Landlords 'should be careful' when investing overseas
by Sarah Ashcroft
Investing in overseas property is becoming an increasingly popular way for landlords to make money, but those with little experience in this area should be cautious.
This is according to Paul Collins, editor at property website BuyAssociation, who urged Britons to "always be careful" when expanding their property portfolios
across Europe - as regulations may be different in foreign countries.
He noted that property owners need to ensure that they have proper legal representation when purchasing overseas, while making sure contracts for both commercial and residential buildings are checked thoroughly.
The expert warned members of the public not to sign anything in a language they do not understand without a translation, as this could potentially put any deals at risk.
His comments were made after Kyero's House Price Index for the third quarter of 2012 revealed that Spanish property prices have fallen by 8.5 per cent during the last 12 months from an average of €267,000 (£214,000) to €244,000 (£196,000).
The company suggested that strong local economies in nations within a reasonable flight-time to the struggling Iberian nation could have impacted interest in this area, as in-country investments continue to produce modest gains.
However, while the lower prices may encourage many prospective landlords to engage with foreign markets, it is still vital that landlords take all the necessary precautions to protect themselves and their investment.
Mr Collins said that taking time to check through small print and hiring a translator has become more important in the current economic climate, as many people can be persuaded to cut corners when they would not usually.
The expert said that legal checks should also be carried out above board - as it is more likely for things to go wrong during the current financial struggle.
He added: "It is still quite rare to see problems with overseas property buyers, but it is immensely important that people make sure they get proper legal representation and carry out all of the checks that they need to."
- Manage your buy-to-let portfolio with Property Portfolio Software: helps landlords track rental arrears, increase cash flow, pinpoint poor performing properties and much, much more...
Published on: October 11, 2012
Did you like this article? Share it!