Viewing Property Before Buying
It would be hard to imagine buying a real estate without viewing the property beforehand but some are apparently prepared to do that with properties in countries that the they have never visited or only visited long time ago and once in a while. With many central and eastern European countries opening up their property sector and with the promise of huge profit, there are more and more people who buy overseas properties with very little knowledge of what they are getting themselves into. Many agents now see it as increasingly important to provide common sense warnings to the rising number of investors going abroad for new properties.
Both the developer and buyer can benefit from the sale of purchase of overseas property before it is fully developed. The developer is given access to additional financing to further the development of the property and a welcome discount is usually offered to buyers for buying property still in the early building stages. This being said it can be inferred that when the risk lowers as the development is completed the price of investment will rise, which allows buyers to liquidate or "flip" the property before completion, effectively netting a profit before visiting or even viewing the property. The below highlight some of the points that buyers should consider when buying overseas properties.
When buying overseas property…
- Prepare and plan ahead and visit the property.
- Do as much research as possible on the property, the financial backing of the developer, and property costs in the area.
- If in doubt, be sceptical.
- Always use a local independent property lawyerlicensed by the local law society or bar association.
- Make sure (with the help of lawyer) that there is documented proof of a clean and unencumbered title to the property.
- Make sure that all aspects of the sale are fully documented and accounted for.
- Do not pay any money before a legally binding and sound contract is offered.
This article does not constitute financial or other advice and is intended to provide only general discussion and should never be used in place of professional advice. We accept no responsibility for any loss arising from any action taken or not taken by anyone using this material or in reliance thereof.