The Property Banks Top 10 Pitfalls of Overseas Property Purchasing
1.
Overstretching your finances: don't jump on the bandwagon unless
you're sure you can afford it, especially if you plan to secure the
purchase against your UK home.
2. Buying sight unseen: if you buy an overseas property without
having seen it - and surprising numbers of people do - you've only
got yourself to blame if it ends up being a disaster.
3. Buying without a lawyer: lawyers might seem to make the process
complicated, but the work they do is vital to protect your best
interests. Pay extra for one who speaks good English and is
qualified in UK and foreign law.
4. Failing to check credentials: does the seller really own the
property? Is your estate agent really a qualified agent, and are
they bonded to hold a deposit on your behalf? What guarantees are
there if the developer goes bust?
5. Putting the deposit down too early: don't assume that your
deposit is returnable, even if it is described as a "reservation"
deposit. In most countries, paying a deposit commits you to the
purchase, so don't hand over any money unless you are sure you want
to buy.
6. Choosing on the basis of price: it might be tempting to buy a
property for the price of a second-hand car, but perhaps the reason
it's so cheap is that nobody else wants it.
7. Ignoring the ongoing costs: even if you hardly use it, keeping an
overseas property ticking over costs money. Insurance, maintenance,
property management fees, service charges and taxes all add up, so
work this out in advance.
8. Relying on budget airlines: cheap flights have opened up huge
tracts of Europe to property hunters, but don't assume they will
always be there. Ask yourself what would happen to your rentals if
routes to the little local airport disappeared.
9. Doing things on the cheap: if you want to avoid creating a white
elephant, don't cut corners when renovating. If you can't afford the
architects, surveyors and craftspeople to bring out your property's
potential, look for a different one.
10. Forgetting your heirs: if you want control over how your
overseas property is dealt with on your death, you need to make a
will. You might even need to make two - one here, and one there.