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If you’re hoping for a major drop in the price of property abroad, you could be in for a long wait. That’s the claim made by one overseas property expert, who believes that UK buyers have high expectations that property prices in foreign climes will fall, but are going to be disappointed when they don’t.

“The current credit crunch is giving the UK buying public expectations of dramatic price reductions, but this is a misconception with the overseas high end market,” said Serge Cowan, managing director of Unique Living.

“The world is a big place, the UK market - although important - is not essential, so buyers holding back or expecting major price falls in overseas property hot spots (marketing at £500,000 or above) are going to be disappointed.”

Instead of pinning your hopes on unrealistic aims, Serge suggests that buyers would be wise to look to regions where growth is still strong. “Even though they may lose on the conversion, they gain on the capital growth,” he explains.

One region he highlights as being a good example of an area where there are prices for all budgets, plus steady capital growth and good possibilities for renting is the French Riviera. The Cannes Film Festival and the Monte Carlo Grand Prix alone bring a multitude of wealthy people desperate for accommodation.”

Technorati Tags: real estate, real-estate, real estate news, off plan property, off plan, property investment, real estate investment, overseas property

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With the exchange rates fluctuating, markets changing and scare stories in the press, it’s understandable that you may be wary of property investment abroad. But according to currency brokers HiFX, changing exchange rates needn’t be a negative factor and can be used as a useful negotiation tool to get real estate prices down - if you know how.

1. Use the exchange rate to negotiate hard on your property deals

“Most buyers work to a budget and changes in the Euro/Sterling exchange rate have led to people reviewing what properties they can afford,” says Mark Bodega, from HiFX. “Rather than assuming that because costs have gone up preferred properties are out of reach, buyers should remember that a drop in demand will mean vendors are also feeling the pinch.” This means that buyers are in a good position and can have a go at negotiating property prices.

2. Fix the exchange rate before you pay for your property investment

It’s also worth trying to arrange a forward contract, where you fix the price of the property by fixing the exchange rate. A forward contract means that you buy the currency now and pay for it later.

“We always remind clients that they’d never agree to buy a property in the UK without knowing the final cost. But if you agree to buy an overseas property without fixing the exchange rate at the start, that’s exactly the gamble you’re taking,” says Mark.

3. Get the foreign exchange experts in to help you

If you want to get the best deal on currency exchange for your next property investment, then shop around. High street banks don’t always offer the best deal on foreign exchange, plus there are often extra charges and commission fees to pay, so it’s worth exploring the options available from specialised brokers.

4. Sort out ongoing payments in advance

Don’t forget that if you’re investing in property with the intention of moving abroad, you’re likely to need regular currency transfers. For example you may need currency for making overseas mortgage payments on your property, paying school fees or for pension transfers. By arranging a Regular Payments Abroad Service in advance, the exchange rate can be fixed for up to two years, which may well save you money in the long run.

Technorati Tags: foreign exchange, exchange rates, real estate, real-estate, property investment, real estate investment, overseas property

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If you’re considering buying property in Italy, did you know that you could be in for a favourable tax benefit?

Tax issues aren’t always top priority in prospective buyer’s minds, but this is something that you really must consider if you want to make the best investment choices. Even though you may have found the perfect country in which to buy, do you really want to get clobbered by expensive taxes? For some people, a dream is a dream no matter what, but if money and tax savings are a priority, then thinking through where you’ll buy could and taking care to take benefit from favourable tax regimes could end up saving you a packet.

Take Italy, for example. It’s not a fact widely known, but after five years of owning a property in Italy there’s no longer any Capital Gains Tax. What’s more, there’s no inheritance tax either if the property is left to a close relative such as spouse, or children, so you could be considerably better off in this regard than if you bought your property elsewhere.

“When people look to buy abroad, they very rarely take into consideration such matters as Capital Gains Tax and Inheritance Tax, but they should,” advises Italian property expert, Linda Travella. “It can make an enormous difference to the end value of their investment.”

Italy continues to be a popular place to buy property and has got plenty of options for aspiring holiday home owners. Property prices in the traditionally favourite regions such as Tuscany are high, but there are up-and-coming areas such as Calabria, in the far south of the country, where property is more affordable.

If you’d like to find out more about buying property in Italy, including advice about the financial side of things, then the BuyAssociation website has a podcast on Italy. Make sure to tune in!

Technorati Tags: Italian Property, Italian real estate, real estate, real-estate, property tax, off plan property, off plan, property investment, real estate investment, overseas property

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When you’re buying property overseas it is important to ensure you’re completely clear about what you’re buying and any legal issues involved. This is especially so in countries where you may not speak the language or be fully confident with the legal process.

