Current Guide to Buying Overseas Property

How the Economic Downturn Changed Buying Overseas Property

Buying overseas property is a very different proposition to what it was 2, or even 1 year ago. Firstly the options for financing a purchase are either a lot more limited or a lot more varied depending on what country the property is in.

This is because developers have gotten more creative with their payment and financing options to make up for the increased restrictions from traditional finance sources.

Secondly anyone buying property abroad will find that the power has shifted from the seller to the buyer -- in most cases -- and that property overseas is a lot cheaper than it used to be, with very few exceptions.

What they will also find is that information is a lot more easy to come by; agents and developers are aware that today's buyer is not going to take their word for it; they must have proof of every promotional statement.

Buying Overseas Property: Research now even more important

With that, we have saved the best till last, because doing the proper research before buying an overseas property has been made even more necessary by the financial turmoil.

That is true in so many ways and for so many reasons that it is hard to know where to begin. Perhaps the biggest -- or certainly the most important to cover here -- is the reduction in flights caused by the reduction in tourism and the price of oil losing its grip on reality.

According to the Office of National Statists tourism from Britain abroad fell 0.6% in 2008 compared to 2007, and fell a further 8% between May last year and May this year. That is just from Britain; around the world tourism has dropped drastically over the last 18months, and flights have been taken reduced almost as quickly as they were being added during 2007.

Unfortunately the airlines are not as quick to announce the fact that flights are being reduced as they are when they are being increased. A lot of the information found online is out of date where flights are concerned. Therefore it is a must to check carefully that the area you want to buy property in is well serviced by flights from popular tourism areas.

Of course, now we are in the upturn of the recession. In 2010 we can expect to see tourism rising, activity for buying overseas property is already growing because of the low prices. Therefore it is likely that any flights that have been taken away will be added again. It is just a matter of whether you want to take the gamble, or even wait long enough to find out.

At the same time almost everywhere with an airport will be serviced by indirect flights, and while some potential tenants will not want to go the indirect route, if you are buying as a holiday home, and getting a good deal in an area that you love, then it will likely be the lesser of two evils.

Another reason why it is even more important to be vigilant in the current climate: though things are recovering a lot of companies around the world are still facing difficulties because of the recession so doing your homework there is important.

If we put our minds to it I am sure we could come up with even more ways that buying an overseas property today, is a lot different to doing so in 2007 or before, but you get the idea.

If you want to know more reasons please subscribe to our exclusive mailing list to receive content not published on the site, including a massive e-book offering a complete guide to overseas property investment. In the meantime check out this guide a smaller but still impartial and comprehensive guide to overseas property investment.