YOUR VIEWING TRIP: THE GOLDEN RULES

Transcription

1 THE OVERSEAS GUIDES COMPANY YOUR VIEWING TRIP: THE GOLDEN RULES Your step-by-step guide to a successful viewing trip abroad OM0456W VISIT info@overseasguidescompany.com CALL +44 (0)

2 What is a viewing trip and why is it so important? If you are reading this guide then the chances are that you have reached that exciting stage of your overseas buying journey when you need to plan a visit to view property. Think about it you certainly wouldn t buy a property in the UK without first having a good look around and comparing it to other properties in the area, so why would you do that when buying in another country? The viewing trip is a hugely important part of the process, so you need to make sure that you plan it correctly to make it is as effective as possible. We would all love the opportunity to pop off to our country of choice numerous times to look at desirable properties at our leisure, but sadly, this isn t a practical or cost-effective approach. This detailed viewing trip guide is designed to walk you stepby-step through the process. You need to know exactly what to do at each stage to ensure you are truly prepared to find your dream property. Enjoy the guide The Overseas Guides Company

3 The Golden Rules Golden Rule 1: Establish your needs THERE IS NO POINT setting off blindly to the country you want to buy in with little or no idea of what you want. This is fine if all you want to do is check out different areas while on holiday, but if the sole purpose of your trip is to find your ideal property, you need to have established a few things well in advance. WHERE DO YOU WANT TO BUY? If you can hone down the exact area through extensive research and talking to an experienced and knowledgeable agent about your, you will be able to plan your viewing trip accordingly. WHAT IS YOUR BUDGET? Next, you should work out what you can afford and only view properties that fall within that bracket. It s fun to dream, but if the properties are clearly out of your price range, this is just a waste of time. And remember to factor in any taxes and fees that come with an overseas property purchase when setting your budget the price you see in the shop window is unlikely to be the final cost of the transaction. a city centre pied à terre, you need to make sure that you arrange to see these particular properties and these properties alone. If the last thing in the world that you want is a house in the middle of nowhere, or an apartment just off a bustling tourist strip, don t waste your time, energy and resources going to see them. This is why you should have a clear idea about what you want from the outset otherwise there is the chance that you will end up spending all of your time looking around properties that you will never actually want to buy. Remember you don t need to have everything completely set in stone, but it will pay to conduct as much research as possible to determine the areas that you are interested in and the types of things that are a must or deal breakers before you book your trip. This will help you to set some parameters to work within. To help you to work out these all-important factors, contact the Overseas Guides Company to request your copy of our viewing trip worksheets. These will help you to work out exactly what you want and need from your overseas property. WHAT KIND OF PROPERTY DO YOU WANT? To get your free worksheets, Whether you have your heart set on a beachfront property, a countryside escape or or click here. call the team on +44 (0) Y O U R V I E W I N G T R I P : T H E G O L D E N R U L E S 3

4 The Golden Rules SECURING A PROPERTY DURING YOUR TRIP There s a good chance you will find a property you d like to buy on your first viewing trip. This is not uncommon and if it happens, careful organising and an efficient estate agent will help you to secure the property and arrange for the sale to progress successfully after you have returned home. Before your viewing trip, ideally you will have opened a no-obligation account with currency transfer specialist Smart Currency Exchange and credited your account with enough currency to pay a depost for a property. It is also advisable to have appointed an independent bi-lingual lawyer, who will be on standby to check any contracts when you find a property and do subsequent due diligence. Once you have made and had an offer accepted on a property through your estate agent, keys things that you should have done, or at least have in motion, before the end of your trip, include: Sign a reservation contract and pay a deposit (sending funds through Smart Currency Exchange) to take the property off the market. As a rule, before signing any contract, you should show it to your lawyer for checking (fax or it to them if they are not in the area). Get or apply for a local tax identification number. Typically, this is obtainable from one or more police stations in the district. Open a local bank account. Ideally choose a bank with a branch local to your property face to face banking is still the norm on the Continent, so being able to pop in during stays at your property will make life easier. Grant power of attorney to your local lawyer, if you do not intend to be present in person for the signing of the deposit contract and final completion. Agree timeframes for the final stages of the purchase, namely the signing of the deposit contract and subsequent transfer of deeds (completion). It is also advisable at this time to also confirm which notary will oversee the property sale. Remember, a good estate agent will help you to coordinate all of the above during your trip. With all the necessary boxes ticked, you can board a flight home, satisfied that your lawyer can begin his/her due diligence and work towards the signing of a deposit contract (typically requiring a 5-10 per cent deposit), and ultimately completion day at the notary s office. Remember, as soon as you have committed to a purchase, you are committed to paying a fixed amount of foreign currency for your property. At this point, it is highly advisable to contact Smart Currency Exchange to discuss the best way for you to purchase your currency, typically forward buying it to ensure the cost to you in Sterling (or whatever your local currency is) won t change before you come to pay the final balance. In some cases, usually fast moving purchases, a deposit contract might not be necessary and you can advance straight to the completion stage of the transaction. Note too, some of the above points may not be applicable in some countries. Meet and obtain the necessary paperwork from your lender, if you are buying with a mortgage from a local bank. VISIT info@overseasguidescompany.com CALL +44 (0)

