Top 5 Considerations for New Investors Seeking To Buy Overseas Property

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Over the years, real estate has been pushed as a better investment to stock. With so many differences as wide as the fact that real estate is a solid, physical good while stock isn't, it's hard to see the similarities between both types of investments. An investment in real estate is similar to stocks, in the sense that, there are both negatives and positives, there is an amount of risk involved and there are no guarantees. However, comparing real estate and stocks over many decades, real estate has performed better in generating consistent wealth and long term appreciation for millions of people. But as mentioned earlier, there are no guarantees. Here are five important factors new investors should consider when buying a home abroad.

Factors To Consider When Buying A Home Abroad

1. Availability of good real estate agents. Hiring a good real estate agent is the single most important thing you'll do as a foreign property buyer. Hence you need to verify that these agents can deliver excellent service. This service will usually include post-purchase assistance. Your real estate agent should be able to help with service connections, home improvements and other requirements after the sale. A good real estate agent will also provide practical help and support. So ask questions and verify what your agent can help you with to ensure smooth purchase process.

2. Insurance. Few things done right will save you the hassles when buying property abroad. One of those things is getting coverage. This is particularly true of vacation home owners who might have to leave the property in someone else's care and investors dealing with tenants. Building insurance is a must for foreign property owners in some countries e.g. South Africa. But don't stop there! Get insurance for the contents of your home. While seeking insurance cover, check around. If you can find an insurance company with base in your home country, then go for it. If not, then settle for local insurers.

3. Property improvement. It's a given that you might not like some of the props and arrangement of your new overseas property. So, many new investors go along with renovation ideas and plans. However, home improvements can eat up your savings. Hence, before buying any overseas property, get a reputable appraiser. Don't expect to meet the property in tip-top shape. But if you'll be spending too much on repairs and renovations, then it's a bad deal.

4. Security. How secure is your new property? If there have been record of burglaries in the house, then having a big padlock might not cut it, you might need to move on. You need to determine how secure the area is. Your real estate agent might not disclose this information, so personal research is necessary.

5. Climate. You don't want to buy in an area prone to floods. Regions of extreme hotness or coldness are also out of the question. Look beyond how cheap the property is and get a house in an area you'd be able to 'survive' in.

 

These are just some basic factors you already know you should consider. But it's easy to take them for granted.

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20 Highly Effective Real Estate Advertising Slogans to Get Better Results

  • 14, September 2023

A memorable real estate slogan can keep you top on the minds of prospects. Your slogan defines your business, forms an element of all your marketing materials and can be what people associate with you. For Scott Geller, a RE/MAX realtor in Jamison, Pa, with the slogan "Scott Geller, the home seller",  some people probably think his slogan is his real full name. The name and occupation awareness brought him so much business that after a while, he didn't need to advertise to the general public, he had enough repeat customers and referrals.

 

A clever, memorable slogan forms part of your identity. While a good slogan can transform your business; a bad one can harm your business and reputation. Hence you should put more effort into developing the right slogan for your real estate business. Here are a few things good real estate slogans can do for your business.

 

1. Help you appeal to customer emotions

2. Highlights your customer service or care.

3. Reflects your business's personality and character.

4. It is memorable; stays long in the mind of prospects.

Let's look at twenty great real estate slogans and some reasons why they are effective.

 

20 EFFECTIVE REAL ESTATE SLOGANS

 

One important thing slogans and taglines do is helping to distinguish you from the competition. According to Dictionary.com, a slogan is a distinctive cry that separates you from everything else. So, the most important thing you want to maintain is the individuality of your slogan. Here are 20 real estate slogans that work. You can put your creative gear in motion and use these examples to craft something effective for your real estate business.

