Don’t you just love it when a plan comes together? Wouldn’t it be wonderful to jet away to your place in the sun for brighter times? If only buying abroad was that easy….or is it? Well, thousands of us Brits do so every year according to the statistics – why not become one of them?
However, has the family agreed on the motive for buying? Is it a heart pounding, emotional fuelled, lifestyle purchase? Or is it a level-headed, pragmatic, money making decision? The majority of people probably want it all - the best of both worlds! However, that peaceful mountain retreat might not rent like the hedonistic beach front apartment…or should it be the city centre apartment which could rent well…but then…do you really want to stay in the business district?
Whatever motivates the purchase, there are certain principals that you should bear in mind, namely what liability are you taking on and can you afford it? With 80% of overseas purchases being mortgaged, make sure you choose the correct bank to fund your purchase. This can save you thousands in the long run. Do you need a bank that can facilitate re-finance? What about over-payments, what about off-setting income against mortgage costs? Is there a robust legal process and who should represent you? Cut costs here and you could lose the lot. Also, have you considered what type of property rents well in your chosen area: apartments or villas? These and many other factors need serious consideration upfront.
The bottom line is that all of the above involves money and lots of it, so talking to professionals is the key. This is a big commitment with big responsibilities. How does it fit into your overall financial plan? Speak with financial advisors who have overseas property experience (not all do), and are familiar with property investment strategies. Understanding the full financial commitment you are taking on, you can then feel confident that you are buying within your budget and not be in for any shocks along the way.
Your plan will only come together if you actually have one…and then stick to it! Even when buying the holiday home of your dreams the numbers must work… you must understand them, work them out in advance, and then confidently buy.
Until next time
Kim
The Overseas Guides Company
http://www.Overseasbuyingguide.com
Thursday, 25 November 2010
Wednesday, 17 November 2010
Do you own a furnished holiday let or serviced apartment in the EEC?
If yes…I’ve just met with a guy that told me how you can claim up to 30% of the purchase price of the property back from the UK tax man. Or…perhaps you don’t own one yet, but you’re interested in purchasing one? Read on as this will benefit you…
Claiming money back from the UK tax authorities from a furnished holiday let is one of those things that is out there for the taking…but if you don’t know about it…the tax man isn’t going to tell you about it! In addition to owning a furnished holiday let…If you pay UK income tax from any source, whether it’s PAYE or on a self-assessment basis and you want to reclaim some or all of the tax you paid in 2008/9 and 2009/10 as well as reduce the tax you pay this year, there’s a property tax specialist that you should consider contacting.
Last week I met with John Davies – he’s the MD of a company that specialises in helping property owners to claw back money from the tax man through the use of ‘capital allowances’. Apparently, it’s your statutory right to claim Capital Allowances but if your accountant doesn’t do it for you – or if you don’t do it yourself…you’re effectively missing out on tax rebate.
Our conversation was interesting – after John told me about all the people he’s helped, I asked him why everyone doesn’t file a claim. His answer was that people just don’t know about it. So – I told him that I’d mention his service in this week’s newsletter.
There are various tick boxes that need to be ticked to make a claim and of course there’s a very specific procedure to follow…but that’s why John’s company exists. To get more information or to find out how much you might be able to claw back, fill out your details on the form located on the site listed below. IMPORTANT NOTE: To claim back tax paid in 2008/2009 you need to get your skates on - your window of opportunity clses by the end of January.
So...if you own (or are about to own) a furnished holiday let and you want to know how to claim money back from the UK tax man fill out the form on: www.hedge-tax.co.uk/opg.html
Kim Brown
The Overseas Guides Company
Have you been to the main website yet? http://www.Overseasbuyingguide.com
Claiming money back from the UK tax authorities from a furnished holiday let is one of those things that is out there for the taking…but if you don’t know about it…the tax man isn’t going to tell you about it! In addition to owning a furnished holiday let…If you pay UK income tax from any source, whether it’s PAYE or on a self-assessment basis and you want to reclaim some or all of the tax you paid in 2008/9 and 2009/10 as well as reduce the tax you pay this year, there’s a property tax specialist that you should consider contacting.
