Property Abroad - Overseas Property Considerations
If you are considering buying a property abroad you probably have a fair idea of what you are looking for. Assuming you know which country you prefer and the location within that country, lets look at some more basic considerations before you buy your overseas property. For example, would you like to be near the sea or inland? Do you need access to schools and/or work in your new home or will your property abroad be for pleasure? When thinking about the sort of overseas property you'd like to live in its worthwhile being flexible. After all, buying a property abroad and living there is very different from going on a holiday.
The benefits of being flexible are evident in the following story which happened to a couple I know personally. Their dream of buying a property abroad wasn't as straightforward as they may have initially thought. Here's what happened...
Julie and Kenneth had a dream of buying an overseas property in Greece, not to have an annual holiday in but to live in permanently. They had two sons aged 10 and 14 and dad needed access to the main town for work, whereas mum wanted to be close to the beach and the shops. they chose the island of Crete as they had been on holiday there every year for eight years. Their plan was to buy an old traditional Greek house, spend two years fixing it up and renovating it, then moving to Crete permanently after completion.
Kenneth was convinced he could obtain an overseas property to renovate for less money, and after renovation would have a bigger house than their budget initially allowed. They planned to spend £50,000 on the property and £30,000 on renovations. Coupled with a £5,000 contingency fund their total budget came to £85,000. Due to work commitments in the UK Kenneth couldn't leave for two years although his boss granted him extra holidays to oversee the work on his new overseas property.
Both Julie and Kenneth expressed their love of older houses and especially the idea of having a traditional Greek house overlooking a beach and a beautiful bay.
During our conversation I asked if they would consider any other type of property and conveyed my doubts about their dreams and their realistic budget levels. In the end I suggested one more trip to Crete for another look around before investing in their property abroad.
Upon arriving in Crete they followed my suggestion and made an appointment with a reputable local property agent. After explaining their budget and requirements it soon became apparent it was going to be more difficult than they initially thought. The agent explained that traditional properties near beaches or overlooking bays were virtually impossible to obtain and certainly couldn't be purchased for the kind of budget available to them. However, he suggested they take a look at a brand new apartment complex near the sea that was recently completed.
Julie and Kenneth felt their dream of owning a property abroad was ebbing away and at that time a new-fangled concrete flat was the last thing they wanted. The Greek property agent took them to the complex and they quickly changed their minds. Not only was the new apartment finished to a very high standard, but the 12-unit complex had its own pool, sauna, gym and gardens. Upon entering the apartment their faces lit up as they saw the brand new kitchen, two spacious bedrooms and living area, complete with a roomy balcony and a view of the sea.
The agent also explained the benefits of not renovating a traditional house and having to deal with contractors, undertake legal affairs, etc. Since they could not actually live in the property for two years, the new apartment could be rented out to tourists in the meantime, generating a substantial cash boost. The cost of this new apartment in crete? Only £80,000 including all appliances. With a short walk to the beach and many facilities in-house, Kenneth and Julie were sold.
It pays to take all options into account when buying a property abroad and not to be inflexible unless you have a substantial budget. Julie and Kenneth found a maintainence-free apartment in Crete that was in-town yet near the beach simply by being open-minded. More importantly it helped make their dream come true of owning a property abroad.
Property Abroad - Property Considerations
Overseas Property - Before You Buy
Overseas Property - Before You Buy Property Abroad
There are many rules to abide by when purchasing a property abroad, but one of these rules is golden. In fact it's so golden its sheer shineyness almost blinds you. What is this golden rule?
Always make sure all property, people and prospects you deal with are legitimate!!
What am I rambling on about? Alright, lets imagine this scenario. You and your wife have invested all your life savings into an apartment on the Spanish coast. It was purchased in good faith and you are extremely pleased with your little slice of heaven. Your venture into buying property abroad has paid off and everything seems great.
Then one day a letter falls through your door. Its from the Spanish authorities. It turns out the developer has built your apartment block without planning permission and the authorities are refusing to grant it retrospectively. What does this mean? It means:
1. Your overseas property is illegal
2. You may have no rights
3. Your property may be demolished. Thats right - DEMOLISHED!!!!!
Can this really happen? You bet it can, and the Spanish authorities are cracking down on apartment buildings, villas and other properties that have been erected without permission, sometimes in protected areas. Before you buy your property abroad remember the golden rule above before you are caught in the middle of a ruling between the developer and the authorities.
If you have realplayer on your computer I highly recommend watching the BBC programme "Real Story" which has run an excellent investigation into this very topic.
Watch "Pain In Spain" with realplayer NOW
Visit the "Real Story"on the BBC website.
Don't let the programme scare you off - it simply demonstrates what could happen when purchasing a property abroad and it illustrates my point exactly.
Finally if you are dealing with lawyers, agents, property developers and anyone else in foreign countries - CHECK THEM OUT! Don't settle for someone simply because your friend used them - perhaps they diddled your friend too and he doesn't even know it!
Investing in a property abroad is a serious business, so treat it that way and be cautious.
Property Abroad - The Author
Property Abroad - The Author
Thankyou for visiting this small but rapidly developing web blog. Bookmark it now as I add articles and information every day and the site is constantly updated. Now who am I?
I am a successful property developer from the United Kingdom with 30 years of property investment and development under my belt. Now living in Scotland I have stepped back from industrial and commercial development to concentrate full time on my own overseas property business. My portfolio consists of over 90 properties abroad, mostly in Europe, and a dozen land developments. I never talk about my company or name, or my exact properties to avoid affecting current business I am doing.
Buying a property abroad can be daunting, to say the least, and that is why I have decided to incorporate this blog into my daily routine. I am tired of watching people losing their life savings or falling victim to foreign property laws or property developers. I may own a considerable amount of property abroad but all my overseas properties have been obtained with the highest of business ethics and honesty.
There is no charge for the information on this website, and the only subscription is to my RSS feed which is free and keeps readers up-to-date. If you are considering buying a property abroad there may be many factors you have not considered or given enough thought to. I would suggest keeping the following in mind when reading through this website:
- Keep an open mind and be open to suggestion
- Remember nothing is too simple to consider
- Dont assume you know it all - nobody does
My goal is to able you to access information that either eludes the regular buyer and investor in overseas property or simply may not be available due to lack of experience. Often buying a property abroad is the largest investment many people will make outside their own home in the UK. Let me assist you with your dream of owning a property abroad. Bookmark this site now.