Financing a second homeFunding of a second home
Beware, dogfish are swimming freely in alien seas and many have already put their teeths in the riches of the careless Brits. Don't be an absolute idiot abroad, you have to be very careful in planning your real estate adventures abroad. "Mark Bodega, head of HIFX exchange rate specialists, says Florida is once again drawing UK shoppers, seduced by the 50% fall in price since the global economic downturn.
The real estate agent Universal21 hopes to attract UK to Istanbul. There are five-year lease warranties with full house administration and no additional charges. Agent Monica Anca says that you can buy one-room flats in the southwest of Istanbul from 50,000 pounds and get 6% to 7% annual returns on them. "This is a favorite asset class, with recent annual equity appreciation of 20% and zero income taxes after five years.
However, the dreams of a strange realty can quickly turn into a bad dream. What a dread! "Â "Â" Realty realtors jest that overseas shoppers forgot to grab their brain, but Koutsoudes says. Like with any kind of return on your money, you should be careful not to let anyone promise too much, he says. "Request proof to support the reported yields and credentials of prior purchasers.
Says Nessling: "The reality is that a top class home in an appealing setting doesn't need a warranty because it attracts tenants anyway. "Even more skeptical is Stephen Hill, leader of the Bolt Burdon Kemp lawyer's expert carelessness committee, about lease warranties. This indicates that the amount you pay is too high, and the return on your lease can drop dramatically once the warranty expires.
"It'?s much more secure to buy a house that has already been constructed. There is a risk that you are shopping in a real estate world that is going to be bloated by six years of inexpensive moneys. ¿Who will probably want to buy the real estate? Technical consultation is required for this. Think about it before you buy a place that uses low cost carriers to get you there.
"It'?s true that too many people buy for their own use. "Ray Withers, CEO of real estate investments firm, property Frontiers, says if you want to buy more than one home, you should share your risks. So, if your first home is in a tourist town, you should make up for it with something in a flourishing city center, Withers says.
Some 15,000 Britons were disappointed after purchasing off-plan real estate in Cyprus with CHF sterling loans. However, as the safe-haven rose in the course of the global economic downturn, its repayment of loans rose. "The purchase of real estate abroad opens up an exhilarating realm of opportunities, but is also a realm of risks.