You're guide to buying property abroad
Thinking of buying property abroad?
At Sunsplash Homes we understand that investing in property abroad is likely to be one of the most significant investments you make. Whether you are looking to buy a place to call home or an investment property you will want to get it right!
How we work
Unlike property agents who work for the developer or seller we work solely for you, the client. We will assist you at each stage from initial idea through to a successful purchase.
This will involve:
Fact find meeting; this is your chance to tell us what you are looking for and for us to prepare a detailed search brief.
Research properties; we will source properties in your chosen area(s) and come back to you with an informative report on the merits / demerits of that location. We will list the properties available which match your chosen criteria.
Viewing Trip; if required we can liaise with agents to arrange the trip to your chosen location to view the properties.
Money Transfer Companies; where required we can refer you to the relevant financial institute to enable the monies to transfer efficiently and securely.
Financial Advisers; our finance company, Sunsplash Finance, can call you to discuss these matter. Our financial advisers can assist in budgeting and financial matters.
Legal Referral Agency; at the appropriate time Sunsplash Law can find you a reliable lawyer in the Country of purchase and look after your needs during this phase of the purchase. Sunsplash Law carry out due diligence on all our developers, we work while giving you peace of mind on a safe investment.
SunSplash Homes International Property Finders
- The Sunsplash homes social enterprise makes us totally unique to any investment property company on the planet. We work very close with a company called Buy One Give One Free. Our project is called Buy a Home Give a Home
- For every purchase you make we make a donation to enable a furnished house to be built and provided to a homeless family of 4.
- We also work with other charities such as World Vision and Anti Slavery.
- You can feel content in the knowledge that for every transaction you do with us we all make a difference.
Where to buy?
- The answer will not be the same for any two buyers. It depends very much on your unique circumstances and needs. You might want to consider:
What’s your attitude to risk?
- How important is flexibility to you?
- Do you intend to live in the property?
- Do you intend to rent the property?
- Will you manage the property yourself?
- What is your preferred climate?
- Is it a complicated or difficult place to buy?
- What’s your budget?
- Do you need to borrow funds?
Where to buy? - 2
Established Markets
- The favourite countries for UK property buyers currently include Spain, France and Portugal to name a few. These countries offer a mature market with all the benefits one would associate with an established area, such as local businesses, restaurants, hospitals and medical centres as well as comparative ease of renting out and an established retirement market.
Emerging Market
- HOWEVER, the possibility of potentially much larger capital gains and the excitement of exploring new areas is an attraction. There may be a higher degree of risk with emerging markets but equally a higher degree of reward may be possible. Whilst property prices are generally lower so too are rents. It is important to do your sums when considering an investment property.
- Careful thought is required in order to choose the market which has an acceptable level of risk for you.
Where To Buy - Part 3
Location, Location, Location
- Wherever you choose to buy the age old premise of ‘location, location, location’ still stands. You will need to consider the immediate local environment and to find out whether it offers what you are looking for, such as:
- Sea
- Beach
- Golf
- Shops
- City
- Amenities
- Schools
What is it for?
- As a first step it's useful to consider carefully your reasons for buying abroad. Essentially; what’s it for? Is it purely a financial move or is it a lifestyle one - or a combination of both! Being clear at this stage will save you considerable time, effort and potential stress later on!
The options:
- Personal use
- Personal use with support rental
- Investment
- Combination of above
- Other
- If you are considering buying for an investment you will need to consider what type of return you are looking for. The ‘best buy’ for rental income may not be the same as the ‘best buy’ for capital growth.
What type of property?
- What do you have in mind? As well as number of bedrooms consider whether you want a pool, a garden or terrace, etc. Prioritise these requirements so that you are clear about which are essential and which are just desirable.
- Another advantage to having a clear idea of what type of property you want is that it will help you direct your search. If you are looking for a 3 bed house with a pool there are particular areas which will prove more suitable than others.
Your options:
- House
- Villa
- Apartment
- Complex
- Renovation Property
- Other
What is your budget?
- Now is a good time to look at the budget. If you have taken time to budget carefully early on you are less likely to find yourself over-stretched when you are in the middle of negotiating a purchase!
A simple statement of likely costs could be set out as follows;
- Purchase Price: £_______
- Mortgage and Valuation fee: £_______
- Survey: £_______
- Solicitor’s Fees: £_______
- Taxes: £_______
- Search Fees: £_______
- Miscellaneous: £_______
- Total: £_______
Other financial considerations:
- Are you buying alone, with a partner or with others?
Do you have suitable finance in place?
Do you need to speak to Sunsplash Finance!
Finding your ideal property
- This is the fun part. It’s your chance to see what is out there. However, quite quickly you may find that you are overwhelmed by choice and options. This is where your initial preparation will help you by allowing you to narrow your search and focus on the those things that are important to you.
Things to think about when buying your property
Legal
- The legal process will vary depending where you are buying.
- Make sure you get independent legal advice!
- In general you should seek advice on all aspects of the purchase.
Typically:
- The best form of ownership
- Title issues with the land (does the seller own the land/property they are offering to you?)
