Who wouldn’t want the idea of owning a property abroad, especially in economies that are more stable and more profitable? Some of the mistakes we will discuss are common to buying local or foreign but keep one thing in mind: it is far easier to sort out any predicament when buying locally, when you know the laws, culture, and have the right connections. Buying a property abroad can be fraught with complications unless you pay attention to some of the factors as pointed out below.

1. Procrastination

Waiting too long will result in you having lost out on the perfect opportunity. Markets and economies change and sometimes the potential for finding the right property investment will not return for a very long time…if ever! Your best bet is to get an experienced and accredited real estate company on your side that will not only present you with the right properties, but also do so at the right time!

2. Improper planning

Always have a clearly planned investment strategy. Just buying a property because it seems like a good deal may not be the wisest decision. Stick to your long-term plan, the numbers and what you have in mind as the eventual outcome of your purchase, whether it is for investment or leisure.

3. Not engaging the services of a professional

Contact an experienced, trusted, and reliable real estate company and you will be assured of the best informed, qualified and experienced agents working on your behalf. Not only will a particular agent be at your service, but also their backup services of compliance officers, legal firms, notaries, and others. When buying property abroad, no-one is advised to go it alone.

4. Thinking you can make a quick buck

You may be looking at purchasing a property that looks like a good deal and then be of the persuasion that you can sell it on for a profit in a short space of time. Remember, all things property is relative and there is a reason a deal can look too good to be true. Investing in property is a long-term commitment. The average time you need to make before you look at making a real profit on a property is five years. This will also depend on whether what you bought at the time was a sound buy.

5. Not getting a team together to work for you

Purchasing property does not only involve the buyer and seller. There are architects, notaries, government departments, banks, inspectors, valuers, estate agents and others involved in the whole process. Unless you are willing to do all the legwork yourself, your best bet will be to get a trusted real estate agency to arrange all of this for you. They deal with all entities daily and have good personal relationships with the best people in the business.

6. Overpaying

Always negotiate the best offer that you can on a property and never overpay just because you are eager to own the property. Also, never get pressured into paying more than what you can afford as this may leave you cash-strapped when you may just need some funds to sort out an unforeseen problem.

7. Getting emotionally involved with a property

Never ever fall in love with a property before you own it, as this will cloud your judgement. There will be enough time for “romancing the stone” once you have made the best and wisest financial decisions with the aid of your team and you are on a winning path. Do your groundwork, do the research, crunch the numbers…. all in the cold light of day.

8. Getting trapped in a deal

Wise investors always have a backup plan or an exit strategy ready for the worst-case scenario. If you do not have one, don’t let it deter you from getting into the property market. Just ensure that when you buy, possible losses will be kept to a minimum and if something goes wrong, it will be at no risk to your current financial situation. A simple example is for instance when you are going to be looking at securing finance for purchasing a property. Make it one of the escape clauses in case you get turned down by the bank or lending institution. No-one wants to face the legal nightmare of having signed an offer and then getting turned down by the lender of the home loan, as you will be held liable.   

9. Choosing a property in a location or sold under conditions that’s unfamiliar to you

Homes are cheap for a reason in some locations. Find out about this by speaking to your estate agent first before you get carried away with a deal that is too good to be true. It’s not only the location that could be a complex matter; there could be other factors such as ground rent, emphyteusis, structural problems, illegal additions and more. All of these will take financial expenditure to settle or clear up.

10. Trying to save money by cutting corners

Most people think agents are an unnecessary expense but engaging the services of a real estate professional in an overseas property purchase can actually save you money in the long run. Not only can they run around on your behalf when you are absent from the country, they can manage your property, look after maintenance and bills, arrange necessary inspections, find you good tenants and best of all, they are up to speed with the latest property laws and legislation whereas you as an overseas property owner will not be.