Buying overseas property
Buying property overseas can be risky but you can marginalize these risks by following a few simple steps. Investing overseas can have big returns, but come with some big risks. Do your own risk analysis before starting the whole process.
Firstly, hire a lawyer. Your chosen real estate company will no doubt tell you that you don’t need one, you can use their in house team and so on. However, remember that a lawyer will seek out anything hidden in small print regarding your contract with the real estate company, aswell as doing all of the formal legalities needed to buy the property. Also, you maybe surprised the cost of your own lawyer versus your real estate companies service fees are similar, or even cheaper.
Secondly, make sure you choose the right agent, who are honest and have client references to prove it.
Thirdly, if you are borrowing funds to pay for the investment, hire an overseas financial specialist. They will be able to advise you on the risks of interest rate and currency fluctuations over the period of the loan repayment. Tread carefully though as nothing is concrete, as many investors in Spain found out a few years back.
Lastly use a foreign exchange broker, if borrowing from overseas. Equally if you are transferring funds from one country to another they will be able to find you the best rates. If you need to pay in US$ for example, they will be able to source dollars that have been bought months earlier and you will receive a better rate.
It’s many people’s dream to own property overseas but for many it turns into a nightmare. Be careful!