provide a safer marketplace for the long-term. Over the last few years the industry has faced challenging times, with the global recession affecting property markets the world over. During the boom years, owning overseas real estate, either for leisure or investment, was no longer the realm of the privileged few; easy access to bank fi nance and emerging markets offering low entry points made the purchase of a home overseas possible for many. Unfortunately the ‘gold rush’ was also somewhat marred by rogue practices, over-supply, and – with the onset of the recession – the all too common story of developers going ‘bust’ before completion of their off-plan projects. As we now start to emerge from the global downturn, there is much the industry can do to ensure we move forward with greater responsibility and more robust trading practices. Embarking on the purchase of a second home or
investment property overseas might be one of the biggest fi nancial and lifestyle decisions you will make, and for the uninitiated the process can be daunting and full of potential pitfalls as you negotiate through eager sales pitches, language barriers, and unfamiliar legal systems. There is however much you can do to ensure your purchase is pain-free, and it is important that you remember your responsibilities as a buyer. Remarkably, a high proportion of people buying property overseas do so without employing an independent lawyer to act on their behalf in the transaction. It’s very unlikely you’d purchase real estate in your own country without a lawyer, so don’t even think about cutting this corner when buying overseas. Remember, it is your lawyer’s role to protect your interests throughout the purchase, so no matter what anyone tells you, ensure you appoint
a qualifi ed, independent lawyer before going ahead with a proposed purchase. Of course it’s not just a lawyer you’ll be dealing with when buying abroad; there are a range of professionals that you’ll encounter. Throughout the purchase process you will want to feel confi dent in the service provided by these companies, and we encourage you to look for the AIPP member badge when buying overseas, as a sign that a company has voluntarily signed up for self-regulation to provide you, the buyer, with an avenue of recourse if they do not stick to the professional standards they have agreed to. As an independent party acting solely to improve standards across the industry, the AIPP has already helped thousands of buyers purchase safely overseas, with impartial guidance on the practical aspects of buying a property in a foreign country, and valuable assistance in cases where unfortunately things have gone wrong. An important aspect of the AIPP’s work is to help educate you, the consumer. If the buyer is informed, has sought the right advice, and approaches the purchase with their eyes open, they can signifi cantly reduce their chances of problems ocurring down the road. Of course, no amount of research, advice, or even regulation can guarantee against all problems; that things won’t always go to plan is simply a fact of life, and any investment necessarily carries some form of risk. Buyers should recognise this from the outset and take all possible steps to minimise the chances of things going wrong. By taking the advice on the following pages and ensuring you take care to safeguard your interests, your purchase can be a trouble-free and enjoyable experience. We hope you fi nd our guide an invaluable resource.
AIPP CONSUMER GUIDE 5
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