Remote property investing, although very lucrative, can be a little intimidating for most real estate investors. This is because it involves a great deal of trust and red tape. The fact that you are buying property in a completely different region means that you will be definitely a little out of your comfort zone.
Sometimes, you may even be trying to buy property in a country that doesn’t speak the same language as you do. Which makes it a little bit more complicated because as we all know, some things get lost in translation. And when money is involved, ‘lost in translation’ is not something you want to hear.
But, if you have the courage for it, you can find unbelievable deals that will incredibly pay off as time goes by. With that in mind here are 5 things to ask when buying property remotely.
What are the rules and regulations imposed by the local HOA?
Almost everywhere you go, there will be some form of Home Owners Association that runs things. Before you buy into a remote community, you need to know into what kind of HOA you are buying. What are their rules and regulations, what are the associated fees and who will you be liaising with from across the globe? The one thing you need to know is that the HOA dues are probably always going to go up.
Do you need to be there physically to finalise the sale?
This is something most people forget to ask. In many cases, you really do not have to be there to finalise the sale, you can simply use your solicitors and a local estate agent to do that for you. But are you sure that is the case in this particular location? Look into and see whether or not you will need to travel. That is the sort of limiting factor that might discourage most investors.
What goes into demolishing an existing structure?
Let’s be honest, sometimes, all you want is the land that house sits on. Although it is still part of the property, you may not be very keen on keeping things as they are currently. You may want to demolish the existing structures and build something new. But, what kinds of limitations are imposed on such a move?
Maybe the building is considered part of the local heritage and demolishing might bring bad blood between you and the locals. Find out first if you can without reservation, do whatever you want with the property.
With what taxes will you have to contend?
Are you going to be paying tax on both sides of the divide for owning the same property or is it just locally based taxes? These expenses are not to be trifled with at all. They can really add up to a substantial amount. It is best to use a real estate solicitor who understands both sets of property law.
I’ve shared this Rick Otton video before about creating your own property investing team, but I’ll be sharing it again because of some useful insights. It’s always best to find two solicitors you can trust. That’s because solicitors can be very busy, and there will be times when they won’t be available immediately. Having two numbers is a good way of making sure you have access to a solicitor at all times – especially when enquiring about taxes.
How much time will the process take?
Okay, most people ask this from the start. Knowing how things work on your chosen investment destination is key to knowing how long it is going to take for your people to finalise the sale and give you the keys to your new property. Some remote investments take up to 6 months to complete while others take up to a year. Some may be completed in a short period of time. You simply must find out which case applies to your chosen destination.
It will cost you time, money and a bit of an international headache. But if you have an experienced solicitor and an estate agent working for you on the other side, then this process should be seamless and very lucrative for you.