May 26, 2016
While you may think that buying a property is the same anywhere in the world, this is misconception that can have devastating consequences. While there are a number of reputable partners and resources available to UK home buyers – openpropertygroup.com, for example, purchasing real estate abroad is far more complex and fraught with genuine risk.
So while buying property abroad may appeal as an international investment option, it is one that requires careful consideration before you proceed. Otherwise, you run the risk of losing a considerable sum of money and impacting negatively on your investment portfolio as a whole.
3 important considerations when buying property abroad
While it is crucial that you seek out expert guidance and detailed advice when buying international real estate, there are some universal considerations that will at least help you to start from a position of strength. For example: -
Go through contracts in detail before signing
Contracts represent the single most difficult challenge when buying a home abroad, especially as it is commonplace for more than one document to be produced (one in English and one in the local language). This can cause confusion and difficulty, so it is important that you have the English version reviewed by a legal authority while also translating the second document and ensuring that there are no discrepancies. Pay particular attention to the deposit amount required, while also checking whether any monies are refundable or otherwise. It is also important that you read the small print and check what precisely is included in exchange for the purchase price.
Include an opt-out contract clause when buying
Financing a domestic property purchase can be difficult enough, but there are far more things that can go wrong when investing in international real estate. If you are unable to finalise your finances before contracts are discussed, it is crucial that you state this in the document and strive to include an opt-out clause in the event that the loan is not agreed. Make sure that the amounts are detailed precisely and in both relevant currencies, as this will also help you to protect your deposited funds should anything go awry.
Invest in an in-depth Survey and Valuation
With the rise of new build property in the UK, the need for detailed structural surveys has diminished in recent times. This is imperative when buying abroad, however, especially when you consider the structural and architectural differences that exist between buildings in different countries. With this in mind, make sure that you invest in an independent valuation and an in-depth structural survey, as this will highlight any instances of subsidence or damp that can impact on the purchase price (and the subsequent value of your investment).