Purchasing real estate in a foreign country can seem like an attractive and profitable alternative. What could be better than purchasing a home in a foreign country where the weather is usually pleasant, the ocean is warm, the local cuisine is delicious, and the nearest beach is only a short walk away? If you can rent it out when you’re not using it very much. Making a little more money each month while also enjoying the benefits of having a vacation property that your friends and family love to visit is a win-win situation.
Despite the allure, there are substantial risks associated with purchasing real estate in another country. Rules and regulations may differ from those in the UK, and language barriers may further complicate matters. It’s unfortunate that many British citizens lose their savings while investing in real estate outside of the country.
For successful overseas real estate investments, remember these dos and don’ts:
Market research is essential.
There are, of course, similarities across the world’s real estate markets, but these tendencies can also differ from country to country, and what constitutes a wise investment in one place may not be so in another. There are cycles in the real estate market that you’ll want to be aware of if you plan on selling your home later. The best time to invest is when prices are low; the best time to sell is when they’ve risen. If you’re thinking about retiring there, though, you need make sure the community is improving, otherwise you can end up in a retirement community that isn’t growing.
Don’t make any hasty decisions.
It’s important to take your time when purchasing real estate in a foreign country, despite the fact that it’s tempting to go in feet first once you find your dream home. Research the area and the laws of purchase for foreigners in the country of your choosing. Before investing, it’s a good idea to do some research and look at other properties in the region.
Consider hiring a private lawyer.
One of the most common errors people make when purchasing property in a foreign country is failing to consult with an independent legal advisor. This includes not only a lawyer to oversee the proceedings, but also any necessary interpreters or translators. The owner, agent, or developer of the property you are purchasing can recommend a lawyer; but we advise that you find your own.
Maintain awareness of the current exchange rate.
You must include in the current currency rate into your calculations when investing in foreign property. Make sure to get advice from experts on the exchange rate before making a payment, or specify in the contract that payments will be made regardless of currency fluctuations. Keep in mind that this is a double-edged sword: if the local currency weakens, you can purchase the same piece of real estate for less money than you would if the prices had remained consistent. Find out as much as possible about it in advance.
Hiring an experienced real estate agency is a must.
In many cases, it is preferable to work with a reputable and professional agency when purchasing property abroad, even when it is feasible to deal directly with the owner. Make sure there is no stain on their reputation by reading reviews and researching their past transactions. Dealing with an unproven developer, owner, or agency increases the risk that anything may go amiss with the transaction.
Choose a real estate agency with a stellar reputation for honesty and professionalism in commercial transactions. Engel & Volkers is an industry leader because of the integrity and trustworthiness we show in our interactions with clients. View our Costa Blanca real estate listings and you’ll find some of the most promising real estate opportunities along the Costa Blanca.
The following is how to reach us:
Visit us at Carrer la Santamaría, 8 – 03710, Calpe (Alicante), Spain. Our hours are 10:00 a.m. to 7:00 p.m. Monday through Friday and 10:00 a.m. to 2:00 p.m. on Saturday.
If you’d rather get in touch with us remotely, Additionally, you can reach us by calling +34 966 93 72 56 or sending an email to altea-calpe@engelvoelkers.com
https://www.engelvoelkers.com/en-es/calpe/