Hiring a lawyer who speaks your language to help you through the legal minefield is crucial, but it also helps to be keyed up on the issues you may need to discuss with your lawyer and the developer you’re buying off-plan property from. Acquiring a property abroad is a big decision, especially if you’re also planning to move there, so don’t be afraid of speaking out and asking questions to ensure everything is clarified from the start.

So here are some ideas about the key questions that you may need to ask your lawyer and the company you’re buying the property from as you go through the, often taxing, process of making your dream come true and securing your property purchase abroad.

• Is there a building warranty in existence? How long is it for?
• How much deposit do I have to pay and is it non-refundable?
• When does the balance payment have to be made?
• Is it possible to obtain a mortgage for my overseas property purchase?
• What legal and tax costs will I have to pay as part of the property purchase?
• What inheritance, income and capital gains taxes will I have to pay?
• Is the land that my property is built on classed as urbanised or rustic? What are the implications of buying on both urbanised and rustic land?
• What happens if the company I’m buying the property from disappears or goes bankrupt before completion? Is there any insurance against this?
• Do I have to be present for each stage of the legal process and when signing the title deeds on completion?
• What happens if I change my mind before completion?
• Are there any annual maintenance fees to pay?
• Is it possible to make changes to the construction plans, such as specific interior elements or fittings?
• How long will it take for the development to be completed?
• What sort of redress can I seek if the project is delayed?
• When will I be able to move in?

Most of these questions should be asked before you sign on the dotted line and commit to buying the property. If you encounter any reluctance to definite answers from the developers, then use your gut feelings and don’t be afraid to walk away if you have doubts. After all it’s your money on the line.

Also see:

10 Top Tips for Buying Property Abroad

The 4 Essential Questions that Property Investors Should Ask… But Don’t

Technorati Tags: buying property abroad, real estate, real-estate, real estate news, off plan property, off plan, property investment, real estate investment, overseas property

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We all know a lower price to pay is one of the big draws of buying property off-plan, but what if you could get the same type of off-plan development even cheaper - perhaps by as much as around 20 or 30 per cent less?

Buying property by auction has been around for ages. The skill of selling under the hammer has evolved in the UK since the 14th century when regular weekly markets started to be chartered by the monarchy. Today, houses, stately homes, hotels and even whole development projects are up for bidding, but what are the off-plan opportunities and can anyone expect to dive in and get themselves a big bargain by bidding for an off-plan development?

Starting with the basics, the main advantages of property auctions are they are quick and simple, meaning if you have cash and want to spend it quick in an effort to get a fast return, they are a good potential starting point. It is important to remember at most auctions, you will need to have the cash up front - a deposit will probably be required on the day, and you will often have to stump up the rest as little as 30 days after the auction.

In the current UK climate, the rise in property repossessions as a result of the credit squeeze is keeping auction houses very busy. In some auction houses 40 per cent of the properties up for biding are repossessions, compared with a figure of around 20 per cent this time last year.

To find a property auction, all you need do is either call an auctioneers’ firm and ask if they have one coming up, keep your eyes peeled while reading local and national papers, try searching the internet, or call an estate agent and ask if they know of any in the local area. Typical venues include hotels, town halls, civic centres, sports clubs and stadiums.

View, check and refer as normal

Once you register your interest with an auctioneer’s or agent’s office or similar, they will typically send you information about what properties are going to be on sale - often documents or portfolios with pictures, guide prices, information on how to set up a viewing, contracts and data about wiring, plumbing, and so on.

If you are buying off-plan you are likely to get plans of the site, the intended design in detail and history of property ownership, intended construction materials and contractor’s details. As with property that has already been built, you should always view the surrounding area, examine the site carefully, check whether or not it has planning permission from the local authority and get your solicitor to check any contractual details. Essentially do everything you would usually do when buying a conventional off-plan build before you even walk in the door of the auction house.

Off-plan properties at auction at home and abroad

So what kind of off-plan properties exactly can we expect to see out there ready to go under the hammer?

Residential builds are common, perhaps because land acquisition firms have got the planning permission and a builder for the site, but not found anyone willing to take on the build and market it for sale when it’s ready to go. Big projects that require a lot of work, such as factory conversions, are also regular, as are commercial developments like hotels on the look-out for an owner.

