WITH A stagnant domestic property market and great deals on offer abroad, Lydgate resident PAUL COLLINS, of BuyAssociation, looks at what the overseas property market has to offer
OVERSEAS PROPERTY has suffered significantly from the global economic downturn which means now could be the perfect time to pick up a bargain in a dream location.
Across the Spanish Costas, for example, there are numerous high-quality, completed and fully legal developments which were repossessed from developers who went bust.
Now banks are selling the properties for substantial discounts over the original prices with many offering mortgages.
The situation in the USA is somewhat different. It was the first overseas property market to crash and has arguably fallen further than any other.
This means incredible bargains – depressed regions like Detroit offers investment-only deals for £20,000 cash with tenants ready to move in.
More traditional destinations like Florida have properties for as little as 50 per cent of the original sale price when new. And with theme parks still going strong, there should always be rental demand for a well-located property.
Other markets which suffered huge price falls are also starting to bounce back –property in Dubai is once again starting to sell in larger volumes.
At the same time some countries remained virtually untouched by the global recession. Brazil has continued to grow in popularity and price throughout the past few years.
Five top tips for buying property overseas:
1. Research: Examine every aspect of buying overseas and what it will mean for you rather than just watching a few TV programmes. Resources are plentiful, so take advantage.
2. Legal: ALWAYS use an independent, expert lawyer for your overseas property purchase. NEVER use the lawyer recommended by an agent or developer.
3. Currency: Use a specialist currency exchange company when transferring the funds for your property abroad – advantageous rates will save you thousands over a High Street bank.
4. Cash: If you are asked to pay any of the purchase price in cash, refuse. This is a tactic sometimes used by private sellers to avoid Capital Gains Tax by under-declaring the value of the property.
5. Rentals: If you are intending to rent the property out when you are not using it, decide how you will market, manage and administer it. Plan your projected rental income on a worst-case scenario and then anything you earn above is a bonus.
Check out: www.buyassociation.co.uk
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