 

1. Sell for More. Buy for less.

2. A Track record that speaks for itself.

3. The Realtor for You.

4. Turning Dreams into Reality

5. Doing Everything but the packing

6. Your Dream Home awaits.

7. Helping San Diego find where to live.

8. Experts in the local market.

9. Your concern is my priority

10. The agent that works harder after the closing papers are signed.

11. A tradition of (excellence, trust, service).

12. A cut above the rest.

13. Helping New Yorkers move since 1983.

14. I'm never too busy for your referrals.

15. Going above and beyond

16. Beautiful L.A homes

17. Helping clients get more home for less money

18. Beautiful places to live.

19. Helping you close for less.

20. Turning transactions into relationships.

 

What these slogans have in common are that:

1. They focus on the client. Your prospects do not care about you or your business. They want to know how you can help them. Having a real estate slogan that clearly states how you can help them gets you points. Keep your slogans around your clients and you'll keep them around longer.

2. Non-generic. Although you should look around and examine trends in your market and incorporate these in your real estate marketing, don't forget to differentiate yourself from the crowd. Is your slogan helping you stand out?

3. Memorable. Effective slogans have a musical memorability around them. Quality slogans are short phrases that are easily remembered.

Having a high quality real estate slogan will keep you in the minds of clients for a long time.

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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.

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5 Additional Costs to Budget For When Buying Property Overseas

  • 08, July 2023

Knowing the extra costs and preparing ahead will help reduce the stress of overseas property investing. Much of this boils down to targeted research. However, here is a brief overview of the extra costs you have to face.

Buying property overseas is both an exciting and a frightening prospect. The most frightening aspect is the cost. Most buyers are delving into relatively uncharted lands personally and knowledge-wise, hence they don't really have a 100% certainty about price. There are extra costs lurking here and there and the chief is foreign taxes. Foreign taxes represent the largest share of extra cost for foreign property buyers. It is important to get the advice of a property specialist on property taxes in your destination country. The key to successfully investing in foreign housing is knowing how to budget for extra costs. Putting money down for these extra costs will put you at ease and the remaining specs will come together smoothly.

Additional Costs To Budget For When Buying property overseas

Extra costs can be overwhelming and have the capacity to snuff the life out of your foreign property venture. Preparing ahead is your best bet. You will need to budget for the cost of travelling back and forth, annual carrying costs and in some cases, stamp duty when the property is eventually sold. And combining these costs can add up to 15% of the home's market value. In many cases, additional costs on foreign property investing will fall into these categories:

1. Mortgage Arrangement fees.

Your bank or private lender will charge a fee for arranging funds for your mortgage. These fees will vary according to your mortgage. In some cases, they will be added to your mortgage. You don't want this (so ask upfront). In which case, you will have to pay interest on that amount.

2. Property Purchase Taxes.

·         VAT (Value Added Tax): Property owners fail to take this into account. But it is mandatory in many countries. The VAT is similar to a sales tax for property owners in the United States or the goods and services tax that Canadian property owners have to pay.

·         Stamp Duty fee (on new properties in some countries) fluctuates relying upon the locale the property is in. It is calculated as the percentage of the price tag which varies but is normally in the range of 0.5% and 1.5% of the price.

·         Miscellaneous: In Spain, for instance, when purchasing a property from a private owner, Transfer Tax (ITP, Impuesto sobre Transmisiones Patrimoniales) is paid rather than VAT. The ITP rate differs from place to place, but is in the range of 6% and 10% of the purchase price. In Quebec, there is something called a welcome tax, It usually costs about 1 to 1.5% of the underlying price tag, although the cost generally depends upon the value of the property.

3. Legal fees.

Legal fees also vary from country to country. It is common for Spanish lawyers to calculate their commission for the purchase of a property based on a percentage of the purchase price of the property (generally this is 1%, subject to a minimum fee of around € 1000).

4. Notary fees and Land Registry.

These rates will also depend on the purchase price and the complexity of legal documentation. You can expect to pay around € 750 for land registration fees and € 1,000 for notary expenses.

5. Maintenance.

Beyond the issue of foreign taxes, homeowners should also plan the cost of hiring a property manager to oversee the maintenance problems and concerns of renters, especially if they plan to rent the property year-round.

By investigating all the costs associated with foreign owned property, potential buyers can focus on enjoying their home abroad without having an unexpected blow to their pockets. If a buyer does their research and saves upfront, they can eliminate stress and prevent extra costs from adding up.

 

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