10 things to keep in mind when buying an overseas property
Conducting research, consulting with experts and practising common sense can help guard against shoddy deals and bad developments
Real estate experts agree that there’s no way to eliminate risk entirely. But there are steps you can take to keep yourself safe when investing in property overseas.
1. Use a reputable agent. A reputable agent should carry out due diligence - although they can’t protect you against all the risks
2. Research the developer. If you plan to purchase off plan, check the project developers track record to ensure they completed several large projects in the past. They are more likely to complete a project within budget and on time if they have sufficient experience
3. Look at the volatility of the foreign exchange market. You could end up making less money than you thought once you convert the profit back into your local currency
4. Be careful when buying off-plan. Investigate what recourse you may have if things go wrong, and what exactly the developer has promised to deliver
5. If it sounds too good to be true, it probably is. It’s human nature to get excited by large possible profits and forget about due diligence. Investor Education Centre’s general manager David Kneebone cautions that if you’re going to bed worried about your investment, that in itself could be a sign it’s too risky