5 The Golden Rules Golden Rule 2: The Golden Three - things to do before you go THERE ARE THREE VITAL THINGS that we always recommend our readers get sorted out before they jet off to view property. In fact, they are so important, that we refer to them as the Golden Three. 1 FIND A GOOD AGENT Finding a good agent, or agents, is the first step towards a successful viewing trip. They can listen to your needs and select properties that fit your criteria so you can maximise your time in the country. Your agent will have a lot of invaluable background knowledge of an area and its surroundings, so make sure that you use them for this information. You may have researched an area, but they might know an alternative spot that, although a little less known, might offer all of the aspects that you find desirable. Before you choose an agent, make sure that they cover the area that you want to buy in and that they have properties that meet your criteria. The agent s website may list loads of properties, but if there is one that you have your heart set on, make sure that it is still available, as popular properties move fast. You can help your assessment of how good an agent is by talking to them. We recommend sending them an and giving them a call to see how they respond and how forthcoming and helpful they are. Don t be afraid to ask them how they can work to help you, not only to purchase a property but to ensure that they represent your best interests. Also ask for references so that you can talk to people who have used them successfully and make sure you follow up on the referrals. It is important to ask open questions, as this will get them talking and cover lots of ground, some of which you would probably not even have thought about! Y O U R V I E W I N G T R I P : T H E G O L D E N R U L E S 5

6 Finding a good agent Book estate agents well in advance, and make sure that you allow yourself at least half a day with one agent at a time, so you have time to see the houses for sale without rushing. In country areas, it may take a long time to drive to just one house, so you may only be able to see three properties in an afternoon. In a countryside area, a good agent will happily drive you around to see these properties in their car (which is probably better to take on the local roads than your hire car!). If you don t have a place to stay, they may well be able to find you accommodation if you give them enough advance warning. Leave enough time to wander around the town or village to get a general feel for the place. And just to emphasise, it s very important for you to find good agents. We would always expect a good agent to do the following: If you want an answer to a question, it would be nice to have someone call you back If you have a problem, you want someone to take action to get it resolved! Been there, done that... - some top tips from our readers Using a good agent will give you a better chance of getting things done properly. The following are snippets of the advice we have had from some of our readers who have been on viewing trips - and learned a few lessons along the way! Make sure to test agents out prior to going on your viewing trip send an asking a question and see how long they take to get back to you, and whether or not they seem enthusiastic about helping you. Whether you want a resale property or a new build, good agents have a large selection of properties on their books. A good agent is worth their weight in gold, as they ll know their area and their market. They ll understand who is charging what and where the best deals are. A good agent will not push you into anything at all: they will know you need TIME to consider everything and may wish to make at least two (or more) trips before you even think about putting an offer in for a property. A good agent wants you to be happy (and buy a property) so it s in their best interest to direct you to properties that suit your criteria. After all, once you buy, you will become a member of their community. A good agent will not just sell you a house they may well help you organise a bank account, a tax code, change the name on the electricity and water supply and update the council s records, organise your first local tax payments, and help you to understand how to pay them in future. They should feel that this is what justifies the high level of commission they earn.

