Investing in foreign markets is very appealing for Britons with money to spare. With stories of huge investment returns abounding and recent trends certainly supporting ‘property abroad’ as a viable investment option, more Britons are getting in on the act. Whether they invest to simply make money from holding a Property and gaining capital appreciation, or they’re looking for full-time or holiday homes, Britons have a legendary love affair with foreign property markets. Buying abroad however does come with its share of potential pitfalls. Savvy buyers know this and look out for problems along the way.
In this article, we will discuss why to exercise caution when buying property abroad and examine some of the potential problems with overseas investing and how to avoid them in many cases. Whilst there are no guarantees in life, there are things Britons can do to protect their investments.
Some of the best advice for those buying property abroad includes: –
Hire representation. Even if you intend to buy in an English-speaking country such as Canada or America, having legal representation at your side is a very wise choice. In regions where English is not the primary language it is particularly important. Agents and solicitors can help you ensure that all legalities are taken care of properly and that a property transfer does indeed take place. The rules of the road for buying in places like Cyprus, Bulgaria and even France are different than in the UK, knowledgeable solicitors and agents will help you stay on the right path.
Study the market. Be very wary of the “next big thing.” Developing markets provide lots of potential, but they can also deliver a chance for very big failure. New markets that are not tried and tested are risky, be very certain that you want to invest in these areas and understand the risks that go along with markets that have never seen a full cycle.
View the property. Even if buying off plan, it is often very wise to physically travel to see the building site. Whilst most builders are very reputable, there are some bad apples out there; if buying off plan in Bulgaria, for example, you might want to trek there or hire a representative to delve more thoroughly into the development and the constructor. In some countries unscrupulous developers have begun construction, started to sell off plan and moved ahead without permission from the government to actually do so.
Beware of bubbles. Some markets are so hot right now it is hard to overlook investment potential. Study these markets closely to see if the regions really have what it takes to sustain the growth and the prices that are presently being commanded.
Some Britons who invest in foreign markets have found themselves sitting on veritable gold mines – others have found their dreams turn to nightmares. When the right amount of caution tempers investment fervor, it is possible to make very wise buying decisions in foreign markets.