Buying Foreign Property 5 Effective Ways to Make Your Offer Stand Out

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In a seller's market, like the US, buyers must be prepared to do some ground work and move fast whenever they spot homes that offer what they are looking for. In a competitive market, a buyer with cash doesn't necessarily win these days. 2015 Realtytrac stats say that about a third of property buyers in the US are cash buyers. Cash might still have an advantage over mortgage but below are some more tips to create a winning offer.

Only a few sellers can reject an offer of cash but chances are you're not the only one bringing cash to the table. Hence you need other strategies when making a home offer:

1. Move fast.

Moving fast could help you win when making a home offer in a competitive market. If you’re dealing with a seller who doesn't have much time (who does?) and wants to sell fast, all you need to do is put your best foot forward and follow other steps in these article to seal the deal.

You can also offer to close quickly. A standard closing period is about 30 days. If you can close in three weeks instead, this could convince the seller to accept your offer even over one that offers more money.

2. Get a professional.

A proactive and knowledgeable agent will know what works in that community and will be able to create a winning offer fast.  A good agent will be the strongest weapon in your arsenal when in a competitive market. A knowledgeable agent will guide you through winning strategies in that competitive market that may seem crazy when you try them in a slower market.

3. Be human.

Display personality with your offer. One way to do this is by writing a letter to the seller that tells him the reason why you want to buy. Indicate a subtle feature you like about the house (which other buyers didn't notice). Other sellers will appear impersonal.

4. An earnest deposit

A substantial first deposit makes a major difference. A reasonable first deposit will be about 3% of the value of the house. A seller often takes this offer seriously and can feel positive you are focused on the stand by position this offer.

This may give you a winning edge. Submitting a pre-approval notice with the first deposit puts your offer before others by telling the owner you are serious.

 

 

 

5. Money talks.

Of course, the more money you can offer upfront, the better your chances. If you can afford a 30% or 40% down payment (or more), sellers will be tempted to accept your offer. And, in the long run, it will save you money on a mortgage, shortening the length of your loan and the interest you pay. You can also waive some contingencies, depending on what your agent approves.

These tips can put your offer on top of the pile. However, in a competitive market, beating the competition depends on your creativity. 

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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
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3 Ways Top Investors Finance Their Foreign Property Investments

  • 20, May 2023

What do you do when bank financing is not available in your destination country? This article explores other options to finance your foreign property investment.

You’re not getting the same mortgage deal you’re used to

Bank financing abroad will be different from what you’re used to at home. Here are some ways in which the terms will likely be different:

1. Loan-to value ratios will be around 50 to 75 percent of what you're used to.

2. Terms may be shorter. It's almost impossible to get a 30-year loan when buying abroad.

3. You will be offered adjustable interest rates, rather than fixed.

4. You might be required to get a life insurance to secure your loan for foreign property. This isn't good news if you're already around 60, as banks wouldn't borrow you loans of more than 15-year terms. The reason being that insurance companies, as a rule, wouldn't cover you when you're above 75 years old.

Hence, there is need to check out other financing sources.

Financing tips from experts

Generally, here are some financing tips from foreign property experts:

1. If possible when starting out; start small and pay in cash. If this isn't possible, you can use your current home as collateral, without having to rely on banks or regular mortgages. Depending on the amount of equity in your home, you might get lower rates.

2. Research bank financing terms, requirements and laws in your destination country to decide which financing option would work for you. 

3. Since most of what you know about real estate might be ineffective in your destination country, it would be wise to get a partner or local agent. You'll need someone who can offer useful advice regarding financing and home ownership laws in the country.

4. If you'll be transferring funds denominated in your domestic currency, either to make a down payment, full payment or mortgage payments, don't go through the local bank. Local banks, with their wide dealing spread and limited transaction sizes, offer poor Forex services. Foreign exchange services would offer a better deal. 

 

Options to finance foreign property without using the local bank

Here are three options for foreign property investors who don't want to go through the local bank:

1. Personal loans.

Potential buyers with excellent credit will often fund an overseas purchase with an unsecured personal loan for foreign property. Interest rates can be in the single digits for qualified buyers.

Financing with a personal loan avoids the risks that go with leveraging property with a HELOC or cash refinance. This type of financing is particularly attractive when you are investing in a developing country where mortgage rates are high, and the cost of property ownership is relatively cheap.

2. Seller financing.

Some private sellers might be willing to pay part of the price. The conditions will be whatever you and the owner decides, and an average term is up to five years. In most cases, the longer a bit of property has been on the market, the better conditions you can negotiate. Much like bank funding, don't expect the owner to provide the deed until you've finished paying the loan.

3. Home equity (HELOC).

When cash is not an option, tapping into your home equity is one of the easiest ways to finance a property abroad. If you are investing in a country without a developed banking industry, it can also be the cheapest. Getting a HELOC has the added benefit of making you a cash buyer, which provides leverage when negotiating price.

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

  • 28, August 2023

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.

By Bebuzee Admin Read More