Last week I met with John Davies – he’s the MD of a company that specialises in helping property owners to claw back money from the tax man through the use of ‘capital allowances’. Apparently, it’s your statutory right to claim Capital Allowances but if your accountant doesn’t do it for you – or if you don’t do it yourself…you’re effectively missing out on tax rebate.
Our conversation was interesting – after John told me about all the people he’s helped, I asked him why everyone doesn’t file a claim. His answer was that people just don’t know about it. So – I told him that I’d mention his service in this week’s newsletter.
There are various tick boxes that need to be ticked to make a claim and of course there’s a very specific procedure to follow…but that’s why John’s company exists. To get more information or to find out how much you might be able to claw back, fill out your details on the form located on the site listed below. IMPORTANT NOTE: To claim back tax paid in 2008/2009 you need to get your skates on - your window of opportunity clses by the end of January.
So...if you own (or are about to own) a furnished holiday let and you want to know how to claim money back from the UK tax man fill out the form on: www.hedge-tax.co.uk/opg.html
Kim Brown
The Overseas Guides Company
Have you been to the main website yet? http://www.Overseasbuyingguide.com
Wednesday, 10 November 2010
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/
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/
Thursday, 4 November 2010
Your house may be protected but are you?
Insurance is one of those things that we sometimes put off. But what you have to remember is that it’s not only about insuring our physical possessions (such as a house) but there are other types of insurance that may just save the day for your family if and when times get financially tough.
Let me explain.
Unemployment in October to December 2009 was 2.46 million, up 448,000 from this time last year. Not exactly encouraging reading - it's no wonder people are concerned about their financial security. Since the start of the recession, there's been renewed interest from some people in protection insurance policies. These come in different forms and it may just pay you to have a look at what is available.
The first thing to realise is that everybody‘s needs vary and only you can decide on what you need - or you with the help of an expert. We at the OGC often talk about the advisability of using a really good IFA (Independent Financial Advisor) to assist you here – if you need to be put in touch with someone we have a number of recommendations. These are people we have either used or sourced and carefully checked ourselves or those who have come highly recommended by other OGC readers.
The two main insurance options that may help you and/or your family financially in a time of crisis are Income Protection Insurance (IPI) and Life Insurance coverage.
What is IPI?
It is a form of cover that's designed to replace a proportion of your income should you become incapacitated and are unable to work. This might happen as the result of an accident, illness or injury or even should you lose your job. If you need to make a claim, your insurance provider will pay you a sum of money each month for however long you're out of work - or until you reach retirement age.
Should you take this out? Well, it may be best to find out if your employer covers you for this if you are employed, and what sort of sick pay you'd be entitled to in the event you had to take time off from your job. The level of salary you'd receive while ill, and the length of time you'd be paid for, may affect your decision.
If you are self-employed it may well be a very good idea. Just make sure that you read all exclusions, time frames etc. of the policy very carefully before signing – as I mentioned before my feeling would be to get professional help from someone here. The key thing to note about IPI is that it will pay out while you are still alive, perhaps providing you with an income for many years. If you are planning on buying a house and have children to educate it would mean that you would be assured of an income no matter what.
What about Life Insurance?
This is a form of protection insurance that pays out a lump sum on your death and mainly taken out by the breadwinner, one who has a family that is dependent upon them to pay the bills. This includes child care and education plus things like all, or your portion of, a mortgage on your home.
You may feel that both policies are vital and, in an ideal world, it would be great to have both. However, if you – like most people – have to decide on one or the other then it’s up to you to decide which offers the most protection for you and your loved ones.
You may find that your company really looks after you if you are sick but that there are no death benefits for your family. Or the reverse: that you get very little time off if you fall ill but that your family would receive death in service benefits from your employer if you died.
If we at the OGC Resource Centre can help in any way please just give us a phone call on 0207 898 0549 and let’s chat about it.
Kim
The Overseas Guides Company
Visit the main website at: http://www.OverseasBuyingGuide.com
Let me explain.
Unemployment in October to December 2009 was 2.46 million, up 448,000 from this time last year. Not exactly encouraging reading - it's no wonder people are concerned about their financial security. Since the start of the recession, there's been renewed interest from some people in protection insurance policies. These come in different forms and it may just pay you to have a look at what is available.
