Top tips for buying property overseas
It’s fast approaching that time of year when the evenings get shorter and the temperature begins to drop.
With that in mind, we cast our eyes back to the summer sun and properties that are available to buy overseas.
You can view a selection of what is currently available on site here.
Who better to speak to then; than Gavan Russell, director with Locations Estate Agency.
What areas are proving popular with people when they are searching property abroad?
Spain and Portugal are seeing high levels of buying activity from many nationalities, including Irish, Scandinavian, British, French, and Chinese.
The coastal areas of the Algarve, Murcia, Costa del Sol, are some of the areas with highest demand.
Has the overseas property market picked up?
Yes, the market picked up significantly since 2015. Buyer activity had been very low from 2008 – 2014. Many buyers have always dreamed of having a holiday home abroad but during the recession put their plans on hold. Now these clients are buying properties at prices significantly below what they would have paid if they had purchased in 2007. Prices in popular coastal areas are now rising at circa 5% per annum.
Are people mainly investing in buy-to-let properties?
The majority of buyers are buying for a mixture of lifestyle and investment. In the Murcia region, for example you can buy a 2 bed apartment from 40,000 euro upwards. These properties would have had a price tag of 200k plus back in 2007. Building them would probably cost 130k. So a client will see that they can have a holiday home and also good potential for capital appreciation too.
Do you think Brexit will have much of an impact on the overseas property market?
The Brexit effect probably impacts on the British buyer in the main. Some buyers will have seen their buying power eroded as the currency exchange rates have changed.
What advice would you give to someone who is thinking of searching for a property abroad?
Ensure that you engage a licensed Estate Agent with a strong history in selling in the country you are interested in.
Contact an Agent and establish with them what your buying criteria/wish list is. Budget, Area, Number of bedrooms, Proximity to amenities, beach, golf, city, etc.
Schedule a visit to the area you are considering buying in. Allow 3-4 days to view the area and a selection of properties. If you wish to proceed you will also need to meet with a lawyer in the area. A good Agent can advise on this and also assist you with arranging a mortgage etc. if you wish.
In terms of the process of purchasing abroad – what are the key areas people need to focus on?
Buyers need to establish an appropriate and realistic budget in order to focus their property search. Buying costs vary from country to country and should be factored into your budget. Engage good professional advisors; Estate Agent, Lawyers, Mortgage Brokers.
So… There you have it; from an industry expert.
To view a list of properties available from Locations Estate Agency on Daft.ie, click here.