THE PROPERTY OUTLOOK
Whether you are buying property as a second home, an investment opportunity, or full time accommodation, you need to dig into the details and understand the long term projections for the real estate and the location. Think about how the property is designed and built, and what infrastructure it has available.
If you’re looking for an investment opportunity it might be that the property is somewhat light on infrastructure. It might be far from transport links and local amenities. But then, that might not always be the case. Check the local authority area for a development plan to see if you can snap up a bargain.
SUPPLY AND DEMAND
When you buy property overseas it’s very important to do your homework, especially with regards to the property market in the local area. With some many regions of the world to choose from it makes little sense to buy property in an area where demand is low and prices are high.
If you do your research and you remain open minded about the property’s location there’s no reason why you can’t buy Bahamas Homes for Sale and sell them at a profit. Or you could buy an off the plan property that will be in high demand a year or two down the line. Monitoring the housing market in your target area is the best measure you have.
ACQUISITION COSTS
When buying an overseas property it can be easy to fall into the trap of thinking of the asking price in the final price. It’s not. There are many other fees and charges to factors in before you can successfully and legally acquire the property. This is even more relevant when you’re buying overseas property.
Consider some of the extra costs you will need to face. There are legal fees, notary fees, registration fees, title insurance, and transfer taxes. You will also have lawyer fees and broker fees. Don’t forget to research all the fees involved in your property acquisition so there are no surprises.
CARRYING COSTS
The costs of acquiring a property may not be the only costs that surprise you when buying a property overseas. There can be significant carrying costs as well. Depending on where you buy your property there is likely to be maintenance costs, caretaker costs, and a range of taxes including income tax and property tax. This doesn’t have to put you off but you need to buy with your eyes open.
Begin by asking your lawyer what taxes and fees you are likely to incur when buying this property. Follow that up by investigating the local authority in the region. You should be able to contact a local housing authority for a breakdown of property taxes.
ECONOMIC OUTLOOK
If you’re buying your overseas property for the purposes of investment the economic outlook of the region is an important aspect to consider. You need to know the viability of the property you’re buying and if you’re going to get a reasonable return on your investment. The economic outlook will include the property prices as well as popularity of the area.
You might also want to keep an eye on global market conditions. A downturn in house prices could mean a significant loss if you are trying to sell a property. This would be compounded if the area was not popular and you failed to rent it out. On the other hand you might be lucky and find an excellent long term tenant.
OPPORTUNITIES FOR DIVERSIFICATION
Buying a property successfully overseas is all about planning and preparation. The first thing you need to do is to understand the purpose of the property along with your intentions and goals. Is the property for living in, or do you intend to rent it out full time or part time. These goals will influence other important decisions along the way.
What kind of property should you be shopping for? A flat, a bungalow, a beach house, or a suburban home. Your initial goal setting will help to identify the type of home to shop for and what alternative investment options might be available.
REQUIREMENTS FOR SPACE
Once again your initial goal setting process will influence your decisions about what size of property to buy. If it’s for you to live in or spend some time in once or twice a year you might opt for a larger pad. But if you’re renting your need to do a little bit more local research.
What types of homes are popular for renting in that area? Do people like large family homes or are smaller one bedrooms more popular? Think of your own city, there are massive variations in property type and popularity even there, so get to know your investment location.
LOCATION LOCATION LOCATION
One of the most exciting things about buying overseas property is the chance to identify an exciting location to live or invest in. This could be in the city with a cityscape or overlooking the ocean on the coast. It could be in the countryside where the locals all know each other, or somewhere completely isolated. The choice is yours.
However, you need to make the right choice according to your needs and investment goals. Investing in overseas property is a project that should be tightly controlled and monitored for successful results. The closer you can stick to the plan the better your final outcomes will be.
CONSIDER YOUR BUDGET
Often overseas property costs far more than the asking price and you need to be aware of this from the start. There’s no point in setting off on your property investment journey without the capital, it will only end in disappointment. In reality, the more research you do at the beginning, the more successful your journey will be.
Think of your budget – what you’re willing to spend on a property – then estimate the fees and additions. These might include closing costs, attorney reviews, other due diligence costs, and title insurance. When you have all your costs laid out think again about the type of property you can afford.