The first thing to realise is that everybody‘s needs vary and only you can decide on what you need - or you with the help of an expert. We at the OGC often talk about the advisability of using a really good IFA (Independent Financial Advisor) to assist you here – if you need to be put in touch with someone we have a number of recommendations. These are people we have either used or sourced and carefully checked ourselves or those who have come highly recommended by other OGC readers.
The two main insurance options that may help you and/or your family financially in a time of crisis are Income Protection Insurance (IPI) and Life Insurance coverage.
What is IPI?
It is a form of cover that's designed to replace a proportion of your income should you become incapacitated and are unable to work. This might happen as the result of an accident, illness or injury or even should you lose your job. If you need to make a claim, your insurance provider will pay you a sum of money each month for however long you're out of work - or until you reach retirement age.
Should you take this out? Well, it may be best to find out if your employer covers you for this if you are employed, and what sort of sick pay you'd be entitled to in the event you had to take time off from your job. The level of salary you'd receive while ill, and the length of time you'd be paid for, may affect your decision.
If you are self-employed it may well be a very good idea. Just make sure that you read all exclusions, time frames etc. of the policy very carefully before signing – as I mentioned before my feeling would be to get professional help from someone here. The key thing to note about IPI is that it will pay out while you are still alive, perhaps providing you with an income for many years. If you are planning on buying a house and have children to educate it would mean that you would be assured of an income no matter what.
What about Life Insurance?
This is a form of protection insurance that pays out a lump sum on your death and mainly taken out by the breadwinner, one who has a family that is dependent upon them to pay the bills. This includes child care and education plus things like all, or your portion of, a mortgage on your home.
You may feel that both policies are vital and, in an ideal world, it would be great to have both. However, if you – like most people – have to decide on one or the other then it’s up to you to decide which offers the most protection for you and your loved ones.
You may find that your company really looks after you if you are sick but that there are no death benefits for your family. Or the reverse: that you get very little time off if you fall ill but that your family would receive death in service benefits from your employer if you died.
If we at the OGC Resource Centre can help in any way please just give us a phone call on 0207 898 0549 and let’s chat about it.
Kim
The Overseas Guides Company
Visit the main website at: http://www.OverseasBuyingGuide.com
Wednesday, 27 October 2010
Mortgages in a foreign currency – the whys and wherefores…
When I heard that you could take out a mortgage in Swiss francs to pay for a house in, say, Cyprus I was amazed. I had heard of Cypriot euro mortgages and of UK sterling mortgages…but a Swiss franc mortgage? In Cyprus? That was a new one on me!
Actually, there can be sound reasons behind this seemingly strange move. Mortgage interest rates in the UK or Cyprus are significantly higher than they are in Switzerland. You can borrow the money you need in Swiss francs, secure the debt against your house, and pay a much lower rate of interest. This applies to buying property and getting a mortgage in any country abroad.
This is all well and good, but you need to remember that there is a very good reason that not everybody does this – there are considerable risks involved – risks that people are not always made aware of.
You will own a property in Cyprus that is valued in euros, yet your mortgage is in Swiss francs, and you could be earning your income in pounds. If exchange rates move against you, you could well lose the benefit of the interest rate saving and end up owing more capital than at the outset of the mortgage.
Why? Well, you will lose out on some of your interest advantage because you will pay a premium to borrow currency from another country. True, if interest rates continued at the same rate as you borrowed at there are large savings to be made. But if interest rates increased, then you would lose a lot of the advantage gained between the foreign mortgage and the standard UK mortgage.
In these economically unpredictable times who knows what could happen? Interest rates in the EU and in Switzerland stayed stable for years but all bets are off today. Also, there is the gremlin that we know as Currency Exchange Rates. If you have travelled in the last year or so I am sure I don’t need to tell you that herein lies the most unpredictable area of risk.
Currency Exchange Rates change by the minute – sometimes quite considerably – and what you are paying for your mortgage in Swiss Francs one month may rise quite dramatically from one month to the other.
