Overseas Property - Know why you're buying

If your reasons are investment, then this is primarily a business decision and should be approached as such, do your own research based on three simple rules;

If your reasons are investment:

1. Equity growth, ultimately driven by supply and demand, research the infrastructure investment, new airports, roads, amenities planned. It’s these things that fuel economic growth, therefore equity growth. It’s not as simple as cheap houses will always go up in price.

2. Rental potential, use sites like Holiday-rentals.com to access what’s renting and where, lots of choice in a country and region can mean lots of competition and above all stay dispassionate and remember how you like to spend your time maybe not what the mass market wants.

3. Saleability, realising your investment will mean selling on at some point, of course it depends on time-scale but in areas where there is an “industry” of new build means you’ll be competing with a constant flow of new properties on the market.

If your reasons are permanent living:

1. Infrastructure, over the long term quality of life is heavily influenced by infrastructure, e.g. roads, transport, hospitals, schools etc. Living up a goat track miles from anywhere and anyone may sound idyllic, but does has it disadvantages, take the time to write down the things you take for granted and keep them in mind when looking for a home overseas.

2. Culture, make sure the local culture suites you, countries where English is spoken widely is a big help to settling in, of course you should/will make the effort to learn the local language, start as soon as you know where you want to go.

3. Cost of Living, is especially important if you are considering retiring, make sure you know how much everyday bills and living costs come to.

If your reasons are for a Holiday Home:

1. Convenience, getting to it easily, quickly and cheaply will maximise the time you can spend enjoying it, check out travel costs, flight times and airports, also take into account distance from the airport the other end.

2. Enjoying it, again this may sound all to obvious, never assume that just because there’s loads of restaurants (or golf or whatever) nearby that they are any good. Try before you buy.

3. Neighbours, no one can choose there neighbours but try to get a feel for whose around you, a great local social circle adds immensely to enjoying it.

Defining your reasons for buying an overseas property will help you understand your reasons for buying in a different light, and help you narrow down what it is that drives your purchase decision. Reprinted from Overseas Property Centres.