|
Buying abroad should be an
exciting project. Whether buying
for a pied-a-terre, holiday
home, pension or investment the
world literally is your oyster as the overseas
property market expands rapidly.
In the 20 years I have been in the
overseas property market I have never
known such a clamour from the UK to
purchase. These are exciting times but
there are rules to follow which prevent
any problems in the future.
Whilst recent reports of land grab in
Spain, lack of ownership in Northern
Cyprus and unregulated emerging
countries can be daunting, there are
ways of protecting yourself and ensuring
that you invest safely.
Pointers to consider are:
Choose a reputable agent or
developer. A member of a Federation
such as FOPDAC gives you a certain
amount of protection against
disreputable companies as The
Federation check their credentials before
admitting them to the Federation. Or
you can do your own homework on the
company with whom you wish to deal.
This is the cornerstone of your entire
purchasing project.
Look carefully at the property you
select. If you are looking for revenue
from your investment then it needs to be
easily accessible for airports, beaches,
ski slopes etc.You need to research your
market area. Again, a good agent will
have this information to hand.
If you have a property to rent suitable
for a family, then closeness to beaches,
pools and entertainment should be top
of your agenda. If you buy a luxury five-bedroom
villa, then peace and quiet may
be the order of the day, so check that no
motorways or housing developments are
being built in the vicinity.
Look to having your finances in
position as early as possible.You need to
know exactly what you can afford and
what your repayments will be.You need to
be able to cope with void periods so if it is
a skiing resort remember there is only
snow so many months of the year! Take
into account extra expenses that may be
incurred in terms of local taxes etc.
Choose your country before you start.
It is a big world and it is easy to get
distracted. Going to a property
exhibition can be enormously helpful if
you can sit and talk to an expert, but
know before you go, which country is
right for you. Get together some
questions so that they can help you
immediately.This is also a good way of
getting a feel of exactly how much they
know about a given country. Some
agents who cover lots of countries
worldwide are less of an expert in a
particular country. Sometimes it may be
prudent to choose an agent who
specialises.
Do not be put off with scare stories.
You can read about galumphing with the
UK property market.You can read about
buildings which fail surveys, you can
worry about unapproved extensions to
properties and agents not working for
clients, as recently shown on TV, but the
same criteria applies. If you go with a
well-established reputable agent or
developer, you should have no problems.
Do not let a few isolated incidents deter
you from an overseas market place
where some properties are increasing by
over 20 per cent per annum.
Finally apply the same due diligence
as if you were purchasing in the UK and
you will not go far wrong; remember
location, location, location for
maximising your rental opportunity and
for re-sale.
For advice and assistance in the first
instance then do not hesitate to look at
the FOPDAC web site www.fopdac.co.uk
or call 0870 3501223.
Pauline Gallagher was appointed CEO
of The Federation of Overseas Property
Developers Agents and Consultant
(FOPDAC) in January 2006.This is the
first time in its 30-year history that the
Federation has appointed a CEO, which
signifies the importance of the role that
FOPDAC plays within an escalating
overseas property market. Ms Gallagher
is also director of Cyprus-specialist
agents Halcyon Properties.
The Federation of Overseas Property
Developers, Agents and Consultants
(FOPDAC) was established in 1973 to
unite those agents, developers and
specialist consultants active in the
international property markets whose
common aim is to conduct their
activities in a manner which seeks to
protect the interests of those who have
decided to purchase, or sell, a property
overseas. Membership of the Federation
is restricted to companies or individuals
whose probity is beyond reasonable
question.The individual principals must
have the experience and professional
expertise to meet the strict criteria set in
the Federation’s Code of Ethics. The
Committee of the Federation and its
members provide a valuable reservoir of
many cumulative years of experience in
international property. For more
information please visit:
www.fopdac.com
|