Because you borrowed in Swiss francs, the mortgage must be repaid in Swiss francs. If sterling strengthened against Swiss francs you’d literally be laughing all the way to the bank. Unfortunately this has not been the case of late…quite the opposite in fact.
Smart client Joy Wenman ruefully wrote to Charles: “Because we rely on sterling we were at first paying £1,700 sterling per quarter but now it is more like £2,500 sterling.” Quite a difference...
As Charles Purdy, director of Smart Currency Exchange, comments: “I did warn a number of clients at the time of taking out Swiss franc mortgages of the currency risk versus the interest rate benefit. Sadly I have been proved right over the years.”
Forewarned is Forearmed and it is as well to bear this in mind and to make sure that you cover yourself against any currency fluctuations.
Ms Wenman’s experience is a common one, but it need NOT have been the case. There is a way that you can ensure that the exchange rate doesn’t move against you: it is called ‘forward buying’.
When you ‘forward buy’ your currency, you are given a predetermined rate that will then remain unchanged for a predetermined time. This means that at least you will know exactly how much you are paying for the months ahead - you know the cost and don’t have to worry that it will increase.
The scenario that Ms Wenman experienced can be avoided, with the help of a little foresight and the assistance of a really good currency company.
All in all, this is not an easy decision and you need to consult the experts. A really good IFA (Independent Financial Advisor) and a relationship with a good currency exchange expert could well be worth their weight in gold! To be put in touch with recommended experts just call the OGC Resource Centre on 0207 898 0549, or call Smart Currency Exchange direct on 0207 898 0541 to discuss your currency options.
Kim Brown
http://www.overseasbuyingguide.com
Actually, there can be sound reasons behind this seemingly strange move. Mortgage interest rates in the UK or Cyprus are significantly higher than they are in Switzerland. You can borrow the money you need in Swiss francs, secure the debt against your house, and pay a much lower rate of interest. This applies to buying property and getting a mortgage in any country abroad.
This is all well and good, but you need to remember that there is a very good reason that not everybody does this – there are considerable risks involved – risks that people are not always made aware of.
You will own a property in Cyprus that is valued in euros, yet your mortgage is in Swiss francs, and you could be earning your income in pounds. If exchange rates move against you, you could well lose the benefit of the interest rate saving and end up owing more capital than at the outset of the mortgage.
Why? Well, you will lose out on some of your interest advantage because you will pay a premium to borrow currency from another country. True, if interest rates continued at the same rate as you borrowed at there are large savings to be made. But if interest rates increased, then you would lose a lot of the advantage gained between the foreign mortgage and the standard UK mortgage.
In these economically unpredictable times who knows what could happen? Interest rates in the EU and in Switzerland stayed stable for years but all bets are off today. Also, there is the gremlin that we know as Currency Exchange Rates. If you have travelled in the last year or so I am sure I don’t need to tell you that herein lies the most unpredictable area of risk.
Currency Exchange Rates change by the minute – sometimes quite considerably – and what you are paying for your mortgage in Swiss Francs one month may rise quite dramatically from one month to the other.
Because you borrowed in Swiss francs, the mortgage must be repaid in Swiss francs. If sterling strengthened against Swiss francs you’d literally be laughing all the way to the bank. Unfortunately this has not been the case of late…quite the opposite in fact.
Smart client Joy Wenman ruefully wrote to Charles: “Because we rely on sterling we were at first paying £1,700 sterling per quarter but now it is more like £2,500 sterling.” Quite a difference...
As Charles Purdy, director of Smart Currency Exchange, comments: “I did warn a number of clients at the time of taking out Swiss franc mortgages of the currency risk versus the interest rate benefit. Sadly I have been proved right over the years.”
Forewarned is Forearmed and it is as well to bear this in mind and to make sure that you cover yourself against any currency fluctuations.
Ms Wenman’s experience is a common one, but it need NOT have been the case. There is a way that you can ensure that the exchange rate doesn’t move against you: it is called ‘forward buying’.
When you ‘forward buy’ your currency, you are given a predetermined rate that will then remain unchanged for a predetermined time. This means that at least you will know exactly how much you are paying for the months ahead - you know the cost and don’t have to worry that it will increase.
