When does a cheeky offer become a silly one, or – even worse – an insulting one? That’s the question that needs to be the first you ask yourself if you decide that you are going to offer less than the asking price. The last thing you need to do is to rush in with guns blazing and offend anyone. Neither, however, do you want to pay any more than you have to…
Each country has a different take on the thorny issue of exactly how much lower you should offer than the asking price. Here’s where a really good local estate agent could advise you. An agent with extensive knowledge of both the rules and regulations of the property laws plus of the local vendors is worth their weight in gold. They will know local price trends and they will also have a good insight as to how the property game is played in their neck of the woods.
Both the vendor and estate agents need to know that you are a serious buyer and not just wasting their time so it is important to get organised before you make an offer. If you have all your ducks in a row in terms of what is needed to buy - things like a bank account opened, a mortgage agreed to in principle, a good Experian credit reference to hand - they will be far more likely to take an offer from you seriously. Even if it is lower than another offer they may receive, the fact that the sale will probably go through quickly will weigh in your favour.
Another thing to bear in mind is that, although the vendor may not be prepared to accept a lower offer, they may well be prepared to consider other incentives to encourage you to buy. Things such as paying your closing costs, landscaping your garden, providing white goods in the kitchen…if you don’t ask, you don’t get!
Remember, if you are buying from a Brit who will be moving the proceeds of the sale back to the UK, the exchange rate from euros into sterling may be more favourable than when they bought so they can perhaps afford to drop their price and still make a profit…
The recession meant that a lot of buyers got their fingers burnt, buying at the top of the market and seeing the value of their properties plummet.
What does this mean to you?
It means that as a buyer you may be a fairly rare species and that fact allows you to haggle. It also means that you need to consider your purchase carefully. You don’t want to be one of those buyers with burnt fingers!
So…to summarise:
1. Leave your British reserve at the door! Remember, after the sale, you may never see either the estate agent or the vendor again. You are not trying to make a new best friend…
2. Do your research before you set foot abroad. Try and get a feel for possible prices, the state of the market etc.
3. Make sure that you have all those irritating bits of paperwork tied up BEFORE you start looking if at all possible and that you are ready to sign a deal immediately (gives massive bargain power to be able to move fast)
4. Get your finances set up so that you know exactly what you want to spend. This should include all purchase costs
5. Then, by all means put in an offer, but make it a sensible one
6. Best case scenario would be that you do this acting under advice from a local estate agent who has a handle on the local market
7. If your offer is rejected, try to get other incentives to sweeten the sale
Good luck!
Kim
The Overseas Guides Company
http://www.Overseasbuyingguide.com
Thursday 24 March 2011
Thursday 17 March 2011
Researching and Choosing a Good Developer
When buying a property abroad it’s possible to buy from a developer that provides bad service, is unauthorised to build property and leaves town with all your money. It’s also possible to find a good developer that builds a property on time, to specification and within the budget requested. And then there are all the other developers that fall somewhere in between!
There are three stages to choosing a good developer. However, many buyers are either unaware of, or simply skip, the first two stages. Failure to spend time on stages 1 and 2 dramatically increases the likelihood of serious problems later on in the buying process.
Stage 1: Research the property market and get an understanding of who’s who regarding developers.
Stage 2: Pick a good developer and take actions that will increase your likelihood for a smooth purchase process.
Stage 3: Sign a contract of sale with your chosen developer.
Starting with stage 1, it is very important to get a good understanding of the property market and the various developers that contribute to that market. There are some very shoddy developers out there that should be avoided at all costs; however, if you don’t know the market, or the players in that market, it’s difficult to determine exactly who is good and who’s not so good.
To ensure that you find a good developer there are several things you should consider before determining the developer for you. Below I’ve listed 5 actions you can take. However, I must stress at this point that the ultimate action to be taken is to do your homework, get information from a variety of resources and never, ever rush into anything!
