An investment in foreign real estate can pay off in the long run. Of course, at the same time, an investor will face unique problems when he or she lives overseas. However, with these five tips, a speculator can have a profitable experience when buying a second house in another country.
This is often difficult when a person does not have a perfect credit score. Banks are usually hesitant to loan money for international transactions. To get the needed funds, an investor should approach a bank with international offices as this allows a person to work with a local who can get the potential buyer the loan he or she needs.
Ideally, an absent homeowner should hire local people to take care of the house. When paying people to clean the yard and watch out for trouble, a homeowner will have plenty of peace of mind. Since this is not a big investment, one should not fear to spend a little money to protect his or her property.
A potential buyer must know the local laws. According to Leverage European Real Estate, while most civilized countries offer investors plenty of protection, it is still wise to verify local laws. When one does not do this, they may find themselves in a serious situation as some countries do not protect individual property rights.
Now, when living in the area, many do not worry about security issues or safety. However, when owning a house abroad, an investor should try to install multiple levels of security on the property. With gates, security cameras and a security system, the homeowner will not have to worry about criminals or thugs breaking into the house and making a mess.
When buying a house overseas, many want to live in the house part of the year. Before signing the paperwork and moving into the house, a buyer should understand the local visa laws. For example, in some areas, a homeowner who is not a resident will not enjoy any special benefits.
On the other hand, some countries, in a bid to find real estate buyers, give people the chance to apply for long-term visas. Remember, there is no point in buying a house if a person cannot experience in the area for more than three months at a time.
With these five tips, an investor can get the most out of his or her foreign real estate investment.
Cheatsheet for Playa del Carmen Home Buyers
There is a trend started with a band for Playa del Carmen real estate. Demand is up and so are the prices. Mexico’s economy is showing growth even while it has become even more attractive for foreign expats. Playa del Carmen property market is poised for another round of spur.
The U.S.A. is showing signs of revival with real estate and stock markets doing really good. All this means renewed investor confidence and more money in baby boomers’ pockets.
If you are sitting on the fence and still undecided on when to enter the real estate market, then let me tell you one thing. The time is NOW!
Yes, the prices are up, inventory is getting limited and it’s a seller’s market in Playa del Carmen, but you can land up a great home and deal if you follow some tips which I have gathered from my years of experience in the real estate industry.
1) Check your creditworthiness: Most of the home buyers intend to take the loan. Before even searching your home, check your credit report for errors. Fixing mistakes in your credit report can take a lot of time. If your credit worthiness is not good then pay off bills and try to get a credit score of 700 or above. This will get you a better interest rate on your loan.
2) Get preapproved for a mortgage: Get preapproved for a loan before looking around for houses. This way you will know their budget and will be better focused on their search. This step can save you a lot of time and effort.
3) Find a trustworthy and knowledgeable agent: In a foreign country such as Mexico which has different culture, language and laws regarding real estate, the biggest is not to have a real estate agent in your team. A local real estate agent will have more knowledge about every aspect of the destination. An agent is well versed with the real estate laws and other legal processes. Leave to professionals who have expertise in their job. Make efforts to get a real estate agent you can trust. Your friends and colleagues who have bought properties in Mexico can be of great help in such cases.
4) Decide where neighborhood: Every buyer has a different set of preferences. A buyer with a family and kids will prefer a neighborhood with a school, playgrounds and not too many bars and discotheques. Baby boomers and retirees would want healthcare facilities in the immediate neighborhood. Prices vary a great deal on the neighborhood. Your neighborhood selection will also help your agent in finding the home suitable to you.
5) Consider your choices: the Internet is a wonderful place. Almost all real estate companies now have websites which list the properties according to price, neighborhood, bedrooms, bathrooms, and pictures. You can shortlist the properties and consider them carefully.
6) Compare prices: A home is a very big investment. While deciding your home, compare the prices of other similar homes in the neighborhood. Check the selling price of the houses sold recently. This can give you a fair estimate of the price.
7) Inspect carefully: Even if you like a house don’t skip inspecting it thoroughly. A house can have many deficiencies which may become apparent after buying and cost you a bomb. Take professional help or do it yourself if you have a good idea and knowledge.
8) Decide closing costs at the start: Closing costs can creep up and make your purchase very costly. Discuss closing costs at the beginning to avoid any problems later on.
9) Make your offer: Once you have decided which house you are going to buy, discuss your offer with your agent. Only after that make an offer and negotiate with the seller to get the best deal.