Currently viewing the tag: "overseas property investment"

I read about this at the weekend and as I have been considering investing my pension fund in overseas property, I thought it wise to share this with other property investors who may have already considered what originally looked like a superb investment opportunity.

 The Financial Services Authority (FSA) has issued an ‘alert’ about Harlequin Property and the Serious Fraud Office (SFO) has been asked to investigate.

Harlequin Property proposal for luxury resort

Artist impression of Harlequin Property proposal for luxury resort

Up to 3,000 UK based property investors have poured up to £250 Million (GBP) of their savings into a controversial Caribbean property scheme which is now facing the threat of legal action.

Many investors say they fear financial calamity after being persuaded by pension advisers to put large sums into projects run by Essex-based  Harlequin Property, who promised to build 6,000 luxury villas in St Lucia, St Vincent, Barbados and the Dominican Republic.

So far only 300 have been constructed.

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Five Important Aspects to Consider before investing overseas or buying a foreign investment property

Property Investors Dream Of Owning Property Overseas

Property Investors Dream Of Owning Property Overseas

Many UK property investors often dream of purchasing a single property abroad or even investing overseas in a ready made property portfolio. Although it is true that a great deal of money can be made by investing within the right market, this sector is not always plain sailing and inexperienced property investors can often find themselves getting into difficulty.

For this reason, it is crucial that buyers maintain a high level of caution before deciding to take the plunge and part with money to invest in a property overseas.

Five important aspects for consideration by property investors.

1. Think About The Reasons for Wanting to Invest Overseas

It is vital that property investors think carefully about the motives which make you want to invest in foreign property.

  • Do you want to invest because you have witnessed the positive market trends?
  • Do you feel obliged to invest in a particular country?
  • Will it be cost effective to own a property overseas rather than renting one yourself?

Before investing you need to do some vast research to ensure that there is a genuine demand for rental properties in your desired location. Carry out detailed calculations before buying to ensure that you will be making a long term profit on your foreign property.

2. Consider Travel Costs When Visiting and Maintaining a Property Overseas

Air travel is becoming more expensive, due to the price of fuel and carbon offsetting, for this reason, you must consider this aspect when purchasing an investment property abroad.

You may be required to visit the property for maintenance purposes or you could even be summoned to attend a court case in the country of purchase.

Think carefully before investing overseas as travel costs can quickly mount up, devouring any profit.

3. Be Realistic and Don’t Get Carried Away By Investment Hype

We all have seen the glossy magazine adverts pushing overseas property investment, however you must remain realistic and do a great deal of research regarding the location and costs in the area in which you would like to invest in a property. Talk to local residents and business owners and before signing contracts seek legal advice to ensure that you fully understand any clauses.

4. Check Market Viability Before Purchasing a Foreign Property

Before closing the deal you must find out how simple renting a property in your desired location is. Are there many empty properties in the area?

This is currently a large problem within the Spanish and Italian markets. Talk to a number of property agents in order to understand the local market before buying.

5. Think About the Potential of the Property in Question

How much money making potential does the property genuinely have?

If you are in the market solely to make a profit, consider low maintenance properties to keep costs down. Do your own due diligence, market research and operating and maintenance calculations to ensure that the property is worth investment.

At the end of the day, it is vital that you use your common sense within this competitive market and do not purchase a property unless you are 100% convinced that it is the right thing for you to do in today’s tough economy.

If you are ready to invest you can always find many reasonably-priced overseas properties for sale by clicking here.

Get your FREE Tickets to A Place in the Sun LiveMyPropertyPowerTeam.co.uk and “Spotlight” readers are being offered complimentary tickets to the ‘A Place in the Sun Live’ overseas property exhibition at the NEC, Birmingham, UK between Friday 28th and Sunday 30th September 2012.

The organisers are offering our readers FREE tickets, and you can get yours by clicking on any of the links in this post and following the instructions.

A Place in the Sun Live is the UK’s premier overseas property exhibition that is held twice per year in the UK and features thousands of overseas properties for sale by hundreds of exhibitors from over 40 countries worldwide.

With properties starting from less than £20,000 (GBP) to over £1 Million (GBP), there really is something to suit almost every budget and taste.

Free tickets to September's "A Place in the Sun Live"

Channel 4 TV presenters Amanda Lamb, Jasmine Harman and Jonnie Irwin will be appearing on the main stage over the weekend to give their top tips on buying property overseas.

Click Here for your FREE ticket

FREE Tickets to Septembers "A Place in the Sun Live"

Property Investors Dream Of Owning Property Overseas

Property Investors Dream Of Owning Property Overseas

The ‘Buy-To-Let’ or ‘Jet-To-Let’ market has boomed over the last decade, not just in the usual holiday markets such as Spain, France, Italy and Greece, but now there are endless possibilities in other countries such as Turkey, especially now with the recent Turkish Government announcement that the country wants more foreign investment. Right now purchasing Kalkan Properties look like a fantastic option for owning a holiday home in a tranquil resort with a superb Mediterranean atmosphere.

A small peaceful Mediterranean resort and fishing town on the beautiful Turquoise Coast of Turkey, Kalkan has not been touched by mass tourism. More sophisticated than the usual resort town, Kalkan appeals to travellers looking for more than a “sun and sea” holiday.

Buying the right property abroad and letting it out can potentially provide you with a good source of income and a holiday home. You will need to establish how the income will be taxed in both that country and in the UK.

Buying a property in another country is a lifelong dream for many property investors. With the promises of a better climate, cheaper property and a lower cost of living, it is easy to see why many investors are opting for a life-changing move abroad.

However, with the property market suffering in the UK and abroad, it is important to make sure you are getting the right advice and making the most of your money. Buying abroad can be a complex process and there are many investors who have made mistakes along the way.

There are several factors to consider which might enhance the potential of a successful buy-to-let property. The ideal area should attract tourists and have a fully developed tourist infrastructure, with lots of airports, regular budget flights and international attractions. Investors need to consider their purchases carefully, and determine the demographic market they wish to attract.

Property investors purchasing in a foreign country need to decide if they want to attract sun worshippers, golfers, families or retired couples? Would investors prefer a short but high rental season or a lower but steadier year round income? Foreign rental properties by the sea tend to experience short bursts of high rental yield, interspersed with periods of no rentals at all, dependent on the tourist seasons of the location.

Inland rental options, on the other hand, tend to provide lower, but continual rental returns. Obtaining information on the area and the potential rental income achievable is essential before you buy, and investors are urged to conduct thorough Due Diligence.

At some point you will need to convert your UK currency (GBP) into another currency to pay for your property, or to pay your overseas mortgage. It is important to remember that a change in the exchange rate between deciding to buy a property and the final payment could substantially increase the cost of the property purchase.

Each year, thousands of would be property investors head abroad without a definite idea of what they are looking for. At best they waste time; at worst they waste money and end up purchasing a property with which they are not entirely happy with. To work out whether the dream of buying a property abroad can become a reality, you first need to consider your investment objectives.

• Why do you want to buy abroad?

• How much will it cost?

• Can you afford it?

• What are the tax implications?

• Do you have a particular country and region in mind?

• Are you looking for a holiday home, a buy-to-let, an investment property or a permanent home?

• What size house are you looking for – how many bedrooms?

• Are you looking for a modern development or a more traditional property?

The more decisions you make now and the more research you do, the more you can narrow your search and be better equipped to save time and money later on.

For more on buying property abroad please visit our property sourcing overseas information pages

There Will Never Be A Better Time To Invest In Property

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