1. If possible, move into rented accommodation BEFORE you plan to buy. Living with and talking to people in shops, restaurants or during a walk on the beach will give you a very good idea about reputable developers as opposed to the not so good. In smaller towns everybody knows everybody else, and conversations often centre on the wonderful weather, a new restaurant that comes highly recommended…or the latest property scandal. Simply spending time in the area that you’re interested in can provide you with all sorts of important, indeed essential, information.
2. Search the Internet for expats in your town or city of choice and you’ll find various forums and groups that discuss a multitude of issues. Some forums highlight poor practices and name and shame shoddy developers. Others provide testimonials of purchases that went swimmingly well! Reading the forums will help you to determine the developers to instantly cross from your list and those that can be considered ‘maybe’s’.
3. Consider using an estate agent as they have a certain amount of leverage over developers. The last thing an agent wants is hassle, thus many tend to work with developers that have a good reputation and provide a good product. If the developer decides to cause problems, the agent often has the upper hand by threatening to withdraw future business unless the developer complies with the needs and wants of the agent and buyer.
4. View many different developers in many different areas to get a comprehensive idea as to property styles, prices and value for money. Some developers will charge €10,000 to €30,000 more for the same spec property than other developers – it pays to shop around and get to know the developers that inflate their prices.
5. Look for projects from developers that adhere to any and all building regulations – you need to know at the outset what those are and that they are conforming to them.
In addition to Stage 1, you’ll want to pick a developer and take actions that will increase your likelihood for a smooth purchase process. You may want to consider some of the following actions:
- Visit a couple of the developers’ previous projects, knock on doors and talk to the previous buyers. Ask them what problems they had, what went well, what could have been improved. Also ask them if they have any advice for you.
- Force the developer to comply with your requirements by retaining a solicitor independent of the developer who will ensure that your contract that has clauses inserted to protect you. Also make sure that the developer’s financial staged payments (stipulated in the contract of sale) require you to pay according to completion of milestones not simply by dates in the calendar. Some people have had to pay almost the full cost without a brick being laid if they omitted this step!
- Buy a bond or take out insurance. Yes, it costs money, but it does mean that you are covered if the developer goes bust or there are any major issues with the build.
- Interview the prospective developer: ask them for testimonials and enquire about the amount of successful projects they’ve completed (to time, to budget and within specification). You can also ask about their customer service and after-sales follow up. What is their complaints process? Do they assist with setting up bank accounts, getting mortgages, getting the water and electric bills set up?
The key points: eliminate the bad developers and find out who’s who in the world of developers (Stage 1), seek out a developer that has a past record of happy buyers and research various options that increase the likelihood of success (Stage 2) and then finally it’s time to sign a contract of sale that protects you, with a developer that has a good reputation (Stage 3).
All this said, the majority of buyers fly over for a holiday or a 3-day inspection trip and fail completely to do any research at all. They get caught up in the wonderful atmosphere, become emotional about living the dream and make uninformed decisions about something that could potentially affect the rest of their lives. Don’t make this mistake! Take responsibility for the entire buying journey, do your homework, don’t rush into anything and set yourself up for success.
Kim
The Overseas Guides Company
http://www.Overseasbuyingguide.com
There are three stages to choosing a good developer. However, many buyers are either unaware of, or simply skip, the first two stages. Failure to spend time on stages 1 and 2 dramatically increases the likelihood of serious problems later on in the buying process.
Stage 1: Research the property market and get an understanding of who’s who regarding developers.
Stage 2: Pick a good developer and take actions that will increase your likelihood for a smooth purchase process.
Stage 3: Sign a contract of sale with your chosen developer.
Starting with stage 1, it is very important to get a good understanding of the property market and the various developers that contribute to that market. There are some very shoddy developers out there that should be avoided at all costs; however, if you don’t know the market, or the players in that market, it’s difficult to determine exactly who is good and who’s not so good.
To ensure that you find a good developer there are several things you should consider before determining the developer for you. Below I’ve listed 5 actions you can take. However, I must stress at this point that the ultimate action to be taken is to do your homework, get information from a variety of resources and never, ever rush into anything!
