1 PLANNING YOUR PURCHASE
greater capital appreciation, and for this reason Spain, Florida, Greece and Turkey are currently popular, but the recent boom-then-bust has taught us to look at the long-term view
accession was such a buzzword for investors, yet now we are all pondering the wisdom of buying in one of the eurozone’s so-called bailout countries. It’s not so much about political instability but economics and bad debts. For rental income, city lets can be far more lucrative
than rural locations, as can popular beach areas, year-round resorts and golf communities. Investors will also analyse tourist growth, occupancy
QUESTIONS.. YOU MUST ASK.. Why do you want
to buy overseas? Ask yourself exactly what you want from a property in terms of lifestyle and/or investment. What is your budget?
Compare local property prices with the travelling costs to get there and running costs. How essential
is accessibility? Consider how frequently you want to go, how long it will take, and if potential renters will make the same trek. How important
is rental income? To maximise your chances, focus on dual season / winter-sun locations which bring in a greater number of weeks’ income.
levels in rental properties, management costs as well as infrastructure changes and transport improvements over the long term. Savvy investors will also consider risk and exit strategy. Risk means whether a country is a so-called “safe” place to invest in terms of buying process transparency, land ownership and title issues. Exit strategy means asking how easily will you
be able to sell on your home, when, and to whom. Will the locals buy it? How wide is the market for it internationally? Recent events have shown that truly international
markets – like Ibiza, Marbella and Lake Como, for example, have fared much better than areas dominated by (and reliant upon) one nationality. Professional investors will also look at the
exchange rates in markets, and try to buy in depressed markets with ailing currencies.
Lured by lifestyle? If something is purely for your own enjoyment, you will be guided by lifestyle and your budget. What type of area will you seek: beach, golf resort, mountain bolthole or rural retreat – and how will you spend your time there? Access will also come into it as you need to decide
how many times you wish to go each year, how long it will take you to get there and for how long each visit. Will you want winter sun and to play golf all year-round? France remains very popular for many reasons,
including stability and affordability, but access is a signifi cant factor because it is possible to drive there – useful for families with lots of camping equipment. Spain also remains our other favourite destination because of the climate, amenities, beaches and great selection of cheap fl ights to choose between.
Emerging or depressed markets can off er
Budget will also be fundamental, and you may
need to weigh up the cost (and time) of travelling to somewhere with low property prices versus a more accessible location with higher prices. Climate also comes into this of course: year-round sun for wintertime escapes also means higher air fares. For those wanting to relocate or retire abroad
permanently, the decisions alter yet again. If a job or family links don’t dictate your location, climate, cost of living, tax, and quality of life will probably factor. Common cultural ties and lack of language barrier
make America and Australia popular, though less accessible than France and Spain, and low cost of living draws people to countries such as Cyprus and Turkey – or the Far East.
AIPP CONSUMER GUIDE 7
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