Typical examples of sites with planning permission in search of a buyer can be found at propertyauctiozone.com, under searches for site/land. Possible candidates up for bidding soon include a site in Bebington, Cheshire, in the desirable Wirral area. The site extends to around 2945 sq metres and has permission for a residential development of 12 apartments in three two storey units. £400,000 is the guide price here.

Also found on this website is a planned development near Gainsborough, Lincolnshire of two single-storey homes, with a guide price of £150,000. Further north, in Radcliffe, near Manchester, a plot with permission for three self-contained flats will set you back something in the region of £100,000.

Travelling abroad, a development at Cabanas Beach, Portugal, is soon due for completion featuring two or three bedroomed apartments with communal pool and sea views. All are up for auction at direct-auctions.com for a price of around €180,000. Also due to go up for bidding through this auctioneer are two developments at Royal Tavira Beach, Portugal, one due for completion this year, one in 2009. Both are apartments and, one at €163,000 the other at €323,000.

Yet to go fully live is specialist off-plan auction site www.offplanpropertyauction.com,

which promises to be a ‘very cost effective worldwide on-line sales and marketing platform’.

Going, going, gone!

Before you start nodding your head, scratching your nose or waving your little finger, remember once the hammer goes down you are effectively into a contract immediately. You are obliged to pay up just as much as the seller is obliged to sell.

Hopefully though, you would have done your homework beforehand and there will be no need to worry. It goes without saying that all bidders should decide the maximum amount they are ready to pay, or rather, the maximum amount it makes personal sense for them to pay, for each lot before the auction starts. Do not get carried away and do not exceed this amount - you could end up making little or no profit on your investment.

Take along your bank account details, a cheque book, at least two forms of ID and ensure you will be able to put up a deposit of around 10 per cent of the total price of what you want to buy. Sellers may well expect to see the rest within a month of the auction date too.

When you walk in you may have to register before being able to bid. Ask around first or you may scratch or nod to no effect.

Bid with brains and bottle and you may just land yourself an off-plan bargain. Good luck!

Technorati Tags: property auction, real estate, real-estate, off plan property, off plan, property investment, real estate investment, overseas property

There’s a growing interiors trend amongst buy-to-letters, developers and property investors - they’re increasingly using specialist companies to obtain furnishing packages and get everything equipped in an instant.

As more people purchase buy-to-let properties or rental holiday homes, and developers need quick ways of staging properties in order to sell them, the trend of using specialist companies is on the rise. Rather than having to source the best prices for furniture, equipment, soft furnishings and white goods, you can approach a company who’ll sort it all out for you in super quick time.

Outsourcing all your furniture needs cuts down on the amount of time you have to spend on the nitty gritty details and frees up time for other crucial jobs. What’s more, you’re spared the hassle of having to install everything too, as most companies will handle that for you too.

In the world of property investing, when you’re keen to rent out your property as quickly as possible, such services have become a godsend. What’s more, they’re extremely handy too for owners of overseas properties, as it cuts down on the hassle of having to furnish a property when you may be unfamiliar with local traders.

Clare Whitehead, who established Kit-It-Out, one company offering such a service, says, “There are a number of reasons why we are seeing this new market develop. There are new homeowners who want to start afresh with a stylish new look and there are those who are looking to sell or rent out properties and require internal spaces to really stand out from the competition.”

Another company who run a similar service, but specifically limit it to the property industry in the UK, are John Strand. As well as providing design layouts and ideas for your buy-to-let or holiday home, they also manufacture furniture and do the hard work of furnishing your property at the end of the process.

If you’re looking to purely stage your property - kitting it out and demonstrating how it could look - but don’t want to keep the furniture permanently, then you can also consider hiring all you need. Fully Furnished provide a dual service, either selling you furniture or letting you rent it out temporarily. They have professional installers to get it all into place and are fast and efficient. Everything from furniture to electrical equipment can be installed within days.

There are similar services catering for people buying across the world. For example, if you’re buying in the United Arab Emirates, companies such as Dubai Home Furnishing can help you equip your property, or VillaPac caters for furnishing needs in Spain, Portugal, Morocco and Dubai.

Wherever you’re purchasing a buy-to-let or holiday home, if you’re keen to obtain a contemporary or designer look, but don’t want to the hassle of sorting it out or having to pay for the services of a professional designer, using such a service could be the ideal alternative.

Technorati Tags: property decoration, buy-to-let, real estate, real-estate, off plan property, off plan, property investment, real estate investment, overseas property

Buying property in the UK and getting on the first rung of the property ladder has become much more difficult for first time buyers over the last few years. But increasing numbers of would-be home owners have successfully found a way around it, by buying abroad and renting in Britain.

