The Pitfalls of Overseas Property Buying
According to the new
Which? guide to Buying Property Abroad - these are the top 10 things that can go wrong when purchasing overseas property.
1. Overstretching your finances - Don't jump on the overseas property bandwagon unless you're sure why you're doing it, and that you can afford it - especially if you're securing it against your UK home.
2. Buying sight unseen - If you buy an overseas property without ever 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 may seem to make the process complicated, but the work they do is vital to protect your best interests - for example, telling you whether the seller has the legal right to sell. Pay extra for one who speaks good English and is qualified in UK and foreign law.
4. Failing to check credentials - Is the seller really the property owner? 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 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 - even to a third party - unless you are sure you want to buy.
6. Choosing on the basis of price - It may 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 all 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 tourist 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 property is dealt with on your death - and avoid the restrictive inheritance rules in many foreign countries - you need to make a will. You may even need to make two: one here and one there
The Pitfalls of Overseas Property Buying 
