Press Release Summary: Investing in property overseas is a great thing, but good research is essential. That\'s the message frequently emphasised by property industry experts. There may be many pots of gold out there, but plenty of pitfalls as well.
Press Release Body: Investing in property overseas is a great thing, but good research is essential. That\'s the message frequently emphasised by property industry experts. There may be many pots of gold out there, but plenty of pitfalls as well.
The point was emphasised by Pelle Langli, chief executive officer for property consultancy Emerging Real Estate. He said: \"People do need to do their research. They have to stop and think about it. Does this actually stack up? Does the local economy stack up? Do the macro-economics stack up? Is this sustainable? And for the investment market, they need to look at exit options. How can I get out of this investment if I wanted to?\"
Mr Langli\'s advice may be well-needed. Figures from the Association of International Property Professionals (AIPP) show that in 2006 some £20 billion was spent by British investors overseas, with the average property investment costing over £98,000. Such large commitments clearly should not be taken lightly, or without a reasonable level of planning and common sense.
Using common sense is the advice recently given by Bill Jackson, director of Jackson International, a property sales firm which operates in Europe. He states that when buying in Spain, for example, the sort of preparation used when buying a property in the UK should apply there too. He said: \"Buying abroad is like buying here - you have to use diligence, not only on the title but also basically on the construction,\" advising that proper checks are done on the durability of the property.
Mr Jackson also advised that people should use interpreters when buying overseas property, emphasising that there were dangers in signing contracts in a language which the buyer was not fluent in: \"Interpretation can be totally different and words that are similar have very different meanings,\" he noted.
Fortunately, it seems that more and more investors are getting the message and becoming better aware of what they need to know, not least because much of it is available online. Apart from avoiding signing up to questionable clauses and not being ignorant about local tax laws, there is the matter of knowing what the real market values are when making the investment.
Agreeing that investors are becoming better informed, Mr Langli said: \"It\'s definitely a positive, having all the information out there on the internet. You can get a feel for what the real market values are before you go in to the market and that can only be a good thing.\"
Being more clued-up also benefits the investor by putting the onus on developers to produce something better than what is already available on the market. As a spokesman for consultants Knight Frank said: \"The buyer is a lot better informed and has a lot more choice, so the developers have to come up with new angles in terms of product, service, facilities and location.\"
Thus the advice from the property industry is clear: being well informed and having good research in place is the best thing any investor can do. Buying a property on a whim or a gut feeling, or without getting a clear translation of documentation, may be taking serious risks with what is a serious investment
2022
