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.

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

Buying a home abroad is similar to marrying a foreign lady. It's rare to meet a foreign lady in the bar and get married the next day. It requires some investment of time and effort from the first meet. It might take weeks, months or years to know each other first. Then if she says yes, you tie the knot. Hopefully, you're not going to spend years before you make the 'buy decision, though. That'd defeat the purpose of buying a home abroad. By, using the 'marriage' analogy, buying a home abroad requires knowledge; of the area, country/local rules and the property itself. I hope the analogy sounds pleasant. Marriage is actually more complex.

On how to buy a home abroad, you want to ask some critical questions to determine if the person at the other end of the table isn't just telling outright lies; trying to elope with your cash. This is because sadly, there are few or no safeguards in place to protect you. You want to find an answer to these questions:

* Is the property a good fit for me or my investing strategy?

* What are the zoning laws that apply?

* How trustworthy is the seller?

Once you find answers to these questions, you should follow the below steps to simplify your overseas property buying.

HOW TO BUY A HOME ABROAD

This is just a summary of steps you have to take when you want to buy a home abroad. But, it's important to know that making an overseas property investment might not be a systematic process, there would usually be hoops and turns. A crucial advice for new overseas property investors: don't be in haste or as the saying goes, you might have the opportunity to repent at leisure.

1. Browse properties in a good location. You should check properties online that match your criteria. But don't just browse properties online. Go check out the property physically. Although technology makes it easy to show much of a property online, it is not to be compared to physical examination. If you'll be buying property without physically seeing it, get an agent or any neutral person to take as many photos as possible of the property from many angles so you'll be convinced it'll make a good investment

2. Research the market. While researching the market, make sure you find out about the possibility of getting good ROI on your investment. Developers might pressure you to make a deposit on a new property while you are on visit; promising you quick ROI. You should always wait until you have returned home and had a chance to think about it before deciding.

3. Legal checks. Legal checks and processes can be a major cause of headache when buying property abroad. The process of buying property in many countries follows the same pattern as that of Britain. There is a title which states who owns what and there are contracts to be filled, specifying the owner's commitment to sell the property and the buyer's commitment to buy it. However, legal systems and lingo varies throughout the world and the people involved in the process also vary. It is important that you find out these legal nuances and deliberate on your ability to meet them.

4. Financing. How will you fund the purchase of your property? The two most common ways of funding property abroad are mortgages and taking out a HELOC or home equity loan on your current home. Read this article to find out more on financing foreign property investments (3 Ways Top Investors Finance Their Foreign Property Investments).

5. Invest or buy. If you're investing, you need to be more focused on the financials. Buyers of second home, might also consider letting out to holiday tenants. In both cases, the balance between supply and demand needs to be assessed.

Buying a home abroad can be a life transforming experience or a tragic one. Therefore, you need to make rational considerations and not be ignorant.