1. If possible, move into rented accommodation BEFORE you plan to buy. Living with and talking to people in shops, restaurants or during a walk on the beach will give you a very good idea about reputable developers as opposed to the not so good. In smaller towns everybody knows everybody else, and conversations often centre on the wonderful weather, a new restaurant that comes highly recommended…or the latest property scandal. Simply spending time in the area that you’re interested in can provide you with all sorts of important, indeed essential, information.
2. Search the Internet for expats in your town or city of choice and you’ll find various forums and groups that discuss a multitude of issues. Some forums highlight poor practices and name and shame shoddy developers. Others provide testimonials of purchases that went swimmingly well! Reading the forums will help you to determine the developers to instantly cross from your list and those that can be considered ‘maybe’s’.
3. Consider using an estate agent as they have a certain amount of leverage over developers. The last thing an agent wants is hassle, thus many tend to work with developers that have a good reputation and provide a good product. If the developer decides to cause problems, the agent often has the upper hand by threatening to withdraw future business unless the developer complies with the needs and wants of the agent and buyer.
4. View many different developers in many different areas to get a comprehensive idea as to property styles, prices and value for money. Some developers will charge €10,000 to €30,000 more for the same spec property than other developers – it pays to shop around and get to know the developers that inflate their prices.
5. Look for projects from developers that adhere to any and all building regulations – you need to know at the outset what those are and that they are conforming to them.
In addition to Stage 1, you’ll want to pick a developer and take actions that will increase your likelihood for a smooth purchase process. You may want to consider some of the following actions:
- Visit a couple of the developers’ previous projects, knock on doors and talk to the previous buyers. Ask them what problems they had, what went well, what could have been improved. Also ask them if they have any advice for you.
- Force the developer to comply with your requirements by retaining a solicitor independent of the developer who will ensure that your contract that has clauses inserted to protect you. Also make sure that the developer’s financial staged payments (stipulated in the contract of sale) require you to pay according to completion of milestones not simply by dates in the calendar. Some people have had to pay almost the full cost without a brick being laid if they omitted this step!
- Buy a bond or take out insurance. Yes, it costs money, but it does mean that you are covered if the developer goes bust or there are any major issues with the build.
- Interview the prospective developer: ask them for testimonials and enquire about the amount of successful projects they’ve completed (to time, to budget and within specification). You can also ask about their customer service and after-sales follow up. What is their complaints process? Do they assist with setting up bank accounts, getting mortgages, getting the water and electric bills set up?
The key points: eliminate the bad developers and find out who’s who in the world of developers (Stage 1), seek out a developer that has a past record of happy buyers and research various options that increase the likelihood of success (Stage 2) and then finally it’s time to sign a contract of sale that protects you, with a developer that has a good reputation (Stage 3).
All this said, the majority of buyers fly over for a holiday or a 3-day inspection trip and fail completely to do any research at all. They get caught up in the wonderful atmosphere, become emotional about living the dream and make uninformed decisions about something that could potentially affect the rest of their lives. Don’t make this mistake! Take responsibility for the entire buying journey, do your homework, don’t rush into anything and set yourself up for success.
Kim
The Overseas Guides Company
http://www.Overseasbuyingguide.com
Thursday 10 March 2011
A currency strategy – why on earth would someone need this?
Simple really. When you buy a UK property you know exactly how much you will need to pay for the property and as such you can plan accordingly.
With a foreign property you will have to pay in another currency; for example euros or US dollars, which means changing sterling into that currency at a specific exchange rate. However, that exchange rate moves every minute of the day and sometimes the movement can be quite dramatic. You will have used the rate on the day that you first thought of buying…If the exchange rate moves against you, you can suddenly find that you need a lot more sterling to buy your foreign currency and pay for your property than you had originally envisaged.
Hence the need for a currency strategy which will allow you to target exchange rates, focus on timing and secure a favourable exchange rate when available. The currency strategy will take a lot of the risk of increased costs out of the equation and at the same time reduce stress which is always welcome!
The best way to develop a currency strategy is to talk to a currency expert and discuss all the different permutations that are available to you. You will then be able to make an informed decision about your currency transaction thus minimising your costs…and your stress level.
