Welcome to BuyAssociation.co.uk

Guide to Buying Property Abroad – Getting Started

Introduction

The overseas property market has varied dramatically in the last couple of years. The traditional buying territories of Spain, France, Portugal, Italy, Florida and Cyprus are now having to compete with the low prices of Eastern Europe, the investment potential of Dubai, the quality of life of Canada and the low cost of living in Turkey.

People are buying property today in countries that they may not even have heard of five years ago (Cape Verde I hear you cry!), and as a result the overseas property market is perhaps more unpredictable today than ever before.

With everyone so busy trying to spot ‘the next big thing’, it can be extremely difficult to keep track of different laws and taxes – not to mention cultures. The trick to a successful purchase is simple – research, research, research. The following pages aim to give you a general overview of things that you should be looking for when buying abroad but, unfortunately, this is only the first step in a long, long process.

Read as much as you can – on the internet, in magazines and in books – visit exhibitions; take independent legal and financial advice and, most importantly, visit the country in which you are considering purchasing as often as possible – both in and out of season. There is absolutely no replacement for first hand knowledge, so quiz as many people as possible and learn from their mistakes. Finally, make sure that you enjoy the process – you are far less likely to make a mistake if you view it as a pleasure rather than a chore…

Popular Buying Territories

Spain is still the most popular destination for British buyers. It has a great deal going for it, hence the reason that the Costa’s managed to avoid the much publicised crash that was predicted for 2005. Fabulous weather, good facilities and amenities, a wide range of low-cost flights, a reputable healthcare service, a low lost of living and well-established infrastructure all come together to form a timeless package. There is a wide range of property available and, while the average price for a two-bedroom apartment is £175,000, you can expect to pay anything from £50,000 to £1 million depending on what area you look in – with rural properties offering much better value for money than those on the coast.

France is somewhat of a chameleon when it comes to British buyers, as it doesn’t get much publicity, but has maintained a steady position as our second choice. The majority of Brits who buy here tend to be Francophiles, people who admire the culture and want a piece of the French lifestyle for themselves. As a result traditional homes tend to be the most sought after, with buyers not afraid to do a bit of work. Ryanair has also opened up a lot of the country which was previously inaccessible, but be wary of choosing a home simply because of one flight route. Low-cost carriers tend to fly to regional airports, where they can often be the only airline in operation. If the airline was to cancel that route, or indeed to go under entirely, you still need to be able to access your property. Therefore, make sure that a low-cost flight route is an added benefit, rather than your sole mode of travel.

Portugal, and in particular the Algarve, has transformed itself into a Mecca for golfers. The result of this is a plethora of well-maintained developments and manicured resorts – not to mention high property prices. However, with unbeatable weather and no time difference, it seems that this is a price that thousands are willing to pay. A three-bedroom villa averages around £272,000, but expect to pay more the further south you travel. Northern Portugal is currently reinventing itself, and the golf developments there could soon be giving its southern counterpart a run for its money. On the downside, the Portuguese healthcare system has received some bad press – but private treatment is available.

Florida has long been popular with British tourists, and this has transformed well into the holiday home market. The rental opportunities are plenty, with Disney, Epcot, Sea World and Universal Studios all guaranteeing millions of visitors every year. However, if you are planning on renting out your Floridian property make sure it’s in the right zone – rental is restricted in many zones which could put an abrupt end to your investment plans. It is also important to be aware of the visa restrictions – Brits are only allowed into Florida for up to 90 days at a time, despite whether or not they own local real estate.

Dubai has been one of the decade’s property success stories, with the emirate building at an astonishing rate. You name it, and they are planning to build it. From island developments moulded into the shape of the world, to underwater hotels and revolving apartment blocks, Dubai is clearly ahead of its game. However, such a new market doesn’t come without its teething trouble, and in this instance it is the question of freehold property. In March freehold title was finally granted to those who have bought from the emirate’s three main developers (Nakheel, Emaar and Dubai Properties), but the finer details are yet to be released – and there is no sign of when this will be.

What sort of buyer are you?

There are generally four types of overseas property buyer:

1) Investors

2) Holiday-homers

3) Émigrés

4) Retirees

Increasingly, people are beginning to fill more than one of these categories. For example, somebody may purchase a holiday home with a view to retiring there permanently in the future; somebody else may purchase a property primarily as an investment, but plan to use it for holidays too; or a buyer may be emigrating lock, stock and barrel simply because they have retired.

Before you decided on a type of property, and indeed a destination, it is important to decide which of these, or combination of these, categories explains you the best. If you’re an investor then capital growth, rental returns and tax incentives are what you should be concentrating on. Holiday-homers should be considering flight times, facilities and amenities, weather and local culture. Meanwhile, retirees priorities will be established infrastructure, healthcare, visa issues and cost of living. Émigrés should take into account all of these factors.

Once you have established which type of buyer you are, you will find the searching process far easier – and much more successful – as you will only be targeting property types and destinations that suit your specific criteria. It’s important to stick to your guns here, as it’s unlikely that your priorities are going to change once you get on the plane – don’t allow yourself to be swayed away from what you initially set out to achieve.

Estate agents – what to look for

It’s very important to remember that while estate agents are ultimately assisting you in your property search, they are paid by the seller – be this a large developer or an individual vendor. It is therefore necessary to register with as many agents as possible, because no matter how good they are, they can only sell you what they currently have on their books.

A good estate agent will insist that you visit the property at least twice – and at different times of day. Just because you are buying abroad, don’t think that every property is going to be peaceful – or even get the sun. If one of these factors is important to you then tell your agent – and don’t be fobbed off with anything else.

It’s important that your estate agent speaks the local language – especially if you don’t. If they only speak English then the likelihood is that they are only dealing with British, and Irish, sellers – and this could considerably limit your choice of available properties.

Quiz your agent about the local market, and find out how long they have been selling there. If they have been established in the area for a while then this is a good sign, they will have better contacts, have more market knowledge and, most importantly, are more likely to stick around should the market turn sour.

If you are still in doubt about an agent’s credibility, then opt for a firm that is registered with an internationally recognised governing body, such as FOPDAC (Federation of Overseas Property Developers, Agents and Consultants) or AIPP (The Association of International Property Professionals).

More pages

Page 1: Introduction
Page 2: Developers – what to look for
Page 3: Mortgages
Page 4: And finally...

Discounted Airport Parking - available across the UK

Speak to the experts to find your perfect home in El Gouna. Luxury apartments and villas on Egypt’s Red Sea Coast. Life as it should be. www.ancientsandsresort.com

www.holidaylettings.co.uk online advertising for home owners abroad

The best deals on car hire in the UK, USA, Europe and beyond Alamo has the car you need at the price you want!

Caribbean eco resort with 80% ROI in 2 years Unique investment opportunity in Grenada eco resort development. Invest from £25,000

Marbella apartments with 110% finance 50 per cent discount from developer prices, 300m from the beach

Predicted profits of 100%+ on your investment in Canada Invest in pre-development land for only £20,000

Holiday home insurance from intasure - Click Here UK insurance for your property overseas