- Enquiries and reports
- The preliminary contract
- Deposit
- Staged payments
- Bank guarantees
- Power of attorney
- Final searches
- Title deeds
- Taxes and registration relevant to that particular country
- You need to speak to Sunsplash Law!
Some Further Considerations
Taxes
- What are the local taxes?
- Are you liable for income tax on local income?
- Are any taxable deductions available?
- Should any income also be declared in the UK?
- Is there any tax relief available?
- What are the rules on capital gains tax?
- What are the rules on inheritance tax?
Dangers
- Beware:
- Buildings offered for sale without the required consents.
- Builders going bust before completion of a new-build.
- Unfair contracts (Always have contracts reviewed by an independent international lawyer).
- Organisations which are not regulated by bodies such as FOPDAC
- Specific local issues such as ‘land grab’ and title issues.
Health Care
- Will you require making use of the health system?
- Do you require Insurance?
Our Service and Fees
Normal service anticipates a completion within 3 months of our initial instruction.
Free no obligation initial consultation.
- The first step is arrange a meeting to discuss your requirements in detail. This is an opportunity to create a search brief that will be unique to you and reflect your preferences and investment criteria.
- At this point we can also offer initial, brief advice on any aspect of purchasing abroad including finance, tax, risk etc.
Property Search
- Once we have a search brief and you want us to proceed we can go out to the market and search for properties that meet your requirement . Properties that most closely meet your requirement will be presented to you for you to consider.
- Preparation of a bespoke property investment plan that fits exactly with your requirments; regardless of whether you want a holiday home in France or a portfolio of 25 properties.
Viewing
- Once you have found the properties that you like we will make arrangements for you to view them.
Our Service and Fees | 2
Negotiation
- Once you have selected a property we are happy to assist with the negotiation. Good negotiation skills can often result in significant savings.
Completion
- Once a purchase is agreed we can oversee and manage the process through to completion.
Our Guarantee
No Success – No Fee.
Investment Planning
What does your money pay for?
- Full Market Research
- Risk Assessment
- Due Diligence
- Portfolio Planning
- Extensive worldwide research
- Meetings
- Process of application
- Ongoing support through out your inspection trips and purchase process.
- Guidance as and when you need it from a recognised specialist in the field on international property
Who regulates us?
The Federation of Overseas Property Developers Agents and Consultants (FOPDAC)
- We pride ourselves on being members of FOPDAC, the International Regulatory body which governs overseas property developers, Agents and Consultants. Refer to their website at www.fopdac.com for further details of their work and how our membership can serve to protect you and give you peace of mind.
- We at Sunsplash Homes are Independent Property Finders, authorised and regulated by the Federation of Overseas Property Developers Agents and Consultants (FOPDAC), Register number is 5802583.
What to do if you have a complaint
- We hope this does not arise but if it does, please make contact with us at:
- In Writing – The Compliance Manager at Sunsplash Homes Ltd, Daws House, 33-35 Daws Lane, london, NW7 4SD
- By Phone – 0870 3 606 060 – please ask for our compliance manager.
Other Important Information
Instructions; wherever possible please provide all instructions to us in writing.
- We will, of course, accept oral instructions, which we will then confirm to you in writing.
- Written instructions to terminate our business relationship may be given to us at any time.
- Records; we can, on request, provide copies of all papers in connection with your file, whether kept manually or electronically. You may inspect, during business hours and having given us reasonable notice, records retained in respect of you. We will undertake to maintain such records for a period of six years from the date of each transaction.
Client Money
WE DO NOT HANDLE CLIENT MONEY
- We never handle cash and will not accept a cheque made out to us (unless it is a cheque in settlement of Independent Property Finder fees for which we have sent you an invoice)
- Registration of Business Documents of Title: We will register all business in your name unless otherwise agreed in writing. All contract notes and documents of title in respect of your purchase will be forwarded to you as soon as practicable after we receive them. Where a number of documents relating to a series of transactions are involved the number of documents will normally be retained by us until the series is complete. All documents will be immediately logged in a register when received or issued.
Other Important Information | 2
- Professional Indemnity Insurance: We confirm that we maintain Professional Indemnity Insurance for your protection in the event of negligence.
- Conflict of Interest: We offer Independent Advice, but occasions can arise where we, or one of our other customers, will have some form of interest in business, which we are transacting for you. If this happens, or we become aware that our interests or those of one of our other customers conflict with your interest, we will inform you and obtain your consent before we carry out your instructions.
- Data Protection Act: The personal and financial information provided will be used in assisting your Independent Property Finder in offering you the best advice as required by FOPDAC. The personal data provided will be stored and used in accordance with the Data Protection Act 1998.
- Your information may also be used by us to provide you with details of products suitable to your requirements.
- Data Subject Access Request - under the act, we will not pass on your personal data to any other companies without your consent.
- A copy of your Factfind will be emailed to you.
Contact Us
- call: +44 (0) 870 3 606 060
- email: enquiries@sunsplashhomes.com
- web: www.sunsplashhomes.com
- Head Office
- Daws House
- 33-35 Daws Lane
- London
- NW7 4SD
