Buying Property Abroad.
Tips For Buying In 2006? By: Robert Horwood

Buying a property abroad in 2006

When buying a property abroad many people forget about the most obvious and relevant point of all which is quite simply what do you want the property to do for you? This simple factor could determine the country and the area you buy in to. Are you looking for a short term property investment? Are you looking for a long term regular income? Or like most people are you simply interested in a holiday home for you and the family?

There are two types of property abroad you can buy. Off-plan and resale property. Off-plan means buying a property abroad before it is built. A resale property is simply buying a completed property abroad from a third party. Both options have their advantages and disadvantages. Be careful when buying an off-plan property as you can be sure that the size of the property will finish off smaller than you imagined it to be. It can also be a long time before the property abroad and the over all development is completed. You can also incur problems if the building is not constructed according to the original plans but overall buying an off-plan property abroad can reap some fantastic profits.

When buying a property in Spain allow approximately 10-12% on top of the asking price for additional costs such as lawyer’s fees, taxes and V.A.T. The cost doesn’t always equate to 10% but allow that amount anyway just to be on the safe side. Other locations abroad change accordingly. For example in Dubai there are no taxes which makes Dubai a very attractive investment property opportunity. If you assume 10-12% as being the maximum abroad then you should receive some change every time.

If you are buying a property abroad to emigrate then you must check out the infrastructure i.e. Hospitals, education etc etc.There are some fantastic bargains in the merging markets such as Bulgaria, Romania, Estonia and Cape Verde but it's no good living there if you have to travel out of the country every time you have a health problem or if it's an absolute nightmare to travel around. This is why Spain always ends up being number one in my opinion because the infrastructure is leaps and bounds ahead of many of the eastern block countries. You may pay more to begin with but you receive far more for your money long term.

If you want to buy a property abroad for investment and rental purposes then think about what appeals to the majority.

Is it close to an airport? Is it close to the beach or local amenities? Is there sufficient transport nearby? Are you able to rent the property all year round?

If you are looking for a rental income from your property abroad then spend time finding a good agent. www.d2rworldwide.com can give you advice on this subject. If you can afford to do so then buy a cheap good looking vehicle which could add extra value to the property both on rental and resale. Always try to buy a property that appears to be spacious. The inside colour makes a big difference which is something you can change yourself. Never buy a property that doesn't have a view of some form or another. Either a view of the mountains or the sea. The view can compensate for the lack of space inside.

Always check the surrounding areas for potential building projects as the last thing you want to do is come back 12 months later and find the field next door is a construction site. The chances are your tastes are not that much different to other peoples so although you have to be vigilant at all times don’t forget the basic rule. If you like it then you can be sure that others will also. So buy a property that you like in a country that you like and the rest should fall into place quite nicely.

About The Author
Robert Horwood is Director of http://www.d2rworldwide.com and www.dreams2realty.co.uk both property websites specialise in Off-Plan and resale investment property in Spain .This article comes with reprint rights. Feel free to reprint and distribute as you like. All that we ask is that you do not make any changes, that this resource text is included, and that the links above are intact. rob@d2rworldwide.com.

Thinking of Buying a Property Abroad – What you need to Consider?
by: Allison Thompson

Many people now days are buying a second home abroad, say Dubai as either a holiday location or because they have decided to relocate to that area due to work commitments or because they are retiring and would like to enjoy a bit more sun.

When people are thinking of buying a property abroad there are a number of issues you may need to consider before making that all important purchase and I list below some of them.

1. How much capital do you have available to invest in the new property and if you need to obtain additional capital for the purchase will it be through your current lender or will you be requesting it from another source, say a lender in the country where you are looking to purchase your property. If you wish to lend from a financial institute in the country of your choice you will need to investigate what percentage of borrowing you allow, in some countries you will only provide them with an 80% loan, which means you will need to provide the other 20% capital for your purchase.

2. The type of property you are wishing to purchase? Will it be a town house, an apartment or villa? Also what sort of location are you looking for? Do you want to be in a gated community or a complex, the country, town or village? Also what sort of facilities do you want close to your property, such as shops, restaurants, bars, and sports facilities?

3. Make sure that you contact a reputable real estate agent, one who will be able to provide them with all the necessary information on the property that you are looking to purchase, including all building regulations and planning permissions that should be held. Also this agent should be able to put them in contact with a solicitor/legal advisor who will be able to deal with the drawing up and completion of the contracts of sale.

4. As stated above, where possible request that the real estate agent provides you with the necessary paperwork relating to the buildings legality. In some countries an issue has arisen where people have brought properties and then find that permission for the property to be built has not been given and the consequences in some respects have ended up with these people not only losing their homes but also all the money they have invested in the property.

5. Another thing I would suggest you carry out is research on any local customs or laws for the region you are looking to move to, as in some countries you may find their laws and regulations are not so relaxed as where you reside now, say for instance you decide to purchase a property in Dubai you will find that you are only allowed to drink alcohol within the confines of your own home, in hotels or at a licensed premises any where else and you could find yourself at the mercy of the local police force.

Finally another reason for buying a second property abroad that could influence your decision is the currency exchange rates, for example you may find that the money you have to buy a property at home, say a two bedroom apartment will in fact allow you to purchase a three bedroom apartment in the country where you are looking to purchase.

I hope the above has given you food for thought and helps you when making a decision about purchasing a property abroad.

Author: Allison Thompson, with 15 years experience in the property sector.

About The Author
Allison Thompson, now lives in Spain and has 15 years experience in the property field. allison@inlandpropertyservices.com.