Get your free currency report from Smart Currency Exchange at: http://www.Smartcurrencyexchange.com/freereport1.htm
Kim
The Overseas Guides Company
http://www.Overseasbuyingguide.com
With a foreign property you will have to pay in another currency; for example euros or US dollars, which means changing sterling into that currency at a specific exchange rate. However, that exchange rate moves every minute of the day and sometimes the movement can be quite dramatic. You will have used the rate on the day that you first thought of buying…If the exchange rate moves against you, you can suddenly find that you need a lot more sterling to buy your foreign currency and pay for your property than you had originally envisaged.
Hence the need for a currency strategy which will allow you to target exchange rates, focus on timing and secure a favourable exchange rate when available. The currency strategy will take a lot of the risk of increased costs out of the equation and at the same time reduce stress which is always welcome!
The best way to develop a currency strategy is to talk to a currency expert and discuss all the different permutations that are available to you. You will then be able to make an informed decision about your currency transaction thus minimising your costs…and your stress level.
Get your free currency report from Smart Currency Exchange at: http://www.Smartcurrencyexchange.com/freereport1.htm
Kim
The Overseas Guides Company
http://www.Overseasbuyingguide.com
Thursday 3 March 2011
What is the cost of living looking like?
It’s no secret that the cost of living varies dramatically between countries. For instance, every country that has joined the EU has seen it’s cost of living rise quite dramatically…but then they have also seen their standard of living rise too so I suppose it’s a case of swings and roundabouts.
When you decided to emigrate I am sure that you looked at costs, including those to buy property and to move, but did you factor in the day to day cost of living? This can make quite a difference in your life style, to where you live and how you live. It would take more space than I have here to discuss each and every country in detail, but I have a few pointers that you may like to think about.
Food
In many countries, although food can be costly in the main cities it is usually much cheaper in more rural areas. You may also find that there you will be able to buy fresh produce locally, which will dramatically reduce the bills. My colleague Alexis, who has a home in France, visits the local weekly market to buy fruit and vegetables and says that the savings are quite dramatic. However it bears remembering that in, say, Greece, the islands - although many are rural - are sometimes more expensive as goods have to be shipped in. These are the things that you need to find out in advance and factor into your plans before you buy.
Utilities
The costs will vary, depending on the size of your home, how many people live there and where you are located. There may, however, be more than one provider and perhaps a comparison exercise would throw up a cheaper provider. A word to the wise here: my son has a far cheaper telephone line than mine, but there is always a problem with it…what’s the use of that? Best case scenario is that you chat to a local.
Schooling
You may find that free State schooling is available. But how good is it? And do you need to live in a more expensive or a rural area to access a better school? In South Africa for instance there are only a handful of State run schools that are rated as acceptable…and private schools really cost. This is the sort of thing that a good estate agent can give you the low-down on.
Health
You need to do your research here. Is there a State health care system that residents can use? If not you will need to pay for healthcare and this can prove very expensive. It is essential to check this out before committing yourself as this can be a deal breaker.
Transport
Costs can vary tremendously. You need to check this out carefully. In Johannesburg, South Africa, for instance - which is the country I know best – there is virtually no public transport system at all. I had a bad car accident and no longer wished to drive, and it is not safe to walk…problem! Also, if one partner works and one cares for the children then you need two cars…and this cost needs to be factored in. Plus registration, insurance, fuel, garaging…
So you can see that ‘cost of living’ actually means the cost of living YOUR life. There may well be some things that are non-negotiable but there may be other things that you can compromise on in order to exchange your present life for one that you perceive to be better. The point is that you need to do your sums and take all the factors into account before deciding exactly where you are going to put your roots down.
Good luck – and please let us help you. We at the OGC Resource Centre have spoken to hundreds of folk like yourselves who are planning a move abroad. And also, sadly, those who have returned, having found that all was not as they thought it would be. Let us share our expertise with you – just phone 0207 898 0549 and have a chat.
