Comments

1. Paul Collins - May 21, 2009

As an independent guide to buying property, we do not recommend or otherwise any specific agents, developers, projects or properties. However, we can advise you on the processes to go through in order to try to make sure you are dealing with legitimate companies and have some security in the event of anything going wrong.

With developing countries like Albania, it can be difficult to find companies which offer themselves to the same kind of scrutiny as you might find in the more established markets for overseas property. However, you should first check if they are a member of any of the industry associations for overseas property which do exist - such as AIPP, FOPDAC or the international arm of the NAEA. These associations often have a published code of conduct for their members, and in some cases a clear disciplinary framework for members who break the rules. It should be noted however, that at the time of writing, none of the industry associations carries out due diligence checks on their members.

Regardless of whether or not the agent or developer you are using is a member of one of these associations, you should ALWAYS have your own independent, expert legal representative to make all of the background checks that are necessary. They should be fluent in both English and the language of the country where you are buying, and will be able to looking to all of the issues such as land and title deed ownership, planning permissions and even the company from which you are buying. Never sign anything which you do not fully understand or for which you do not have a copy in English. Finally on lawyers, never use the legal representation offered by the agent or developer - they are likely to be tied to them in some way and you need to have someone who is representing your interests and nothing else.

Aside from this, there are other checks you can make yourself for a little added peace of mind. Ask for testimonials from past happy clients, ask to see some projects the company has worked on in the past, or for a copy of the planning permission for the project. Ask about bank guarantees for new-build projects. If the company seems to be evasive on any of these issues, it should start ringing warning bells with you.

If at any point you are unsure about the reputation of a company, walk away. There will always be another opportunity or another property, so do not feel pressured into buying if you are uncomfortable.

2. Jeff - May 22, 2009

Hi Paul,

Thanks for getting back to me. Can you recommend any real estate websites that will allow me to get up to date information as to whether or not Albania is as good of an investment opportunity as is being touted on the web. Also how can I check is Albania has good re-sell potential should I want to sell my property later?

3. Paul Collins - May 26, 2009

Hi Jeff,

Measuring the value of an investment opportunity is something that is very difficult to do, as it depends on so many different factors and your needs and requirements as an investor. For example, a market that may be perfect for one investor who has a reasonably relaxed attitude to risk and is looking to get their money out again within six months could be the wrong place for someone who is a novice investor who is more cautious with their cash.

Our Buying Guide to Albania has just been updated and you can access it for free from this page. One thing that I can say is that all overseas property markets have felt the effects of the global economic recession in the past few months, so it worth bearing this in mind when considering future investments. Albania would still be classed as an 'emerging' market as the real estate system has yet to undergo the steep price increases and reform and maturation of the system as has been seen in other, similar countries. However, that is no guarantee that Albania will have similar price rises and an increase in property development.

Finally, one of the features of the emerging markets is that the resale market has yet to be tested to any significant extent, so it is almost impossible to find reliable data on this. One thing you can do is to search websites and estate agents in Albania regularly for resale property - that way you may be able to get a feel for how quickly properties sell and the inventory changes.

4. Jeff - May 29, 2009

Hi Paul,

Thanks for your reply again. The information you have provided has been most helpful. Keep me posted if you think or hear of anything else that might be useful in my Albania property search.