way of maximising your investment.
For further advice on making your dream of owning property overseas a reality, talk to our expert partners, Europa Estates and Finance.