Kim Brown
The Overseas Guides Company
http://www.Overseasbuyingguide.com
When you decided to emigrate I am sure that you looked at costs, including those to buy property and to move, but did you factor in the day to day cost of living? This can make quite a difference in your life style, to where you live and how you live. It would take more space than I have here to discuss each and every country in detail, but I have a few pointers that you may like to think about.
Food
In many countries, although food can be costly in the main cities it is usually much cheaper in more rural areas. You may also find that there you will be able to buy fresh produce locally, which will dramatically reduce the bills. My colleague Alexis, who has a home in France, visits the local weekly market to buy fruit and vegetables and says that the savings are quite dramatic. However it bears remembering that in, say, Greece, the islands - although many are rural - are sometimes more expensive as goods have to be shipped in. These are the things that you need to find out in advance and factor into your plans before you buy.
Utilities
The costs will vary, depending on the size of your home, how many people live there and where you are located. There may, however, be more than one provider and perhaps a comparison exercise would throw up a cheaper provider. A word to the wise here: my son has a far cheaper telephone line than mine, but there is always a problem with it…what’s the use of that? Best case scenario is that you chat to a local.
Schooling
You may find that free State schooling is available. But how good is it? And do you need to live in a more expensive or a rural area to access a better school? In South Africa for instance there are only a handful of State run schools that are rated as acceptable…and private schools really cost. This is the sort of thing that a good estate agent can give you the low-down on.
Health
You need to do your research here. Is there a State health care system that residents can use? If not you will need to pay for healthcare and this can prove very expensive. It is essential to check this out before committing yourself as this can be a deal breaker.
Transport
Costs can vary tremendously. You need to check this out carefully. In Johannesburg, South Africa, for instance - which is the country I know best – there is virtually no public transport system at all. I had a bad car accident and no longer wished to drive, and it is not safe to walk…problem! Also, if one partner works and one cares for the children then you need two cars…and this cost needs to be factored in. Plus registration, insurance, fuel, garaging…
So you can see that ‘cost of living’ actually means the cost of living YOUR life. There may well be some things that are non-negotiable but there may be other things that you can compromise on in order to exchange your present life for one that you perceive to be better. The point is that you need to do your sums and take all the factors into account before deciding exactly where you are going to put your roots down.
Good luck – and please let us help you. We at the OGC Resource Centre have spoken to hundreds of folk like yourselves who are planning a move abroad. And also, sadly, those who have returned, having found that all was not as they thought it would be. Let us share our expertise with you – just phone 0207 898 0549 and have a chat.
Kim Brown
The Overseas Guides Company
http://www.Overseasbuyingguide.com
Thursday 24 February 2011
Renting your holiday home out for some extra cash?
You may have bought a property abroad to stay yourself during holidays. You may however from time to time consider renting it out. Here are a few vital tips to remember:
1. Think about employing someone to make sure the gardens and the pool are kept looking immaculate. There is nothing more off-putting than a dirty pool and a messy garden. You will need to factor in an extra cost for someone to keep on top of maintenance if you are not there to do it yourself.
2. It is essential that bathrooms and kitchens are clean and well stocked. Inexpensive and easy to replace cutlery, crockery and glassware are essential in the kitchen plus toilet paper and towels in the bathroom.
3. If your property is suitable for families, most now expect there to be a washing machine - and a dishwasher is necessary too. Would you want to spend half your time washing by hand or washing up after each meal when on holiday?
4. Get a decent kitchen stove. My preference is for an electric stove – people can’t leave the gas on and cause an explosion.
5. When renting out, remove all objects that are precious to you. Trust me, they will be the things that get broken first – sod’s law! Many people put a lock on a cupboard or a loft and put all valuables safely hidden away.
6. Furniture should be strong, solid and robust. Ikea type is great, but ‘cheap as chips’ will probably turn out to be false economy.
7. You know how many people can stay in the house – in fact, when you rent it out you will no doubt specify this. Make sure there are enough chairs, crockery etc for the number of people that will be renting.
8. Spend a little extra on strong, firm yet comfortable mattresses. There is nothing like a really good, comfortable night’s sleep to make someone hasten to return or to recommend your property to friends and family.
