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Planning to View Property in Another Country

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Image by Jenna Carver

I’ve told you how to research properties abroad, now I’ll tell you how I planned to view properties. Looking back on it now, I realise that it was key to finding what I wanted in a single weekend.

I flew out on Friday night, spent 9am to 7pm on Saturday doing viewings and again on Sunday from 9am to 5pm. Two hours after that I was on a flight home, armed with enough information and contacts to make a purchase decision. It was an aggressive schedule that I had to fit around work commitments but I advise to take it easier, for the sake of your own sanity. However you do it, your time will be limited so you need to be really, really organised and that takes planning.

If you have followed my advice about choosing an overseas property you will have a clear idea of what you want. Now pick out the agents and developers from your research spreadsheet that may be able to meet your needs, get in touch and tell them exactly what you are after. Be as specific as possible and show them that you have done your research by including a list of potential properties from their website.

This is a good idea for a number of reasons. First, you help them help you, the more they know about what you want the better they can serve you. Second, by showing you are knowledgeable they will know that they can’t pull the wool over your eyes (by trying to sell you that cold, damp property that has been on their books for over a year). Third, if they can see you have already invested time by doing research they will know you mean business and they will do their best to convert that business into commission by giving you a better deal than their competition.

the best properties are snapped up before they have even been properly advertised

It won’t be long before they’ll get back to you with additional information about the properties you selected and probably about properties you haven’t come across. By the way, the best properties are snapped up before they have even been properly advertised so pay good attention to anything that’s not on their website yet. Add new knowledge from their feedback to your research spreadsheet. I found that agents sent me detailed architect drawings which often allowed me to pin point the exact locations of the properties using the techniques I mentioned while researching properties.

Once you have digested all the responses, order your contacts by how reliable/organised they are and from that you can start organising your time. Give preference to your top properties and contacts, you want to get the important viewings out of the way first so that to you have a chance to fit in a second viewing. In my experience you are shown about three properties by agents and one by developers. Allow 1 hour per viewing, this will give you plenty of time for your contact to drive you to the property, look around and ask questions… and don’t forget to schedule time for lunch!

Add your schedule to the research spreadsheet and make sure you have mobile telephone numbers and addresses for each person you intend to meet, the last thing you want is to miss an appointment because you can’t get in touch. Also start shopping around for flights so that you have an idea when you can fly out and how long you will be there. Finally get back in touch with everyone with tentative dates and times, amending your schedule as necessary. I found that actually all my contacts were very accommodating (why wouldn’t they be?) which is why I was able to organise viewings throughout a weekend. Depending on how many appointments you are juggling it will take you some time to finalise the schedule, it took me about 4 days.

At long last you have reached the final and easiest step: book your flights, transfers and accommodation. You are all set for the viewings.

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How To Research Properties Abroad

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Once you have chosen where your property abroad will be it’s time to get out there for some viewings. Of course this is much more effort than when you do it in the country you live in. I’ll tell you how I was able to pick my property in a weekend by following a series of simple steps.

Step 1 is do your research. The more the better and keep the all the info you collect in a single place that you can refer back to. The good news is that you can do pretty much all of this on your PC. Make sure you’re connected and then get comfortable because it takes time.

Open a new spreadsheet, this is where you will keep all the important info you come across. You need to start by compiling a list of real estate agencies and developers that deal with your chosen area. The very least you need is websites and contact information. Next you need to find out what the terms for each of these are, summarise them and put them in the spreadsheet as well.

I found that terms vary a lot. Sometimes the buyer is charged a fee, sometimes it’s the seller and sometimes it’s split between the two. Also the kind of service varied, some agencies simply introduced you to the seller, others offered a full hand holding service to help you through the whole sale process. All of this is worth knowing because it will help you set rules for your purchase decision. Consider the scenario where you choose a property that is listed with more than one agency in which case the terms will be all that tells the two deals apart.

