CHAPTER FOUR: THE MOST VALUABLE TOOLS – GOOD ADVICE AND INFORMATION

Synopsis:

Chapter Four examines the value of good advice and information as tools when buying a property abroad. The chapter looks at the different types of information available, from newspapers and magazines, to organisations and online resources, to property investment shows and exhibitions. Property Agents and the reasons to use them are then considered, including a discussion of what you should expect from an agent, how to select a reputable one and whether to buy through a local or an international agent.

Chapter Four then moves on to discuss the advantages and disadvantages of inspection trips, and how to go about dealing with the people on the ground when inspecting a property. The wisdom of obtaining professional advice is also examined, along with which services are available and advisable to use.

Extracts:

“When considering investing in overseas property, the first place you will start is research. It is recommended that you undertake thorough independent research before you approach an agent to at least get a feel for the area you want to invest in.”

“Despite the usefulness of this form of ‘light’ coverage, there is a gulf between information absorbed passively from light reading and the research that will really help you understand where and how to buy. The fact is that it will take a lot of short articles to be able to deliver the specific, often very local information that will help you to make the optimum investment. You need to source information on the numbers; how prices, taxes and demand are operating; and what market forces are at work.”

“Carry out research in sufficient depth and no matter which country you are interested in, there shouldn’t be anything in the transaction that takes you too much by surprise. But research will only take you so far. Ultimately you will need the support of a professional or more likely professionals. Whilst there is no logical end to research and there is no such thing as too much knowledge when you are considering spending thousands of pounds, there is a limit to the amount of information that you will be able to access as a non-professional and, in most cases, without fluency in the local language. There is also something known as ‘analysis paralysis;’ the condition of having so much data and information that it is impossible to know what to do. At this point, seeking out, and listening to, good independent advice is essential.”

“The role of an agent is to bring buyers and sellers together. They therefore put a great deal of effort into attracting buyers and this includes offering a wide range of services from research to after-sales care; all of which are of significant value to investors. Technically speaking, when the seller of a property pays the agent’s fees, the seller is actually the customer. However, it is impossible for an agent to make money and survive without buyers, which means that they should be very keen to turn you into a loyal customer.”

“The key to successful international agency is the ability to identify and source the best properties. Good properties sell themselves and it is far more financially rewarding for an agent to invest his effort into analysing markets and sourcing good properties than employing a hard core sales team. This may seem like a sidetrack but it is a critical point. The research teams of good agents will have put in more resource, time, money, effort and expertise into locating the best investment properties than any lone investor could ever do.”

“…inspection trips are arranged to encourage people to buy. Companies will arrange flights and accommodation at rock bottom or subsidised prices and arrange for you to be met by a salesman or local representative based in the country you are interested in; you will then be taken on a tour of properties that fit your criteria.”