Buying an off-plan property abroad
Anyone with an interest in anything off plan should now be
familiar with Spain and the off plan scene. We've all got the
hang of it and we pretty much know what to expect and what not
to expect. It isn't far, you can fly back and forth, and most
people have a least a friend or relative out there that can keep
you in touch with your investment. Even if you don't have a
'connection' in Spain, it is likely that you know someone else
who is also buying off plan to swap notes with.
So, now you've got some off plan buying experience under your
belt you might want to take your interest further afield.
However, further afield can mean unknown territory and with many
investors buying off plan in countries that they have never even
visited, you should expect some unexpected.
So what should you be aware of when buying off plan in Bulgaria,
Turkey and even Latvia? Unfortunately, we cannot cover ever
possible eventuality for every country that sells off plan. But,
just like buying in Spain, we mustn't get carried away and
forget to apply common sense to every decision. Buying off plan
is never risk-free and buyers often face a disappointment of
some sort.
The following tips should be applied when buying in any country:
Use an agent recommended by a friend or an independent company
or organisation that you have dealt with and trust. Look out for
an accredited agent such as members of The National Association
of Estate Agents (www.naea.co.uk).
If you are buying directly from the developer, ask for a
considerable discount, because they are saving on big commission
fees which they would otherwise pay an agent.
Do some research on the developer's reputation, the internet is
your best resource for this.
Do judge the project on the promoters, if they don't inspire
confidence, then find someone else, even if it does seem a good
price. There's a lot of choice, be picky.
Make sure that the builder has a license to build on the land.
Make sure that the project has a bank guarantee, in case it
falls through, in order to get your money invested back. Get a
recommended lawyer, preferably not by an agent, to check the
contract.
Remember that when you hand over a considerable deposit at least
two years in advance of completion, the builders are earning
interest on your money whilst you will be spending the next
couple of years in quite a powerless position, hoping that there
won't be delays.
Take a good look around the plot and imagine all possible
building scenarios. Let your imagination run wild, as we have
come across many buyers who find that their view of Spanish,
rustic countryside is replaced by cranes and foundations even
before they've moved in. Do not take a view for granted unless
you are front line beach. Protected land can very quickly become
unprotected as developers have ways and means of getting the
land that they want.
Try to find out what building work is scheduled in the
surrounding area. It could be that the developer has further
phases planned which would affect the rentability of your
property.
Do not buy because of golf courses, leisure complexes and luxury
'Banus' style ports as they often don't materialise.
Really think hard and don't be blinded by the sun. Try to be
practical about proximity to shops, noise levels, airports,
schools, hospitals, and the beach and for some, jobs. Will you
need to buy at least one car for the family to live in the area?
If you are going to rent it out, what does your target market
need?
Visit as many developments as you can to find out what you don't
want before you commit.
If you plan to live in the property, be prepared to rent for a
period as it may not be finished on time.
Do not count on a rental income until at least a couple of
months after collecting the keys as there will be outstanding
snagging problems.
Quiz the promoters to find out general information about the
other buyers e.g. nationality, age etc as they are going to be
your neighbours. Try to predict the tone of the future community
and ask yourself if that is what you want. Look at what is
located nearby to predict who might buy or rent there for access
to work.
Security - what will the provision be for the protection of
owners. Some types of property are safer than others e.g. a
third floor apartment is less likely to be burgled than a ground
floor one.
Analyse the plans of the development and of several properties.
Ask for plans with a scale and accurate room dimensions. Really
think about what you need and what suits your lifestyle e.g.
more indoor or outdoor space etc. Find out what is included e.g.
kitchen fittings, air conditioning etc.
Talk to relatives, friends and friends of friends, there is
always someone who has bought in the country you are thinking of
buying in.
Internet research, although you may be overwhelmed by the amount
of real estate agents that appear.
Don't rely on estate agent's information as they may have
ulterior motives such as high commissions for particular
developments which they will push you towards.
Visit the country and choose a specific area that appeals to you.
Read The Times Sunday Homes Section.
Read real life case studies in magazines aimed at buyers of
overseas property.
Find relevant internet forums to share information.
Check out Eye on Worldwide (www.eyeonworldwide.com) message
boards to find out what buyers are saying about the development
that you are thinking of buying on.