The scenario that Ms Wenman experienced can be avoided, with the help of a little foresight and the assistance of a really good currency company.
All in all, this is not an easy decision and you need to consult the experts. A really good IFA (Independent Financial Advisor) and a relationship with a good currency exchange expert could well be worth their weight in gold! To be put in touch with recommended experts just call the OGC Resource Centre on 0207 898 0549, or call Smart Currency Exchange direct on 0207 898 0541 to discuss your currency options.
Kim Brown
http://www.overseasbuyingguide.com
Tuesday, 19 October 2010
Bargain Hunt: getting the best deal
The worldwide recession has affected almost all aspects of our life, not the least the property market.
In some countries and regions, property prices increased astronomically in the past - a couple of years ago reports of 10 to 30 percent increases annually were normal. In many cases these increases bore no relation to the value of the property. However, despite the fact that the economy remains uncertain, it seems that demand for overseas property is still there. What has changed is that it’s now a buyer's market. Snapping up a bargain from an investor who is cutting their losses is something to be considered as property prices continue to decline across the globe.
Have you seen that TV advert where a chappie (with, I think, a Greek accent?) remonstrates with office workers because they simply can’t negotiate on prices? There is some truth in this: the Brits are renowned for their inherent politeness and inability to haggle. In today’s property market this could mean missing out on some really quite dramatic price reductions!
Both private sellers and developers alike are discounting properties while adding incentives to secure sales. Around the Mediterranean many developers are slashing prices AND sometimes throwing in white goods like air conditioners or the entire property completely furnished at no extra cost! These are the kind of deals you need to be looking for.
Many private sellers are experiencing financial difficulties having purchased off-plan property several years ago with the intention of selling for a profit on completion. There is now a surplus of new homes for sale and a lack of demand - many sellers would be more than happy to sell at a break-even price. Imagine getting a property for the price someone paid for it three years ago - it's more than possible.
Provided the owner or developer purchased the property before the ridiculous price hikes, it wouldn't be difficult for them to drastically reduce their sales price to get a quick sale – and in some cases still make a profit. Plus of course when they bring the money back to the UK they may be getting a better exchange rate on their funds, depending on what currency they are selling in and how it has fared against sterling. Effectively this means that they may sell for less than they paid and yet still get their money back - or even make a profit!
And this brings me to a very important aspect of netting yourself a bargain: the transfer of currency abroad. Many people, and at one time I numbered myself among them, are unaware that exchange rates differ dramatically between banks and really good currency companies such as Smart Currency.
Also, if you are making an offer in euros and then calculating what that will cost you in sterling on the day of your offer, you need to lock the currency in at that rate. That way you will know exactly what the property is costing you; you would be horrified to know how much some people’s cost has risen by when they have omitted this vital step. You don’t even need to have the full payment available when you do this: a currency company will reserve your exchange rate for up to a year for just a small deposit – what price peace of mind?
So - how can you get the best deal? The quick answer is to make discounted offers on a number of properties - sooner or later someone will agree to negotiate. How much should you discount on the asking price? That all depends on how eager you are to get a good deal and where you are buying.
If you're interested in investing it's absolutely paramount that you do your homework and create a strategy. If you're going to buy to sell on you need to determine the real market value - what people are prepared to pay for the property today. You also need to determine who's going to buy the property (target market) and if there is enough demand. Provided that you think you can sell the property at market value, you have to make offers way below that price point. Do your research, determine the costs associated with buying and then factor in your profit - people make a living from buying at below-market value and it can be very lucrative.
It can also be extremely expensive if done incorrectly. If you need any assistance with this please phone the OGC Resource Centre. They have all been involved in property investment and purchase for years and would be happy to share their expertise and their recommendations with you.
Bye for now and go get ’em!
Kim Brown
http://www.overseasguidescompany.com
In some countries and regions, property prices increased astronomically in the past - a couple of years ago reports of 10 to 30 percent increases annually were normal. In many cases these increases bore no relation to the value of the property. However, despite the fact that the economy remains uncertain, it seems that demand for overseas property is still there. What has changed is that it’s now a buyer's market. Snapping up a bargain from an investor who is cutting their losses is something to be considered as property prices continue to decline across the globe.
