Buying a property abroad may seem like an exciting investment and for many reasons, it could be but there are also many pitfalls to purchasing your dream home in a foreign country. Many homeowners look to buy a second property abroad because the deals seem dazzling. This is further boosted by the promises of massive annual gains.
While most people choose to buy a property abroad to be used as a holiday home others chose to acquire a property abroad to be used as a retirement home. Most, however, have bought property abroad as a pure investment lured in by promises from the developer of large annual returns.
Cons of buying a villa or apartment abroad
There are a number of property scams doing the rounds. Make sure that the property you want to buy as well as the sellers are legitimate. Be careful of deals which seem too good to be true and those which require a large deposit upfront.
The foreign property market is for the best part, unregulated. This means that there is no governing authority which you can lay complaints with should your investment go belly up or the promises that were made fall through. Fighting to get your money back could be a long and arduous process which will often cost much more than the value of the property.
For many investors, the prospect of instant results is an alluring one. Many developers promise instant returns on properties bought off-plan. While this might seem very lucrative, there are a large number of problems which can be incurred. Once such problem is that the property you have just spent a small fortune on may never actually be built. This will most like happen if the developer runs out of money.
Pros of buying a villa or apartment abroad
Huge earning potential
If you’ve managed to secure a bargain property legitimately then you actually do have a good chance that it could live up to its promised earning potential. Many homeowners who have acquired cheap properties abroad have seen great returns on their investments and have made the properties work for them earning a nice little sideline income.
New development, new prospects
While many property investors are choosing to buy in old favorite areas, there are a number of new developments in countries such as France and Spain which offer wonderful views and top class living. One of these is Javea on the Costa Blanca. See www.javea.properties for more details. Many of these developments are located in new territories which allow for less congestion and more scenic views. Some of these properties also have standard agreements with tenants for five years, which means you will have a return on your investment from the first day.
A little piece of heaven
If it all works out, you could have yourself a little piece of heaven in which you can retire or use as a holiday home. In addition, you could rent the property out to other holidaymakers ensuring that your property is used year-round.