Property abroad

MarkBowness

I really want ANYONES thoughts and feedback here. In the area that I live in it would cost me about 100,000 for a 1/2 bedroomed flat. However it would cost me about 40 - 50k for a 3/4/5 property abroad.

I also publish two magazines that would enable me to freely advertise the property that I could buy, in terms of renting out the accommodation which would cover the cost of the mortgage and give me a bit extra to stick in the bank.

I would love to know people's thoughts from how easy or not is it to get a mortgage for such a property? Has anyone done this? Are there any rising areas in Europe / World that will become popular holiday desitination etc.

If anyone could give any thoughts I would appreciate it. Just seems little point buying in the UK but is this a potentially good idea or not?

For your info. I rent a property in the UK.

Mark

Fairdo_2

Firstly, to answer your question about up and coming places, it seens that Bulgaria is becoming the good value retreat and investment potential. However, with up and coming, rather than tried and tested, you need to be aware that you could become one of the Guinea Pigs rather than learning from other peoples mistakes.

Bear in mind that wherever you aim to buy, you must be aware that there are different legal processes to follow. You are also placing a great deal more trust in these "experts" abroad for certain stages. For example, the information regarding full Land Ownership on a property you may buy. I have heard stories about people buying in Spain (where there is a lot more general knowledge available). For example a chap who put his life savings into a flat in Spain, bought through a local estate agent who had also recommended the legal representative. It transpires that the Title Deed was a fake and could have been spotted by someone with local knowledge of the process, but when the owner banged on his door asking for rent money meant he now has to spend time and money trying to recoup this through criminal proceedings.
Also there have been lots of scare stories about people buying their dream homes to find developers being able to build on land they thought was theirs!

My view on wherever you would go, would be to try through recommendations of people already settled, to deal with reputable firms and maybe minimise the risk of co-ersion by using seperate legal people to those recommended by agents. My view only and no guarantee that you could not be ripped off!

I also have another concern that if you have not bought a property before, it makes it even harder for you to buy abroad as you will be going into a completely different system elsewhere, without the benefit of having even been through the UK system (Bearing in mind that the process in Scotland is radically different to the rest of the UK)

It is catch 22 as many first time buyers find it very difficult to buy in the UK at the moment.

From my professional experience as a Mortgage Broker, I know there are ways to get mortgages in the UK for many of these people, IF the repayments are affordable. This information may not be readily available to all first time buyers if they just go to their existing bank, as they do not all do every type of scheme.

Such schemes, for example, allow parents to be involved by acting as Guarantors. There is also a scheme that has now been launched by a second lender (so others may join the bandwagon soon) where they do not act purely as a Guarantor, but the parents income can be included in the affordability calculation, with a technical twist to keep their name of the Title Deed of the property.

Obviously, schemes have to be considered on individual merit and affordability has to be key.

Hope this is of some help, or allows others to add in more detail.