9. Create an area and attractions guide. You’ll want to map out where the best pubs and restaurants are plus all the unmissable walks…This is just the sort of thing that makes people return time after time.
10. Throw in a welcome pack for each visitor; supply basic essentials like milk and bread together with some details of nearby shops, doctors, garages etc. Adding a bottle of the local wine cost very little but it will really endear you to your guest! (Letting agents will do this for you in you are not around)
11. You need to make sure that you are fully insured for visitors in your rental property. This is an absolute must.
12. Always ask for testimonials and feedback. That way you can correct any shortcomings and promote you property to prospective renters.
If you want a home with these qualities already built in, then I suggest you run them by your estate agent from the beginning of your search if you have not yet bought. And if you need any help just call the OGC Resource Team 0207 898 0549 - there is no cost or obligation to use our recommendations.
Kim Brown
The Overseas Guides Company
http://www.overseasbuyingguide.com/
1. Think about employing someone to make sure the gardens and the pool are kept looking immaculate. There is nothing more off-putting than a dirty pool and a messy garden. You will need to factor in an extra cost for someone to keep on top of maintenance if you are not there to do it yourself.
2. It is essential that bathrooms and kitchens are clean and well stocked. Inexpensive and easy to replace cutlery, crockery and glassware are essential in the kitchen plus toilet paper and towels in the bathroom.
3. If your property is suitable for families, most now expect there to be a washing machine - and a dishwasher is necessary too. Would you want to spend half your time washing by hand or washing up after each meal when on holiday?
4. Get a decent kitchen stove. My preference is for an electric stove – people can’t leave the gas on and cause an explosion.
5. When renting out, remove all objects that are precious to you. Trust me, they will be the things that get broken first – sod’s law! Many people put a lock on a cupboard or a loft and put all valuables safely hidden away.
6. Furniture should be strong, solid and robust. Ikea type is great, but ‘cheap as chips’ will probably turn out to be false economy.
7. You know how many people can stay in the house – in fact, when you rent it out you will no doubt specify this. Make sure there are enough chairs, crockery etc for the number of people that will be renting.
8. Spend a little extra on strong, firm yet comfortable mattresses. There is nothing like a really good, comfortable night’s sleep to make someone hasten to return or to recommend your property to friends and family.
9. Create an area and attractions guide. You’ll want to map out where the best pubs and restaurants are plus all the unmissable walks…This is just the sort of thing that makes people return time after time.
10. Throw in a welcome pack for each visitor; supply basic essentials like milk and bread together with some details of nearby shops, doctors, garages etc. Adding a bottle of the local wine cost very little but it will really endear you to your guest! (Letting agents will do this for you in you are not around)
11. You need to make sure that you are fully insured for visitors in your rental property. This is an absolute must.
12. Always ask for testimonials and feedback. That way you can correct any shortcomings and promote you property to prospective renters.
If you want a home with these qualities already built in, then I suggest you run them by your estate agent from the beginning of your search if you have not yet bought. And if you need any help just call the OGC Resource Team 0207 898 0549 - there is no cost or obligation to use our recommendations.
Kim Brown
The Overseas Guides Company
http://www.overseasbuyingguide.com/
Thursday 17 February 2011
Setting your intention to by overseas
The first step to buying overseas is to consider your options and to formalise your intentions. These may change or you may head off in another direction, but at least you’re organising your thoughts. So, if you are in the very early stages of thinking about buying overseas but are not quite sure where to go from there, or who to turn to for advice, settle down for a good read and let’s begin at the beginning.
Take the time to create a specific intention detailing what you would ideally like to achieve. For example, if you’re going to buy a holiday home, what would be the perfect property and the perfect location? If you’re buying for investment purposes, how much money do you want to make over and above the mortgage payments? At this stage, you may be totally off the mark about what is available – or indeed possible – but you need to start somewhere. Have a look at a few brief points below and see if you can start by answering some of them:
- Any idea of which area or region you are interested in?
- Town or countryside?
- What sort and size of house?
- An old house or a new build?
- How big a garden/terrace?
- Distance from shops/restaurants?