You however do want to go direct because you’ll get a better price

Now it’s a case of browsing through the agency websites and making note of potential properties. Remember when you choose an overseas property to use common sense so that you avoid the wrong kind. By the way, have you noticed that quite often agencies don’t give you the exact map location for the properties? That’s when developers sell directly to the public, agencies don’t want you to go direct because they won’t get any commission. You however do want to go direct because you’ll get a better price, so put in extra effort to find out exactly where the properties are. Here are two ways that I did it.

  1. I studied the floor plans and found the names of neighbouring streets, then I used google maps to pin point the exact location.
  2. Where I was looking the buildings all have names like Sea View. So I searched for the building name in the town I had chosen. Usually I ended up on the developer’s own website where I could find info about direct sales.

Don’t forget to put all the information you come across in your spreadsheet because you will need to refer to it regularly and print it out for when you go for viewings. All that done move on to step 2: plan your property viewing visit.

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How To Choose A Property Overseas

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Photo by kabatology

It’s like this, when you buy a property overseas it’s a big deal. It’s a commitment that costs a lot of money, that takes a lot of time and that takes a lot of admin. You have to get it right. I know because I have done it and I’m going to tell you what I learned along the way.

It is vital that you think very carefully what you want the property for. This is important because your reason for owning the property will determine the type and location of the property. Here are a couple of scenarios that illustrate what I mean.

Scenario 1 is that you plan to buy an overseas property as an investment. Your main motivation is to make as much money as possible and you’d rather be renting it out than using it yourself. There are two financial aspects to an investment property, the capital gain (that’s profit you make by selling it at a higher price than you paid for it) and the rental income. You need to land a deal that is cheap when you buy it, expensive when you sell it and is making money for you the whole time you own it.

The countries where you can expect to cash in the greatest capital gain are those that have an emerging economy. That’s because house prices will always rise when an economy becomes more stable. Bulgaria is a perfect example, it’s a country that was very poor and is pulling itself out of a financial hole, it’s politically stable having recently joined the EU and it has successfully adopted a largely capitalist way of life. So do your research to identify a handful of candidate countries, you will need these tools: a few spare hours and the internet.

Where do people want to rent a property on a long term basis?

Your next step is to identify ideal locations for your investment property. It’s the rental income aspect that will help here because you need to focus on finding conditions that lead to long term renting. I know you can ask for more money with short term rental but it’s also a lot more work and it’s just not worth it. Where do people want to rent a property on a long term basis? The answer is where there are plenty of study or job opportunities because that is where people will want to settle down for at least 3 years. So look for university towns and find out where international companies have or are planning to set up satellite offices. If you find a place that has both these qualities then you have the makings of a winner.

The last step is to work out what kind of property to look for. Actually this is easy because the right kind of property will naturally exist: executive style apartments are available near financial centres, basic family friendly accommodation are available in resort towns, etc. So all you need to do is avoid the wrong kind of property. If you come across a bargain family town house next to a beach then forget it because you’ll never be able to rent it out all year round. That’s why it’s a bargain. Don’t do too much thinking for this step, just use your common sense and you’ll be fine.

OK, now consider scenario 2: you want a place next to the sea to take your young family on holiday. It’s got to be big enough to cook and sleep in, and a stone’s throw from the beach which is where you’ll spend most of your time. In this case your research will focus around things like ease of access (you’ll be flying over a couple of times a year) and a family friendly environment: a party town with nightlife that keeps your kids awake all night isn’t for you.

It’s pretty clear that these two scenario’s will lead to buying very different kind of properties in different locations. When I bought mine, I put quite a bit of thought into my needs and by the time I had finished even I was surprised by the conclusions. My motivation was a combination of the two scenarios I described and of course there were other factors that came into it as well. Think about your motivation, you may have a special interest in the country you plan to buy in like friends and family living there or maybe you can speak the language.

Whatever your reasons the method remains the same, work out your true motivation for buying and then use that to identify the country, location and type of property. Good, the next question is how do you research properties abroad?

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