7 2 ORGANISE YOUR CURRENCY EXCHANGE If you are buying a property in a country which has a different currency to the one you hold your funds in, you will need to exchange your funds into the new currency. You therefore need to make sure that you have spoken to a currency exchange specialist before you go, such as our trusted partners, Smart Currency Exchange. This is important for a number of reasons. Firstly, they can help you to set your budget. They will be able to look at the exchange rates and tell you how much you will get for your money once it has been transferred into the relevant currency. This is invaluable, as there is no point looking at properties that lie outside of your price range. Secondly, it is very important to understand how quickly exchange rates can move and how significant these movements can be. In recent years it has not been unusual for exchange rates to move by as much as 10 per cent, if not more during the course of the year. It would be a great shame to find that you are unable to afford the property of your dreams because you didn t plan your currency exchange properly. We recommend that you open a currency exchange account before you go on your viewing trip so as to minimise your currency risks and get instant access to a specialist. We also recommend that you download Smart Currency Exchange s report, A Currency Specialist s Guide to Buying Overseas Property, which contains their top five tips for a successful property purchase: 5. Prefund your broker s currency client account to minimise inefficiencies We suggest opening a completely free account with Smart Currency Exchange today. The earlier you sign up, the better. As there is no sign up fee or obligation to trade, but by signing up you instantly gain access to the expert knowledge of your own personal trader. They can guide you through the whole process, make sure that you have up-to-date information, and that you are taking the right steps at the right time. You can sign up for your account here. 3 FIND A GOOD SOLICITOR Finally, buying property anywhere is a complicated process, but when you add different countries laws and language barriers into the mix, it is important that you have someone on your side who understands how things operate. There have been cases in the past where agents and solicitors are working together this means that they are looking after their own best interests rather than yours. You need to make sure that you employ the services of an independent, bilingual lawyer who is wellversed in property sales and who can guide you through every aspect of the process. Remember, different countries have different laws. We can put you in touch with one of our recommended solicitors - call our Resource Team on +44 (0) Understand the consequences of currency fluctuations 2. Use a forward contract to avoid losses by fixing the price of your property 3. Open an account with a currency specialist as soon as possible 4. Know your sterling budget before you travel YOUR VIEWING TRIP: THE GOLDEN RULES 7

8 The Golden Rules Rule Number 3: Choose what type of viewing trip is best for you THERE IS NO REAL MODEL for a viewing trip They will show you the most comprehensive range of properties in an area from new developments to resale properties. An agent will know which developers are the best and which ones you should avoid make sure you make the most of this knowledge and don t be afraid to pick their brains at any given opportunity. - this means that you can organise it to fit your preferences. There are however a few popular approaches 1 GOING ON A VIEWING TRIP WITH AN ESTATE AGENCY Increasingly the most popular option, going on a viewing trip organised by a carefully selected estate agent has many benefits: They will listen to what you are looking for and use their expert knowledge to help you see the most suitable properties in the time that you have. Their priority is getting a sale, so they will want to make sure that they impress you with properties that meet your needs and that fall within the correct price range. A word of warning! Try to avoid using an agent who only shows you the developments that will earn them the most commission. Agents won t make as much money on resale or older properties but if this is what you want, they should still show you them. Try to avoid those agents that are clearly just out to line their own pockets rather than to help you. VISIT info@overseasguidescompany.com CALL +44 (0)

9 The Golden Rules You may think that you are covering all bases by booking a visit with more than one agent, but the fact with overseas property is that if you do this, you run the risk of seeing the same properties. Most agents will list the majority of properties in an area and will work with most of the developers. Time is of the essence when carrying out a viewing trip - that s why we advise that you make the most of your agent s expertise when abroad. To get in touch with our recommended agents, call our Resource Team on +44 (0) GOING ON A VIEWING TRIP WITH A DEVELOPER Organising a trip with a developer was all the rage back when we were in the property boom of the mid-2000s. At the time, developers were selling so much property that they were more than happy to subsidise huge numbers of potential buyers to come and visit their developments, no matter whether or not these people were serious about actually purchasing. Despite this becoming less popular over the years, there are still a number of larger developers who offer low-priced viewing trips, say around 200, for a two or three night stay where your days are spent viewing various different properties and complexes. On these types of trip the majority of time will be taken up by the developer. Remember, they are investing time, energy and money in you and, should you choose not to buy through them, they don t make a penny. Although you are under absolutely no obligation to buy with them and should not allow yourself to be pressured you should not treat the trip as a free holiday. The major disadvantage of going on a viewing trip with a developer is that they will only show you their own properties. Typically, you will be given little or no time to explore the spectrum of properties and prices offered by other developers that an estate agent would be able to show you. For this reason, if you decide to take this type of trip, you need to be 100 percent sure that the style of property the developer has is exactly what you want and is within budget. 3 A SELF-ORGANISED TRIP If there are a range of things that you want to look at and a range of areas that you want to explore, you may decide to organise your own trip. The major advantage of this is that you will be able to take things at your own pace and won t have to worry about sticking to the strict itinerary that the other options often involve. The success of your self-organised trip will be based upon how much research and preparation you conduct before you go out. Make sure you know which developments you would like to see and contact the developer before you go they may even arrange someone to come and pick you up which means you can avoid the hassle of negotiating public transport or car hire. TOP TIP If you are organising your own trip we recommend allowing yourself a little extra time so that you can just explore, follow your nose and see what you find. Sometimes buyers stumble across their dream homes completely unexpectedly! YOUR VIEWING TRIP: THE GOLDEN RULES 9