Have you seen that TV advert where a chappie (with, I think, a Greek accent?) remonstrates with office workers because they simply can’t negotiate on prices? There is some truth in this: the Brits are renowned for their inherent politeness and inability to haggle. In today’s property market this could mean missing out on some really quite dramatic price reductions!
Both private sellers and developers alike are discounting properties while adding incentives to secure sales. Around the Mediterranean many developers are slashing prices AND sometimes throwing in white goods like air conditioners or the entire property completely furnished at no extra cost! These are the kind of deals you need to be looking for.
Many private sellers are experiencing financial difficulties having purchased off-plan property several years ago with the intention of selling for a profit on completion. There is now a surplus of new homes for sale and a lack of demand - many sellers would be more than happy to sell at a break-even price. Imagine getting a property for the price someone paid for it three years ago - it's more than possible.
Provided the owner or developer purchased the property before the ridiculous price hikes, it wouldn't be difficult for them to drastically reduce their sales price to get a quick sale – and in some cases still make a profit. Plus of course when they bring the money back to the UK they may be getting a better exchange rate on their funds, depending on what currency they are selling in and how it has fared against sterling. Effectively this means that they may sell for less than they paid and yet still get their money back - or even make a profit!
And this brings me to a very important aspect of netting yourself a bargain: the transfer of currency abroad. Many people, and at one time I numbered myself among them, are unaware that exchange rates differ dramatically between banks and really good currency companies such as Smart Currency.
Also, if you are making an offer in euros and then calculating what that will cost you in sterling on the day of your offer, you need to lock the currency in at that rate. That way you will know exactly what the property is costing you; you would be horrified to know how much some people’s cost has risen by when they have omitted this vital step. You don’t even need to have the full payment available when you do this: a currency company will reserve your exchange rate for up to a year for just a small deposit – what price peace of mind?
So - how can you get the best deal? The quick answer is to make discounted offers on a number of properties - sooner or later someone will agree to negotiate. How much should you discount on the asking price? That all depends on how eager you are to get a good deal and where you are buying.
If you're interested in investing it's absolutely paramount that you do your homework and create a strategy. If you're going to buy to sell on you need to determine the real market value - what people are prepared to pay for the property today. You also need to determine who's going to buy the property (target market) and if there is enough demand. Provided that you think you can sell the property at market value, you have to make offers way below that price point. Do your research, determine the costs associated with buying and then factor in your profit - people make a living from buying at below-market value and it can be very lucrative.
It can also be extremely expensive if done incorrectly. If you need any assistance with this please phone the OGC Resource Centre. They have all been involved in property investment and purchase for years and would be happy to share their expertise and their recommendations with you.
Bye for now and go get ’em!
Kim Brown
http://www.overseasguidescompany.com
Wednesday, 13 October 2010
The idea to move abroad is born – and with it comes excitement, anticipation and a renewed sense of direction
At first, there is just a small thought that sparks and we ask ourselves, “Could it be achievable?” Then a plethora of possibilities opens up. Not before long, we are enquiring about property prices, cost of living and employment. Our daydreams turn to visualisations of our possible new life overseas. We see ourselves smiling more – and enjoying life with increased vigour.
Most people have the idea and the spark, but soon lose their drive. They are the people who grow old and say, “If only.”
Then there are those who have the passion and desire to carry their plans to fruition. Regardless as to your resolve, however, there will always be times when you doubt yourself. Your excitement will allow you to make massive strides, but at some point you will stop to catch your breath and wonder if you are making the right decision.
Mrs Turner, new to the world of overseas living, explained “I spent all my spare time planning, preparing and ticking off endless lists. After a few months I felt overwhelmed – was I merely caught up in ‘living the dream’ or did I truly understand what was to come? And how could I make sure that I wasn’t making a big mistake?”
Unfortunately, there are quite a few people who return to the UK not long after an overseas move. Sometimes people repatriate due to health matters, missing family or simply missing their old way of life. Others move back because the dreams they floated on did not match the reality.
One way to ensure that you are making the right decision is to “play house” in your overseas location.
