There’s a reason that so many people choose to invest in property: if done well, it can prove to be very lucrative. If you are buying in your home country, then you may be familiar with how the property market works and selecting a good investment could depend on the condition of the property and the potential rental yield or resale value. When investing overseas, however, this becomes a much more complex process.
Here are some essential tips that you need to know before you invest in international property.
Exchange Rates
You may be searching with a budget in mind, but in order to invest in overseas property, you need to be aware of fluctuations in exchange rates. Even the smallest drop could result in a property being out of your price range and subsequently affect mortgage rates. This means it is imperative to keep up-to-date with exchange rates, especially with Brexit’s impact on the pound.
Investment Only
If you are looking to buy a property overseas as a holiday home or perhaps for relocation, then this will not apply to you. However, when looking to invest solely for monetary purposes, aim to stay emotionless. This is a purchase that needs to deliver the best return and offer the best financial gains, so base all decisions on facts and figures, not your personal preferences.
Document Translation
This may seem obvious, but always ask for translated copies of documents. While you may have your heart set on an investment, you need to understand exactly what you are signing and agreeing to. Even if you are fluent in other languages, when handling legal documents, it is always advisable to do so in your mother tongue due to the complexity of the language.
Estate Agents
Buying property overseas involves different processes than it would at home. To make sure you are making a wise investment – and understand exactly what you are getting for your money – speak to an estate agent. Agents like GVA Worldwide specialise in international property and can provide you with an expert adviser, who can supply information on the local market and assist you through the buying process.
Legal Representation
Depending on the country where you intend to purchase, an agent may have their own legal team that you can use. However, buying abroad can pose a high element of risk. As such, it is always advisable to hire your own legal representation. While this may cost more, it is money well spent, as having an independent lawyer helps to ensure that you receive accurate information.
International property can be tricky but if done right, can be financially rewarding. Always seek advice where needed, do not sign anything you are unsure about and carry out lots of research before committing to purchase.