Affectionately known as BARBies (Buy Abroad, Rent in Britain), this breed of buyer has had to think outside of the usual buying strategy in order to get an attempt to buy a first home. As prices in the UK soared, they’ve taken a leap of faith and hedged their bets on property overseas - and in many cases, done very well from it.

BARBies have tended to aim towards the lower priced and often emerging markets, like Bulgaria, Hungary, Romania, Croatia, Cyprus or Cape Verde. In fact, Maria McLaren, from McLaren International Properties says that she’s come across many BARBies who have bought property in Cyprus.

But as well as attracting first time buyers, some property investors keen to make money on buying abroad are also attracted to the BARBie world. Writing in the Telegraph, Zoe Dare Hall recently explored the intricacies of the BARBie buyers and presented some fascinating case studies of actual BARBie buyers. The article is well worth a read, whether you’re looking for property buying inspiration or just want to see what all the BARBie buying fuss is about.

Technorati Tags: property buying tips, buying property abroad, overseas property, real estate, real-estate, off plan property, off plan, property investment, real estate investment

As you are well aware, the housing market in the UK is in a bit of a downturn.

That said, certain real estate properties continue to sell. How do some properties manage to beat the odds and continue to sell well in spite of the current market situation? Well, the main reason is the same old one - location, location, location!

What makes a property desirable location-wise?

Well, that really depends on the buyers, and what their particular needs are at the moment. However, in general, proximity to a downtown centre, transportation, schools, green space, shops, museums, airports and so on are desirable traits. A neighbourhood with a low crime rate is always desirable as well for obvious reasons.

K-Point development sells out in nine months

An example of a property that sold relatively quickly despite the UK housing downturn is Gladedale’s K-Point development in Kennington.

K-Point sold all 28 of its luxury one and two bedroom apartments within nine months - with most of its units bought off plan.

As this property is located just two miles from the centre of London, half a mile from the Kennington Tube Station, 5 minutes from the Embankment, 7 minutes from the West End, 13 minutes from Brixton Academy, and 18 minutes from Canary Wharf, location, without a doubt, played a leading role in the successful sale of these properties.

Sid Griffiths of selling agents, Barnard Marcus, has this to say about Gladedale’s K-Point development: “We were very pleased with the extent of the interest we received in the K-Point development and it comes as no surprise that it has sold out so quickly.”

With its innovative design and contemporary finish, the K-Point development certainly appealed to our market and its position next to Kennington Park offered a unique opportunity to have open green views in what is otherwise an urban central London location, explains Griffiths.

Nevertheless, as you hunt for off plan property to buy or invest in, it is extremely important to keep in mind that properties located in prime areas will indeed continue to sell despite less than ideal real estate market conditions. The extra investment involved in buying a centrally-located property could very well prove more than worth it!

Many people who invest in a second home to use for weekending and vacations soon come to find that the costs of maintaining the home can put a big dent in their budgets. If you are thinking of purchasing a second home and this is a concern for you, take note. You don’t have to let your second home drain your bank account - instead, make it pay for itself. Turning your vacation home into a money-making proposition is not a difficult process, according to Christine Hrib Karpinski, a real estate investor, advisor for other investors and author of the book How to Rent by Owner.

Turn your vacation property into a profitable asset

Ms. Karpinski has some recommendations for people who want to make a profitable asset out of their vacation home. First, the rent you ask for one week’s occupancy should equal your mortgage payment and expenses for one month. Using this math, you can see that you must rent the property 15 or 17 weeks every year to break even and generate income. Second, it is crucial that you advertise your rental on the internet to attract attention from potential renters. Finally, manage the property yourself instead of using the services of professional property management companies; they will eat up a large percentage of your rental payment in management fees.

Any time you do not have guests renting your vacation home, you need to make certain that it is secure. When your tennants leave, check to be certain the doors and windows are locked. Purchase a timer and turn on one or two inside lights when no one is home. You will find additional tips to help you enhance the security of your second home at be-safe.org. And check with your insurance carrier to make certain you have enough coverage. Be a good neighbor and responsible landlord to keep the neighbors on your side.

When’s the best time to buy your vacation home?

FOMC Chairman Ben Bernanke, in a recent speech to the Independent Community Bankers of America, urged government-sponsored enterprises (GSEs) FannieMae and FreddieMac to implement practices to increase the number of loans they support, a move that would make affordable mortgage loans available to more home buyers. Frank Nothaft, vice president and chief economist for FreddieMac, says that mortgage interest rates actually are dropping as a result of economic news that suggests the economy could be slowing.

