Property Investment Advice – International property investment
Being an active property investor, every week I get probably near on 1000 properties offered to me at up to 70% off valuations as well as those I can earn around 12-20% commission on as well. In Spain, in Florida, in Detroit, everywhere in fact apart from areas I'd actually want to invest right now.
In fact, one UK company wanted me to sell their outstanding stock and were offering £10,000 commission per property, a massive commission. The properties come with a two year rent guarantee and are all three bedders which have had a touch up refurb. All sounds good… right?
Wrong. If people are offering you 43% off or 55% off or even 75% off. No matter how good the deal, just don't do it. Avoid it like the plague. Property in Spain, Cyprus, Bulgaria, Cape Verde, Florida… Just stay away…
Why? Think it through – there MUST be a reason why they're so cheap. They are in neighbourhoods where every house has been repossessed, where the neighbours are boarded up and where whole streets are vacant. The 2 year rent guarantee is simply paid out of the commission the company makes. Then in 2 years the client is left with a property that nobody wants, with lots of competition to rent it.
Any time there is £10,000 or more, 20% commission involved the sharks will come out to sell this arse end property. Don't be a fool.
Another story. Florida — beautiful property all looks good. A $400,000 property in 2007, now $150,000. Massive discount you might think… until you walk down the street and realise you can pick one up for £75,000 direct from an agent. Worse still is that the service charge is over $1000 per month (which wasn't in the brochure – in fact it said $300)… but then of course you have to pay for the pool, the gardens, the security and the local council rates.
Guys, just stay away…
I won't even go into some of the stories that I have for Bulgaria, Cape Verde etc…
My rule for overseas property is if you really must buy one…. do your investment research, go out and see it without the help of the agent or person selling you the property. Then ask yourself if it's really all the marketing brochure says it is. This alone will save you so much drama.
Live with passion,
Brett Alegre-Wood
