4 Questions You Need To Ask Before Buying Luxury Real Estate Abroad

20230526051736_647040f0a8443.webp

Driven by affluence and a thriving tourism and travel industry, increasing number of people are looking overseas. According to a Knight Frank survey, between 1993 and 2003, overseas home ownership by British households rose by 95%. While the rewards of buying foreign luxury property can be great, the risks cannot be ignored. So, before you buy a luxury property Jim Gillespie, president and chief executive of Parsippany, a New Jersey based Coldwell Banker real estate firm advises that you should know the place in more than a passing fashion. "Take several trips to the area and rent a house instead of staying in a resort", he advises.

For majority of British who have invested in Europe's luxury properties a decade ago, it turns out they had made a wise move since the euro has increased in value. But currency does not always increase in value. Currencies can take a nose-dive, taking the value of properties with them; political ownership laws can change and the buying process can seem very complicated. Hence, more research is required for people who have set their sights on luxury property abroad. Impulse decisions in these cases can be disastrous. So whether you're buying overseas luxury real estate to live in, diversify your investment or generate rental income, here are some important questions to ask.

Questions to ask when buying luxury real estate abroad

1. How much risk can I take? Putting money on a new luxury property overseas is risky. You alone know your tolerance for risk, your motivation to buy and your preferences. You might have researched the location and the house and known what needs to be known. But you should also look inward to determine your level of readiness. The decision to buy or not buy that luxury real estate might just be dependent on your gut feeling.

2. Why am I buying? The answer to this question usually determines your other considerations. If you're buying for personal use in retirement, you definitely have different priorities. One such thing might be waking up to a view of the sea from your bedroom window. An investor wouldn't care less about the views. If you're looking for rental profit, your priority would likely be price.

3. What's my budget? Now let's talk about price. The most practical advice you can get when buying real estate overseas is: be clear on how much you want to spend and don't consider properties outside your price point. Or you may, if you feel it won't really hurt your pocket. Having a budget and sticking to it, you won't waste time meandering aimlessly.

4. How far is my property to amenities? You don't want to drive long distances to shops, medical centers and eateries. Millennials might also need to consider the nightlife. Families will need to consider proximity to schools and the grade of schools around. You need to familiarize with locals and get as much information about the area and the city. Don't neglect to look at transport and traffic patterns. You might think it's the norm to have good transport. You will be surprised to find that some areas might be hard to access because of bad roads.

Everyone likes the idea of living in their own overseas luxury real estate. This would probably give a great retirement. But before you take the plunge, make sure you're ready.

Previous Post

Take Heed of These 5 Things When Buying Property in France as a Foreigner

Next Post

Who Else Wants to Move Abroad? 5 Tips for Moving Abroad

Related Posts

20230526052219_6470420b58779.webp

How to Successfully Buy Overseas Preconstruction Homes

  • 27, July 2023

This article explores the advantages of buying preconstruction homes overseas, the risks involved and some precautions to take.

The Advantages of Buying Preconstruction Homes

Buying preconstruction homes definitely offer great advantages. First you get to CHOOSE! You don't just settle for any kind of property; you can select design features and specifications. You can actually be involved in the design of your new investment. If you're a property specialist, you will be able to tweak some features and make the home desirable to prospective tenants.

Also, these kinds of properties offer the best deals. You get the lowest deals on pre-construction homes within the first two weeks of the project's launching. Buying a preconstruction home also means that you don't have to worry about repairs and maintenance. You may not have to perform renovation on a new home for the next five years.

Buying Preconstruction Homes Overseas Is Risky

Just as they offer great rewards, buying pre-construction real estate overseas can quickly turn out to be a sour deal. Hence these investments require foresight, research and an ability to think and make deductions like an investor rather than the average buyer. You should be able to determine where the neighborhood is heading in the near future and also make a comparison of project options within your budget constraints.

The biggest risk behind pre-construction houses is that it's a non-liquid investment. For the period in which the property is being built, which can be two to four years, in the case of condo units, you freeze up a large chunk of capital. Although you might have access to visual representations or projections, you're practically buying an invisible property. You've not seen the finishes or the outward finishes.

These properties also require more down-payment requirements than their resale counterparts and you can't touch your cash or pull out should you need your money. So, it is a risky proposition. How do you protect your investment in this case?

Rules To Follow When Buying Preconstruction Homes Overseas

1. Never pay the full price upfront on a pre-construction property. It's standard to pay 30% of the cost during construction and the rest on completion. You should pay the balance when the property is move-in ready and when you can transfer the title to your name.

2. Check the specification. Do not leave this to the developer. The more detail you add to your contract, the more likely you are to get what you expect. Detail all. Start with the exact size of the home, broken down by rooms and hallways, patios, balconies and storage space.

3. Time. Get a clear deadline for the completion and delivery of the property. Most developers do not finish as scheduled. But do not allow the developer to add a 12-month overload period and go scot-free. He should have to pay a fine if he’s unreasonably late.

4. Make sure you are covered if something goes wrong. The contract should give you a decent time frame for snag-checking, and outline what type of builder's warranty you get. Be sure to include a clause that covers what kind of steps you will take if you cannot resolve a problem with the developer, be it mediation with a trade body, arbitration or a lawsuit. In some countries, if the developer doesn’t complete the property, you will get some of your money. That is not the norm, though.

Buying pre-construction property can be very profitable when you’re in the right market. These rules will help put you on the right track for a successful purchase.