And what about answers to these questions?
- Distance from airport?
- Will you renovate or redecorate?
- What do other family members want?
- How soon do you want to get the ball rolling?
- How much time to you want to spend at the property?
- When would you like to have the property?
- How would you feel once you get your property?
- If you were to think of the ideal scenario, what would it look like? Don’t be afraid to let your imagination run wild.
Once you’ve had a chance to mull your intentions around in your head, write them down. This will allow you to start your search and successfully do your research! After you’ve determined your budget, done a few sums, researched information and gathered data from a variety of sources, you’ll then be in a position to think about accurately setting an objective.
The more time you take to really get to grips with what you want, why you want it and when you want to achieve it, the easier it will be for you to achieve you ambitions. Many people set off not knowing what they want and end up getting something that is not really ‘perfect’. With a bit of time for day dreaming and a log of your notes, you’ll set yourself up for a better outcome than just ‘winging it’.
Kim Brown
The Overseas Guides Company
http://www.Overseasbuyingguide.com
Take the time to create a specific intention detailing what you would ideally like to achieve. For example, if you’re going to buy a holiday home, what would be the perfect property and the perfect location? If you’re buying for investment purposes, how much money do you want to make over and above the mortgage payments? At this stage, you may be totally off the mark about what is available – or indeed possible – but you need to start somewhere. Have a look at a few brief points below and see if you can start by answering some of them:
- Any idea of which area or region you are interested in?
- Town or countryside?
- What sort and size of house?
- An old house or a new build?
- How big a garden/terrace?
- Distance from shops/restaurants?
And what about answers to these questions?
- Distance from airport?
- Will you renovate or redecorate?
- What do other family members want?
- How soon do you want to get the ball rolling?
- How much time to you want to spend at the property?
- When would you like to have the property?
- How would you feel once you get your property?
- If you were to think of the ideal scenario, what would it look like? Don’t be afraid to let your imagination run wild.
Once you’ve had a chance to mull your intentions around in your head, write them down. This will allow you to start your search and successfully do your research! After you’ve determined your budget, done a few sums, researched information and gathered data from a variety of sources, you’ll then be in a position to think about accurately setting an objective.
The more time you take to really get to grips with what you want, why you want it and when you want to achieve it, the easier it will be for you to achieve you ambitions. Many people set off not knowing what they want and end up getting something that is not really ‘perfect’. With a bit of time for day dreaming and a log of your notes, you’ll set yourself up for a better outcome than just ‘winging it’.
Kim Brown
The Overseas Guides Company
http://www.Overseasbuyingguide.com
Thursday 10 February 2011
How to find an independent solicitor or lawyer
When buying a property abroad, you’ll want to make sure that the contract of sale protects you, your money and your future property. With this in mind, it is absolutely essential that you get an independent and legally registered solicitor. However, doing this is not always as easy as you would think.
When you have decided on your property, it’s quite common for the developer or estate agent to simply take you to a solicitor who will handle the legal aspects of the purchase. This solicitor is often the same one that represents the property company - or one of a few that the agents send all their clients to.
Quite clearly, going to the solicitor who works for the property company creates a serious conflict of interest. If you were buying a home in the UK you would never consider buying a property from, say, Barratt Homes and then asking their solicitor to draw up your contract – would you? No – you would get your own solicitor to ensure that the correct searches are completed, that the contract protects you and the whole process is legally compliant.
Alternatively, going to an ‘independent’ solicitor the agent recommends means there is a good chance that the lawyers are beholden to the agent for future business…not good news for you.
In some countries it’s illegal for solicitors to advertise their services so they rely heavily on word-of-mouth and property agent recommendations. And because there are usually quite a few lawyers, many agents or developers choose to work with those who make sure the sale goes through easily and smoothly and works to their benefit.
Unfortunately, neither situation is good for the property buyer.
Buying in a foreign country does mean that if you choose to find a solicitor on your own, chances are they may be linked to your developer or agent anyway without you even knowing it. To avoid this some ex-pat organisations recommend that Brits choose a solicitor outside the area of purchase. By doing so, you’ll have more chance that your legal representative will do the right thing rather than bow to the needs and pressure of local developers.