Try to make arrangements to stay in your desired location for as long as possible, be it a few weeks or a month. Then make plans to enjoy the location without being a tourist. This means rather than stay in a hotel, rent a villa or better yet, do a house swap. Instead of visiting the main attractions, check out all the things that locals do. Go grocery shopping, check out employment adverts and do everything you would normally do if you were moving from one town in the UK to another.
When Mrs Turner felt overwhelmed, she decided to book a two week trip to her future destination. Although she had spent several holidays there, she never spent the duration knowing that it would one day be called “home.”
Mrs Turner said, ‘It was the best decision I made. By spending two weeks in my future town I was able to better set my expectations. I went to the doctors, paid a visit to a community centre, made enquiries about a local art class and made sure to eat most of my meals at home. By the end of the two weeks, I realised that some of my expectations were a bit too high whereas others were too low. Overall, the holiday gave me the needed push to set me back on track.”
By giving yourself time to be a resident, rather than a tourist, you will get a more realistic idea of life in your desired location. As with Mrs Turner, time spent in your future destination may also give you even more reason to fulfil your plans.
As with all areas in the world, there will be pros and cons and without experiencing life as a local, it is very easy to make a move without knowing exactly what the negatives and positives are.
Spending time on holiday is very different from making a holiday destination a home.
During the process of playing “house”, you might want to test public transport to see how reliable it is, stroll through the area at different times of the day to listen out for noise, buy the type of groceries you normally purchase to determine if they are available and at what price – and definitely check out health services – how far away are they and will they cater to your needs?
The more you match your needs to your overseas destination, the less likely you will be to ask, “Am I making the right decision?”
Kim Brown
www.overseasguidescompany.com
Most people have the idea and the spark, but soon lose their drive. They are the people who grow old and say, “If only.”
Then there are those who have the passion and desire to carry their plans to fruition. Regardless as to your resolve, however, there will always be times when you doubt yourself. Your excitement will allow you to make massive strides, but at some point you will stop to catch your breath and wonder if you are making the right decision.
Mrs Turner, new to the world of overseas living, explained “I spent all my spare time planning, preparing and ticking off endless lists. After a few months I felt overwhelmed – was I merely caught up in ‘living the dream’ or did I truly understand what was to come? And how could I make sure that I wasn’t making a big mistake?”
Unfortunately, there are quite a few people who return to the UK not long after an overseas move. Sometimes people repatriate due to health matters, missing family or simply missing their old way of life. Others move back because the dreams they floated on did not match the reality.
One way to ensure that you are making the right decision is to “play house” in your overseas location.
Try to make arrangements to stay in your desired location for as long as possible, be it a few weeks or a month. Then make plans to enjoy the location without being a tourist. This means rather than stay in a hotel, rent a villa or better yet, do a house swap. Instead of visiting the main attractions, check out all the things that locals do. Go grocery shopping, check out employment adverts and do everything you would normally do if you were moving from one town in the UK to another.
When Mrs Turner felt overwhelmed, she decided to book a two week trip to her future destination. Although she had spent several holidays there, she never spent the duration knowing that it would one day be called “home.”
Mrs Turner said, ‘It was the best decision I made. By spending two weeks in my future town I was able to better set my expectations. I went to the doctors, paid a visit to a community centre, made enquiries about a local art class and made sure to eat most of my meals at home. By the end of the two weeks, I realised that some of my expectations were a bit too high whereas others were too low. Overall, the holiday gave me the needed push to set me back on track.”
By giving yourself time to be a resident, rather than a tourist, you will get a more realistic idea of life in your desired location. As with Mrs Turner, time spent in your future destination may also give you even more reason to fulfil your plans.
As with all areas in the world, there will be pros and cons and without experiencing life as a local, it is very easy to make a move without knowing exactly what the negatives and positives are.
Spending time on holiday is very different from making a holiday destination a home.
During the process of playing “house”, you might want to test public transport to see how reliable it is, stroll through the area at different times of the day to listen out for noise, buy the type of groceries you normally purchase to determine if they are available and at what price – and definitely check out health services – how far away are they and will they cater to your needs?
The more you match your needs to your overseas destination, the less likely you will be to ask, “Am I making the right decision?”
Kim Brown
www.overseasguidescompany.com
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