By Bebuzee Admin Read More
20230526050514_64703e0a92fb0.webp

Emerging Trends in Real Estate 2023: A Comprehensive Guide

  • 07, January 2024

Are you curious about what the future holds for the real estate industry? With the rapid evolution of technology and shifting market trends, it can be challenging to stay ahead of the game. In this article, we'll dive into the emerging trends in real estate 2023 that are set to shape the industry. From technological advancements to shifting demographics, we'll cover it all.

Introduction

Real estate has always been a dynamic and ever-changing industry, and 2023 is no exception. As we move towards the future, we can expect to see significant changes in the way we buy, sell, and manage properties. The real estate industry is set to undergo a major transformation as emerging trends continue to shape its landscape. In this article, we'll take a deep dive into the most prominent emerging trends in real estate 2023.

The Emergence of Smart Cities

One of the most significant emerging trends in real estate 2023 is the rise of smart cities. As technology continues to evolve, so do our cities. Smart cities are designed to improve the quality of life for their citizens by utilizing technology and data to optimize city services and infrastructure. This includes everything from traffic management to public safety, waste management, and energy consumption. Smart cities are set to transform the real estate industry as they create new opportunities for developers, investors, and property managers.

Benefits of Smart Cities

  • Improved quality of life for citizens
  • Increased sustainability and energy efficiency
  • Improved public safety
  • Enhanced transportation systems

Increased Adoption of Virtual Reality

Another emerging trend in real estate 2023 is the increasing adoption of virtual reality. Virtual reality technology is transforming the way we buy, sell, and market properties. It allows buyers to take virtual tours of homes and properties, which can save time and money. Additionally, virtual reality can help property managers showcase their properties in a more engaging and interactive way.

Benefits of Virtual Reality

  • Saves time and money
  • Enhances property marketing
  • Allows for remote property viewing

The Growth of Co-Living Spaces

As the world becomes more interconnected, we're seeing a rise in co-living spaces. Co-living spaces are shared living environments where individuals or groups of people live together in a communal setting. This type of housing is becoming increasingly popular among young professionals, students, and digital nomads. Co-living spaces are designed to foster a sense of community and provide affordable housing solutions in urban areas.

Benefits of Co-Living Spaces

  • Affordable housing options
  • Sense of community
  • Shared resources and amenities

Shifting Demographics

The demographics of real estate are changing, and this is set to continue in 2023. The aging baby boomer population is downsizing, while millennials are becoming the largest group of homebuyers. This shift in demographics is creating new opportunities for real estate developers and investors.

Impact of Shifting Demographics

  • Increased demand for affordable housing
  • Demand for urban, walkable communities
  • New opportunities for real estate investors

Sustainability and Green Buildings

As the world becomes more environmentally conscious, the demand for sustainable and green buildings is on the rise. Green buildings are designed to minimize their impact on the environment, reduce energy consumption, and provide a healthier living environment for occupants. In 2023, we can expect to see an increased focus on sustainable real estate development.

Benefits of Green Buildings

  • Reduced energy consumption
  • Healthier living environments
  • Lower operating costs
By Bebuzee Admin Read More
20230526051644_647040bcbea7d.webp

Who Else Wants to Move Abroad? 5 Tips for Moving Abroad

  • 28, August 2023

Follow my blog with Bloglovin

 

Moving broad for work or fun is both exciting and frightening, here are some things you should know

An ancient quote says, 'those who travel across the seas only change their skies, but not their souls", nowadays the opposite is true. Studies show that people who live abroad find it easier to engage with other cultures. Moving abroad gives you more perspective on life. But it's not easy to take the first step. The thought of leaving your family and friends can be distressing coupled with the fact that you may not know anybody in the new country. However, it's an opportunity to leave your comfort zone and explore different cultures and issues you haven't seen before.

But there are challenges you'll encounter. Paperwork can be exhausting; The stress of trying to blend into a new environment, especially when you're not fluent in their language; The guilt that comes with leaving your family and friends, which they may not initially understand. But facts prove that the distance could actually strengthen your relationship. So if you're tired of the same old routine and want some more adventure in your life, you'll find that you can master the skill of dealing with the challenges that come with living in a foreign city. Whether you're a millennial moving to another country for work or a retiree just seeking adventure, these tips will help make the move as painless as possible.

Tips For Moving Abroad

1. Make some research. You already know this is important. It's a no-brainer. Know a bit about the political climate of the country, the economic climate, geography and important public figures. Also learn something of the culture, history and staple foods.

2. You don't really need much stuff. Unless you're running away from your home country, never to return, you'll find that excess luggage is just what it's called; excess luggage. It's a given that there will be stores and large shopping outlets in the country you're moving to. Also leaving back the excess stuff might be a way to dispose of materialism and reprioritize what's important in your life. However, never forget to take the important stuff. Don't forget to take your favorite 'Abercrombie' shirt or else your mind might not leave home.

3. Don't expect to settle in at once. It might take at least three months before you fully integrate with the culture of a particular place. You might find it hard to make friends during this time. So, don't rush and don't feel like you've to immerse completely while trying to socialize but stretching your limits of comfortability. During this time, you can observe. Also, maybe, get some interesting 'alone' activities to keep it fun.

4. Experience new things. Travelling abroad and not trying new foods, people and customs is like going to school and not learning anything. Don't be afraid to experience new things. Also, don't limit yourself to the big cities. If you travel to Spain, don't spend all your time in Madrid. Check out the smaller town, you'll learn and experience much more.

5. Make local friends. As a new property investor abroad, your local friends will be able to assist you a lot. They'll give you practical information and might even put in some legwork for you. Generally, you're not moving abroad to hang out with fellas from your home country. Therefore, mingle with the locals.

 

 

 

By Bebuzee Admin Read More