With sterling struggling on occasions against the US dollar and other currencies affected by often fast-moving fluctuations in exchange rates, having someone in your corner with the expertise to guide you through an investment property abroad is essential. Foreign investment, particularly in property, can still be a wise move, yet we know property development investment abroad involves more than finding the right mortgage.
But when you’re looking to find assistance, there are a wealth of options open to you. So how do you know who to choose and what you need to consider? Here, Enness Global offers our advice on things you should know when investing in property abroad and safeguarding your investments.
Foreign exchange (FX)
It is highly likely that you will be buying a property in a currency other than your home currency for any property purchase abroad and will need to borrow in that foreign currency. Finding the best conversions rates can be a minefield and getting it wrong can cost you dearly. It’s essential to be FX savvy before investing and take on expert help that can help you identify the best lenders and conversion rates before harm is done.
Know local laws
To ensure you’re not stung, it’s essential to know local laws and enlist the right legal advice. Making a decision without taking quality legal advice before making any big decisions will undoubtedly lead to complications, potentially lengthy and costly delays, and significant legal bills you haven’t budgeted for.
Further to this, you might want to consider the wider EU laws, for example. Since Brexit, there have been many ex-pats who have had to give up their house in the sun because they weren’t aware that residency rules had changed, following the UK’s exit from the EU. Consider too, whether you want to purchase a buy to let or want to use the property for yourself, as the laws applicable to you might be different in each case.
The right broker
It’s worth looking for brokers that offer a transparent service that keeps you informed at every step, especially important when foreign investment is involved. When they let you down, don’t have the skills or aren’t putting in the time in your situation needs, this can complicate matters and lead to frustration. Read reviews and have a chat with prospective brokers to get an idea as to whether they’re likely to live up to their claims.
If they dodge questions, don’t have many successful references or reviews and seem reluctant to provide any solid evidence they can do what they say, it might be best to walk away and find someone else.
Going alone to navigate the foreign property market is tough, and you certainly, without experienced help, leave yourself open to being taken advantage of by local developers. However, much can be learned by visiting the area you’re considering buying in, and learning on the ground what benefits there are to the property you’re considering.