Overseas property is something that appeals to many investors. The mistake made by many, though, is to leap in headfirst without having done the necessary research. This can lead to costly mistakes. Here are a few of the most common errors you should avoid when buying a property abroad.
The first and largest of the mistakes made when purchasing a property is a failure to plan ahead. The inexperienced investor may see a property for sale and buy it simply because it looks like a bargain. They have no overall investment strategy. It’s important you begin by creating a longer-term for your investment and then seek out the right property that matches this.
Another common error is in assuming that your purchase will make you rich overnight. There’s no doubt that property bought in certain locations can prove a lucrative investment, but this tends to happen over a period of years. Research the market, look widely around for sound options and never rush into a purchase. Consider your funding options carefully as well, from homeowner loans to borrowing from friends and family.
Besides this, a common miscalculation is when it comes to the numbers. Make sure you know what liabilities come with property ownership and plan for them, such as property maintenance and management. It’s easy to forget about this expenditure in the excitement of your first investment. There will be costs associated with advertising the property for rent; insurance; local taxes; and possibly mortgage payments to be considered. Don’t let your asset become a liability.
Buying A Property Abroad: Mistakes Made When Choosing An Agency
Real estate agency services are something you will need to choose with care if you are interested in buying a property. There are many different estate agencies to choose from, but not all of them will provide you with the reliable and high-quality service you require. Therefore, read on to discover some of the most common mistakes made when looking for an estate agency so that you can avoid them.
One of the biggest errors people make when choosing a real estate company is selecting one without considering how well they know the market. A lot of British buyers have a tendency to go with a company that has numerous properties scattered across Europe. Instead, you should look for a business that has specialist experience in the country in question itself, rather than a jack-of-all-trades, so to speak.
In addition to this, you need to make sure that the company has a good reputation in the industry. Spend time looking online and reading reviews that have been left by those who have used each estate agency before. This will give you a good idea as to whether a particular company is one to be trusted.
Another error a lot of novice investors make is buying a property from an estate agency that does not provide them with the legal paperwork that is required. This is an extremely risky approach to take and should be avoided at all costs. Furthermore, you can never be too cautious about checking out who you are dealing with. There are many agents that are not regulated or licensed, so never be too trusting without clarifying this first.
The Stand-Out Location For International Buyers: Istanbul
Istanbul property investment is a wise choice for anyone who is looking at buying a property abroad and to invest in property in Turkey. The location has such a standing that a lot of people often mistake it for being Turkey’s capital city. With that being said, continue reading to discover all you need to know about investing in an Istanbul property.
There is no denying the fact that Istanbul is the stand-out location in Turkey for those who are seeking an investment property. This is a stylish, luxurious and dynamic city, and it is growing at an impressive rate. Those who purchase a property in the area tend to do so with the purpose of making money, and so you will rarely see British buyers purchasing here as a lifestyle choice. A lot of people also purchase properties in one of the commuter towns, as Istanbul is now a city of cities. This includes the likes of Esenyurt, Bahcesehir, and Beylikduzu. These commuter towns appeal to a lot of investors because property prices are lower; and demand is high, as a lot of professionals prefer to rent in one of these towns.
When buying in Istanbul, it is important to seek expert advice, as there are a lot of properties to choose from and prices differ extensively. In the centre, for example, districts that are relatively expensive include Galata, Beyoglu, and Taksim Square. You could say they are equivalent to London’s Soho, and thus you can expect to spend at least £150,000 for an entry-level apartment.
Buying A Property Abroad: Do Your Research
First and foremost, you need to consider what you want from a property. With so many properties in Istanbul, you should never be forced to compromise on your wants. All options are available, from studio apartments to massive houses, from city centre locations to properties on the outskirts. Have a good think about what you want so that your property search has direction.
Once you have done this, you will need to align yourself with a property dealer that can help you throughout the process. Make sure they have plenty of experience in the area and a good reputation in the industry. Moreover, you should do your homework as well. You should never go into something blind-sighted, no matter how experienced and reputable your estate agent is.
It’s always comforting to conduct your own research as well. This is especially the case if you are buying a property with the purpose of renting it out. You want to be sure that you are going to make a profit so you need to discover how much average rent is in the area. Finally, if you have a tight budget, you may be advised to compromise on location slightly to find a cheaper property. But, be 100 per cent sure the area is going to work for you.