The silver lining in these remarks? Coupled with the current real estate market, they may indicate that this is an ideal time to purchase that great vacation home you have always wanted. Remember that real estate sells on local markets and national news may not accurately reflect the situation in your area; in some parts of the country, sales are slowing, but prices are still rising. If you hold out expecting that prices will drop further, you may let your best opportunity disappear.

Vacation Property? Look at Florida

Do a bit of homework before you dive in to the investment rental market; you want to purchase vacation rental property that is both affordable and desirable as a vacation spot.

You might find some great opportunities in Florida right now. Regular visitors to the Sunshine State can give you a long list of reasons to own a vacation rental: Florida is warm in the winter; it offers all sorts of attractions, from Disney World to Everglades National Park to the Kennedy Space Center at Cape Canaveral; it has hundreds of miles of beautiful beaches.

There are plenty of pre-construction opportunities available in Orlando and Ft. Lauderdale that might be just what you’re looking for.

Buying a property off plan has become extremely popular over the last five years or so, with more and more investors opting to go this route and enjoy the many benefits it offers. The funny thing is that very few people who were outside of the property investment loop had actually heard of off-plan property purchases before then.

Buying an off-plan property is effectively buying a home on a new development area before it has actually been built. Developers choose this option so they can sell some units beforehand to help finance the project and minimise risk. When buying off-plan, investors will be able to view the plans, ask questions, speak with the relevant people and so on but they will not be able to view the actual property until after they have put pen to paper. Having said that, developers will often have a pilot unit built beforehand to show buyers the quality and finish of the development.

There are many reasons for the increase in off-plan purchases, including the fact that more and more people are beginning to realise the distinct benefits of doing so. The most important benefit is that it an off-plan property can cost you a fraction of the price of buying into a finished development. The idea of saving money on property can be extremely appealing, especially for those individuals who are looking to invest for the future.

However, not all off-plan property developments automatically make good investments. As with any real estate sector, there have been scams in recent years with terrible consequences for some buyers who undoubtedly made the wrong decision.

Still, buying property off-plan need not be risky at all if you do your homework properly. If you take the right steps and precautions when investing in off-plan developments then you can make a sound investment and keep your peace of mind! The following list of dos and don’ts will help you to protect yourself and snap up a bargain all at the same time.

Dos

• Get your own lawyer. It is better to have an independent lawyer on your side when you are making the purchase rather than someone the developer recommends because the likelihood is that they are biased and will serve the developer better than you.
• Investigate the developer that you are considering buying from and look at previous properties and at any pilot units of the development you are interested in. You will obviously not be able to see the one you are purchasing off-plan, but you can get a good idea of what you are buying based on the developer’s past work.
• Make sure that the developer has an insurance policy that covers refunding you your money in the case that the company should go bankrupt before completing the project. If not, find another developer.
• Check out the area and make sure that the investment and profit potential is still there. If an area is over-developed already and/or there are a high number of investors already in the area then you will find that your profit margin will be seriously diminished.
• Double check your contract and make sure that it is legally watertight. The contract should set out everything involved in the purchase, but it has been known that developers have found loopholes and delivered sub-standard properties as a result. Make sure that your lawyer looks through the contract and it serves your wants and needs.
• If possible speak to people who have bought properties from the same developer in the past to find out their experiences. You can either do this on site, or else try and make contact with past buyers through websites and Internet forums.
• Always stay in close contact with your developer throughout the build process so you are always informed and know exactly what is going on throughout.

DON’Ts

• Never buy a property without visiting the area in question and obtaining documents stipulating exactly where your property will be. There have been stories about investors thinking that they are buying one plot of land but are given another when the properties are finished. Protect yourself against such possibilities.
• Do not sign on the dotted line until you are thoroughly happy with your decision and have peace of mind. If there is one single doubt in your head about buying from a specific off plan developer or on a specific development then don’t sign anything until you’re completely happy.
• Never make an investment that you cannot afford. This is perhaps the most important point considering the worldwide credit crunch that is happening at the moment. Make sure any property investment you make is within your reach and that you will be able to pay any mortgages you take out. Fail to do so and you could have more to lose than you may think.
• Make sure you inspect your property well upon completion. There is usually a time period to do so, during which you can register any complaints for the developer to rectify.
• Avoid completing payment for your property until it has been built to your satisfaction. If you have any niggles or alteration requests then chances are the developer will not make those changes for you. If you hold the payment than they most probably will!

Further reading:

The 4 Essential Questions that Property Investors Should Ask… But Don’t