A Good Time To Buy Overseas?

The recent economic storm has caused a lot of uncertainty and fear. People wonder if their investments are safe, whether the price of their property will be devalued, and many ultimately query the future quality of their everyday lives.

Due to the fact that the economy is affecting everyone, chances are that if you have to sell a property at a discount, you’ll also be able to buy one at a discount (home or abroad). And if you don’t have to sell, it’s simply a matter of time before the economy will return and property values will bounce back.

But what does the economic situation mean for people wanting to buy an overseas property now? Buyers fall into three categories: Investors, Holiday Home Buyers and those Emigrating. Each category is fundamentally interested in increasing their quality of life in different ways. Investors want to make money, holiday home buyers want a 2nd home in the sun, with perhaps the option of having renters pay for the privilege and those emigrating want a new lifestyle – for example, one that provides better weather, less expenses and more enjoyment.

Although we’re in the midst of economic uncertainty it’s completely possible for all three categories to find success. Making plans to purchase overseas property in this current climate, however, is not for the faint hearted. Those adverse to risk or who get stressed easily should simply stay put and ride out the storm. Those who have a positive outlook on life and are looking for an adventure need not put their future on hold.

Investors can currently scoop up overseas properties for 40 – 50% below market value. There are a substantial amount of overseas property sellers (developers and private vendors) that must sell – and many will sell for the amount of the original loan, which could be a fraction of the property value. When picking up a seriously discounted property, an investor can sit on it until the storm passes and collect a hefty capital gain in the future.

Buyers interested in picking up an overseas pad for holidays have a huge variety of countries, properties and price ranges. The economic disturbance is affecting everyone and prices are dropping – If you’ve always dreamed of having a second home, yet thought the prices were to high, now’s your chance to get a real bargain. Provided that you’re interested in renting, it’s advised that you research areas with the highest tourism rates and the longest rental season.

As for those interested in emigrating…many plan to move abroad knowing exactly where they want to move and are passionate about their plans. Not only can buyers find a bargain property, but also they can negotiate a discount on removals, furniture, cars, and any service throughout the buying process. It is truly a buyers market - as long as you have the flexibility to go now, you’re in the driver’s seat. And rather than enduring the financial position in the UK, you can ride out the storm in sun!

It’s often been said that many people find success during crisis. Personally, I believe it’s all about attitude. If you have a positive outlook and feel inspired to take action there are opportunities everywhere. Turn off the news, stop buying the newspaper and focus on the end result you’d like to experience. Do your homework, take responsibility for your future and start a new adventure – who knows where it might take you!

Kim Brown
The Overseas Guides Company
Go to the main website at: http://www.overseasbuyingguide.com/

How to make your overseas buying dreams come true this year

I am unabashedly a list girl, so yes: I will be making a list of how to make your property purchasing dreams come true, but there is one thing that is by far and away the most important step. You must want it enough.

I know that sounds simplistic but it is nonetheless THE most important aspect of your dream. The reality is that there will be a fair amount of work ahead and you may encounter a few problems along the way so you need have the determination to push on with your quest, but remember that countless other people have done it and you can too. Here comes that list:

• Cost: It is essential that you have a clear idea of exactly how much you wish to spend from the outset – and then that you stick to your budget. If you need a mortgage, try to get an idea as to what sort of mortgage you can get up front, and certainly know what you can afford to repay. You also need to have a good knowledge of all costs that you will incur on purchase (both the cost of the property and the purchase charges), how much you will need to spend per annum, transport costs etc.
  
  
• A Currency company: Aligned to cost is that you open an account at a first class currency company, one certainly regulated by the Financial Services Authority (FSA) under the new Payment Services Regulations 2009. When I moved countries I was unaware of the enormous savings a currency company can secure. Go to: http://www.smartcurrencyexchange.com/ for an outline as to how they can save you heaps of money. And remember: if you decide on a price to pay for your new property, and are happy with that price, it may be best to lock your currency in at that day’s rate. Certainly people who did that in early 2009 laughed all the way to the …well, currency company, by the end of the year!
  
