How to purchase wisely overseas in the current climate

[Alexis Goldberg]

Despite the fact that the economy is, to say the least, uncertain it seems that demand for overseas property is still healthy. And why shouldn’t it be - there are excellent deals out there. Whether you want a renovation project or a holiday home, it’s now a buyers market and properties can be snatched up at a massive discount.

Both private sellers and developers alike are discounting properties while adding incentives to achieve sales. Around the Mediterranean many developers are slashing prices, throwing in white goods, air conditioners and in some cases you can get your entire property completely furnished at no extra cost!

Many private sellers are experiencing difficulties as they purchased off-plan property several years ago with the intention of selling upon completion for a profit. Due to the fact that there’s a surplus of new homes for sale and lack of matching demand, many sellers are happy to sell at a break-even price. Imagine getting a property for the price someone paid for it three years ago – it IS possible!

So – how can you get the best deal? The quick answer is to make lots of discounted offers on lots of properties – sooner or later someone will agree to negotiate. What is ‘lots’ and how much should you ‘discount’? That all depends on how eager you are to get a good deal and what your intentions are.
In some countries and regions, property prices have increased astronomically – a couple years ago, reports of 10% to 30% increases per year were normal. Many investors purchased off-plan property with the intention of renting or selling upon completion. Now that the economy is gloomy and times are difficult, many property owners are finding that they can’t rent or sell. Provided they purchased the property before the ridiculous price hikes, it wouldn’t be difficult for them to drastically reduce their sales price to get a quick sale. In many cases, property owners can slash their property price and still make a profit!

If your intentions are to emigrate or buy a holiday home, there are some exceptional opportunities out there. Make offers below the asking price and negotiate for as many extras as possible.

And if you’re interested in investing it’s absolutely paramount that you do your homework and create a strategy. If you’re going to buy to sell on you need to determine the real market value (not the price the property is up for sale for). The real value is what people are prepared to pay for the property. You also need to determine who’s going to buy the property (target market) and if there is enough demand. Provided that you think you can sell the property at market value, you have to make offers way below that price point. Do your research, determine the costs associate with buying and then factor in your profit – people make a living from buying at below-market value and it can be very lucrative. It can also be extremely expensive if done incorrectly.

Whether you’re interested in overseas property for a home or for investment purposes, there are definite deals to be had. Don’t be afraid to make low offers and negotiate for extras!

As you will know, we at the The Overseas Guides Company have sourced a whole bunch of good, dependable property people (and resources) to help you along your way. Just go to: http://www.greecebuyingguide.com/property.htm and let me know how I can help you, or contact Elaine at the office on 0207 898 0549 - she'll help you with anything you need.