Honest Realestate Agent

Experience International recommends their clients base their property purchasing decisions when looking for property for sale abroad based on the following 5 key principles:

• Credibility
• Ease of Purchase
• Security
• Return on Investment
• Exit Strategy

These stringent principles should be used on every property to ensure it is priced correctly.This is even more important during the current economic climate to ensure their funds invested provides maximum returns at minimal risk. Through buying a property using these principles ensures you are buying the right property and at the right price.

Credibility
Credibility is the key to determining the current price of a property and is derived from: Location, Quality of build, Developer’s track record and other comparable projects.  By ensuring the credibility of the development gives strength and guidance on what the asking price should be.

Ease of Purchase
The purchase procedure in every country differs hugely.When reviewing the asking price of a property also ensure you are aware of all the extra costs included.operty.  These include: payment plan options, taxes, solicitors fees, notary fees, finance and mortgage costs as well as the ongoing costs once you have purchased such as maintenance and service charges. The availability of finance or mortgages should also be fully checked.

Security
As a standard procedure Experience International carry out strict due diligence on every property development that they sell, however we also advise all clients to do their own research.  Checks should include: seller has clear land title, Correct Licenses for the country, correct planning permission, Developer, banks lending criteria, valuations, comparisons against other developments and security of your deposit.

ROI
The sustainable income achieved from your property during its life time will ultimately be its future value.Purchasing real estate during the current economic climate is a real buyers market.The yield and future capital value are vital in determining the success of your investment.

Exit Strategy
A lot of the time clients do not think about an exit strategy.  The profit is always made when you buy a property not when you sell, this means purchase a property wisely. Knowledge of your exit strategy options is very important to understand such how you will sell, what market exists, how demand and supply trends are moving, your current discount to market value, long term rental market if holding along with risks, what you can do to mitigate these risks and the worst case scenario.

A Case study
Zambrone Villas in Italy is a newly completed property in Calabria development is the perfect example of a holiday home that would suit the typical British holiday maker.  

Its asking prices are from €127,500 (£113,570) which you get a 2 bed, 1 bath semi-detached villa, with terrace, garden and sea views.

Location – Zambrone is a stunning area of Calabria, situated on the coast and boasts one of the best beaches on the Costa Degli De and close to the marina and centre for restaurants, watersports and recreational activities.

Size – the total plot including internal, terrace and garden is 263.95 sqm (£430 per sqm).This is way under current market prices and comparables considering this property is located at coastal location which often carries a premium.

Quality – This completed development has been built to very high standards and is currently being offered at off plan prices.  Every unit has already been registered at the local Building Registry ensuring purchasing in this development is safe and secure.

Specifications – research properties available nearby.The Zambrone villas are a secure community with swimming pool plus all villas have fantastic sea views.

It is important to compare like for like, so be sure your comparable properties are of a similar specification in terms of the number of rooms including bedrooms, bathrooms, reception rooms, furniture included etc. 

Rental Income – When looking for a property to draw in a strong rental income many of the above points will be very important in assessing rental values.  Every factor of this purchase indicates a very strong rental potential.

If you are looking at an investment property you need to work out the potential the weekly rental rate (or monthly if targeting long term local market) and likely occupancy rate. Local rental companies are a perfect source although you cannot always be sure you are getting the full picture. The internet is now an excellent tool for assessing rental values and demand so use it well to ensure the investment stacks up and the comparables you are using for the price will also provide some rental data. So in the case of the Zambrone Villas in Italy then simply do a search for Calabria property for rent in similar locations with the same or similar features and specification.

We hope these tips help and that you find happiness and success with your overseas property purchase and investment.

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