  
• Location: You will need to decide exactly where you wish to buy: this decision will be dependent on what you are using the property for. If you think you may want to rent it out at any stage, then the location is of primary importance. For instance you will need to think very carefully about access, both by air from the UK but also the distance from the airport once there
  
  
• List your requirements: Make a thorough list of your requirements, specifying what is absolutely essential to you: 3 bedrooms, a bathroom rather than a shower (my pet requirement!) etc – and don’t be swayed, no matter how pretty the house is
  
  
• Views: Ensure that your lovely view cannot be obscured: One of my saddest memories is of a couple who bought a flat abroad with a heavenly sea view. When they next visited the property, a huge block of flats totally obscured their view – they immediately put their property on the market, with their dreams in tatters
  
  
• Reputable Estate Agents: Decent agents will happily listen to your questions and answer them as best they can (plus we can help you find those agents!). You may be able to make offers of up to 20% less than the price they are asking if the area is one that is a buyer’s market - the agents we recommend will guide you as to which these are: make use of them!
  
  
• Lawyer: Always use your own independent lawyer. If you are recommended someone once on the spot, always ask for personal references and check them
  
  
• Sign ONLY when contract checked and correct: This may seem an obvious one but in the excitement of buying your property you may overlook the importance of getting your contract correct. If you don’t fully understand everything, get the contract translated, and changed if needs be
  
  
• And finally – take your time! Do not allow yourself to be rushed into anything – it’s a huge decision and one that you will have to live with, so make sure it is the right one
  
  
  If you need any help at all just phone the OGC Resource Team on 0207 898 0549 and they will gladly assist you where they can - there is currently no cost nor is there any obligation to use our recommendations at all.

Buying an Urban vs Rural Overseas Property – what’s best for you?

There’s been quite a few times in my life where I was positively certain that I wanted a particular item or a situation to happen yet when it did, I realised it wasn’t what I wanted after all. It comes down to the wise saying, ‘be careful for what you wish for as you just might get it!’ After years of conversing with overseas property buyers one major factor that causes ‘buyers remorse’ comes from city or town folk that buy a 2nd home or emigrate to the countryside rather than a more populated area.

We all have an idea of the positives of country life – the fresh air, peace and quiet, no crime, space and freedom. Sometimes those positive thoughts, however, can cloud our rational brain causing us to ignore the negatives too! In this months article, I’ve outlined common complaints that come from people that got what they wished for, but realised it wasn’t what they really wanted after all.

Too Quiet. Readers of my France Guide, John and Susan, moved to a rural area of France last year and at first they loved the country life. It wasn’t long, however before they discovered that life became a bit too dull. Susan explained, “We used to live in a UK village that had something going on every week and we weren’t far from a city that allowed us to get our culture fix. Now that we’re in the country, we really feel this lifestyle is too quite for us.” The couple have put their country home up for sale and are looking to move into a village to find some needed noise!

Fewer amenities and those in the area cost more. One of my Cyprus readers exclaimed that he’s spending more money living in Cyprus than he did when he lived in the UK. Neil moved to the Troodos Mountains to ‘get away from the rat race and depressing UK government.’ Neil wanted to find a simple, quite life – and one that allowed him to live well off his investments. Unfortunately, the cost of his life in the countryside wasn’t what he expected. The amount charged for groceries and basic supplies were very expensive locally, so he had to take a weekly two hour drive to the closest city to stock up. Neil states, ‘I’m still happy about my decision to move – however, if I knew what I know now, I would have found a place a little less secluded – one that’s closer to a more populated area and cheaper groceries!’

Healthcare – the closest medical facility is too far! No one expects to fall ill, nor do they want to speculate what they’ll do if poor health takes over. But what if you buy a home in the country and your health takes a temporary turn for the worse? When you’re unwell, you don’t want to travel hours to the closest medical facility. A reader that moved to Italy wrote to me stating, ‘Everything was going wonderful with our new place in the sun, but then my husband had a heart attack and our lives were thrown into disarray. Thankfully, he survived the attack and is doing well now, but for the past several months we’ve needed to travel 2 hours to the closest medical facility. We never thought about medical issues when we were searching for our Italian country home, but we’re now considering moving closer to a town that can cater to my husbands needs.’

Renters don’t want to rent because our property is too isolated. The Turners purchased a second home amongst some beautiful olive groves in Greece. The property needed a bit of renovation but it wasn’t long before their overseas property ticked all the boxes – or should I say ‘most of the boxes.’ Unfortunately, it took 2 hours and 45 minutes from the airport to the property and people looking for holiday lets weren’t interested in such a long commute. The Turners have since then sold their property and found another within twenty minutes of an airport – they’re having no problem renting it out.

My one bit of advice – try before you buy! If the countryside appeals to you, rent a property for as long as you can to determine if it truly is what you wish for!

Check out http://www.OverseasBuyingGuide.com