Buying abroad for investment thread

Conrad

I wondered if anyone out there was interested in a thread such as this?

I beleive investing in foreign property is becomming ever more popular what with all the TV shows and huge swell in the number of foreign property UK based agents. It will become as if not more popular than UK Buy To Let.

I used to own a few properties I had let here in blighty but then sold in order to find new markets abroad.

If anyone is interested Ive investigated several property markets and bought in a couple of them.
Ive learn't the pitfalls on the way, such as try and find your own City based Lawyer rather than the 1 man band the agents recommend.

OFFPLAN PROPERTY:

This is the area that interests many investors. Essentially you part with a smaller percentage of the price up - front and pay the balance upon build completion. People can make a lot of easy money 'flipping' property contracts before the property is finished. This means you get exposed to the profit based upon the full market value even though your actual capital input is relatively small.

The key here is to seek reputable developers, preferably those with Bank guarantees in order to protect your deposit should the developer fail.
In order to sell - on a contract you need a viable second hand market. Such markets exist where there is good demand year round. A large development with golf and facilities often proves a popular choice as demand for such property tends to be high.

CITY Vs TOURIST?

Personally when considering a new market I tend to go for City property (where a local second hand market exists) unless the touristic areas have a long season with high tourist demand. Bulgaira isnt fo rme but if I had to buy there I would buy in the capital not the tourist areas.

I go for tourist developments if there is a real demand typified by a genuine second hand market. I go for developments with very good facilities and golf to maximise marketability. A year round season is a real plus. Remember it is easy to get carried away in the Sun but try and think about how a plce will be in mid - winter. Some places virtually shut down.

FLY TO BUY

Many investors look for new airline routes as there is no doubt new airlines generally give a significant boost to surrounding real estate.

HOW FAR?

Some people of modest means invest all over the world. Indeed when I first started I went to the Bahammas.
Personally I now tend to prefer close destinations as I find it generally easier to deal with, for example if you have to sign legal papers.

DO YOUR HOMEWORK

The key reason some people come unstuck is they switch - off thier brain and engage thier heart when it comes to buying abroad. Thier endeavour takes on a dream -like quality and sometimes they put all trust in agents and developers. I hear things like this "the contract is very vague but they are such nice people Im sure everything will be ok"!!!!!!!!

Big mistake.

Ask questions. Ask lots of agents lots of questions. In the end you will shake out the truth. Then make sure the contract covers everything for example for new build: - 'garden included'. ASK - for a written definition of garden, will it be a patch of earth or lawn with a hedge boundary.
Protect yourself and try not mto go for countries where state corruption is rife (eg Bulgaria).

Anyway, I ramble. Just thought Id start a thread on this subject.

flyer

Good post. I'm just buying a place in Morocco. I have to pay the developer something like 35 000 euros in the next couple of weeks. Any idea of the best way to do that?

flyer

that was a good thread :rolleyes::rolleyes::rolleyes::rolleyes:

ellie14

I owned a property in Spain but when I came to sell I lost a lot in local taxes ,hardly ended up with anything over purchase price ,Its left me a little wary but apreciate any advice ,areas to go for pitfalls ,may give it another go sometime.Good thread .

mroller

A good idea indeed.
I am looking to invest abroad as well, I have heard that germany is a nice place to invest in, prices have stagnated since reunification and are due to rise. And the rentall yields are very good. Note that I am still doing my homework on this.

Beside this I also own a property in Morocco, prices have recently rocketed in the Rabat and casablanca regions.

Cheers.

THRIFTY1_3

Good and interesting post Conrad.

Flyer - with regard to making your payment to Morocco, check out a couple of the other threads regarding making large payments abroad. Most discuss the pros and cons of using your bank or the alternative foreign payment Companies. Personally I use an online Foreign Transfer company, they seem to offer a much better personal service, not to mention a better exchange rate.