10 To-do list for when you are there Trips to view property can pass by in the blink of an eye you have so much to see, do and take in that if you don t proceed in the right way, it could all become a bit of a blur. Here are just a few handy pointers on things to do while you are there, that should help you when decision time rolls around... Take notes and photos When you are seeing property after property, they can all merge into one and you may find yourself mixing up features of one property with those of another. To make sure that you don t do this, be sure to take notes and photos of every property that way when you are wearily thinking about what you have seen at the end of a long day, you can go over everything and make an informed decision. Take a compass Developers and agents may well tell you that the garden is south-facing but who s to say that they aren t stretching the truth in order to make a sale? Don t be afraid to check facts or question them. Take someone with you It is always good to take someone along with you. They will be able to provide you with honest feedback and give you a second opinion. It is good to have someone to consult - after all, it s amazing how everything can seem like the best idea in the world when you are in the sunshine with a glass in your hand. A friend or loved one is likely to point out things that you might miss or might be overlooking as a result of those rose-tinted spectacles! Visit the property out of hours Your potential property may seem nice and peaceful during the day but how about when the sun sets? Do the tourists then flood out in their droves ready to party the night away right under your window? It is good to visit potential properties out of the typical hours to make sure that nothing unusual and anything that you don t like occurs.

11 The Golden Rules A few final pointers... KEEP YOUR EYES PEELED Just as you would when buying property in the UK, you need to keep your wits about you when you are buying property overseas. Look for tell-tale signs that a property or development might not be what you are being led to believe i.e. is the agent or developer trying to avoid questions about the property? Does the development all seem a little too quiet for the time of year? Is the property struggling to sell? If so, why? Take a close look at communal areas and how they are maintained. If a lot of units are being sold on as resales ask yourself why this is the case. GET IT IN WRITING If you are committing to a trip with a developer, make sure that you get in writing what is and isn t included in the price. This guarantees that there is no misunderstanding between you and the company hosting you. Problems can arise when parties have different expectations about what is included or involved. BUT GET IT CHECKED FIRST Remember to never sign anything without first having the document checked by your own, independent lawyer. Don t allow yourself to be pressured the chances are that if the agent or developer is pressuring you, there is something untoward going on. GOOD LUCK! Now that you have finished this report, hopefully things will be a little clearer in your head about the steps to take to ensure a successful trip. The Overseas Guides Team are always on hand to answer any further questions that you might have about the viewing trip process why not give them a call on ? The next step is to get your Golden Three set up, call our Resource Team on +44 (0) Then all you need to do is book those flights! Good luck do let us know how it goes! The Overseas Guides Company YOUR VIEWING TRIP: THE GOLDEN RULES 11

12 COPYRIGHT AND DISCLAIMER YOUR VIEWING TRIP: THE GOLDEN RULES First published in Great Britain in 2013 by: The Overseas Guides Company Ltd, 1 Lyric Square, London W6 ONB Copyright The Overseas Guides Company Ltd, 2014 No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of The Overseas Guides Company. Visit our website at: The author and publisher of this publication have used their reasonable efforts in preparing it. The author and publisher make no representation or warranties with respect to the accuracy, applicability, fitness or completeness of the contents of this report. The information contained in this guide is strictly for educational purposes. Therefore, if you wish to apply ideas contained in this report, you are taking full responsibility for your actions. The author and publisher disclaim any warranties (expressed or implied), merchantability or fitness for any particular purpose. The author and publisher shall in no event be held liable to any party for any direct, indirect, punitive, special, incidental or other consequential damages arising directly or indirectly, including from any third party services or products publicised or promoted through the report, from any use of this report, which is provided as is, and without warranties. VISIT info@overseasguidescompany.com CALL +44 (0)