In the UK, it is standard practice for your solicitor to work for your protection, but abroad it may be a case of ‘if you don’t ask, you don’t get’, especially if the solicitor is protecting the agent’s interests rather than yours. You need to remember too that you have the right to get your solicitor to insert any clause in your purchase contract that you deem reasonable. The developer/agent may or may not be happy with your requests, but it is your right to ask for what you want. Consider asking for the following:
- Protection against late delivery – ensure there is a hefty penalty charge for every month the property is late
- Make sure you can get your money back immediately if there is a situation where building permission is not granted
- Ask for freedom to sell the property at any time
- Dictate that the developer must insure the property against fire, earthquake and any foreseeable risk during the build
- Request there is a maximum fee for cancellation agreements (currently developers charge whatever they want!)
To conclude, there may be no foolproof way to find an ‘independent’ solicitor abroad, but there are definitely actions you can take to get as close as is humanly possible!
Never just take people at their word; do your own homework and your own research.
Just because lawyers in the UK have a high level of standards and ethics, don’t assume that it’s necessarily the same abroad. Not that I am implying that all solicitors abroad are not honest, but there is no doubt that some owe an allegiance to agents and /or developers and thus will not necessarily give you the protection that you need.
Kim Brown
The Overseas Guides Company
http://www.Overseasbuyingguide.com
When you have decided on your property, it’s quite common for the developer or estate agent to simply take you to a solicitor who will handle the legal aspects of the purchase. This solicitor is often the same one that represents the property company - or one of a few that the agents send all their clients to.
Quite clearly, going to the solicitor who works for the property company creates a serious conflict of interest. If you were buying a home in the UK you would never consider buying a property from, say, Barratt Homes and then asking their solicitor to draw up your contract – would you? No – you would get your own solicitor to ensure that the correct searches are completed, that the contract protects you and the whole process is legally compliant.
Alternatively, going to an ‘independent’ solicitor the agent recommends means there is a good chance that the lawyers are beholden to the agent for future business…not good news for you.
In some countries it’s illegal for solicitors to advertise their services so they rely heavily on word-of-mouth and property agent recommendations. And because there are usually quite a few lawyers, many agents or developers choose to work with those who make sure the sale goes through easily and smoothly and works to their benefit.
Unfortunately, neither situation is good for the property buyer.
Buying in a foreign country does mean that if you choose to find a solicitor on your own, chances are they may be linked to your developer or agent anyway without you even knowing it. To avoid this some ex-pat organisations recommend that Brits choose a solicitor outside the area of purchase. By doing so, you’ll have more chance that your legal representative will do the right thing rather than bow to the needs and pressure of local developers.
In the UK, it is standard practice for your solicitor to work for your protection, but abroad it may be a case of ‘if you don’t ask, you don’t get’, especially if the solicitor is protecting the agent’s interests rather than yours. You need to remember too that you have the right to get your solicitor to insert any clause in your purchase contract that you deem reasonable. The developer/agent may or may not be happy with your requests, but it is your right to ask for what you want. Consider asking for the following:
- Protection against late delivery – ensure there is a hefty penalty charge for every month the property is late
- Make sure you can get your money back immediately if there is a situation where building permission is not granted
- Ask for freedom to sell the property at any time
- Dictate that the developer must insure the property against fire, earthquake and any foreseeable risk during the build
- Request there is a maximum fee for cancellation agreements (currently developers charge whatever they want!)
To conclude, there may be no foolproof way to find an ‘independent’ solicitor abroad, but there are definitely actions you can take to get as close as is humanly possible!
Never just take people at their word; do your own homework and your own research.
Just because lawyers in the UK have a high level of standards and ethics, don’t assume that it’s necessarily the same abroad. Not that I am implying that all solicitors abroad are not honest, but there is no doubt that some owe an allegiance to agents and /or developers and thus will not necessarily give you the protection that you need.
Kim Brown
The Overseas Guides Company
http://www.Overseasbuyingguide.com
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