Looking at the threads it would appear that there are still people out there who buy abroad without using a solicitor. Member roypower confessed that he 'took the agents advice' and didn't use a solicitor. What happened next is a lesson for everyone.
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The wrong price has been put on the deeds which means a higher capital gains tax will be payable on selling, the agent has been paid for furnishing the apartment which they haven't done and now don't answer the telephone. As the writer himself says; 'I feel really stupid,' and now he is wondering what to do.
The answer is that he can seek legal redress but this, of course, could be costly and lengthy.
If you are buying off plan in Bulgaria the actual buying process is just the start of the headaches. A lot of investors in the ski resort of Bansko are disgruntled. They report, on the same forum, that there is now an oversupply, mainly due to a lot of Irish buyers who paid top prices last year and who are now selling due to the credit crunch. It is clear there is now an oversupply in this resort and perhaps it would not be a great buy at the moment.
Other concerns centre on the finishing of apartments. General opinion is that it is 'appalling' throughout Bulgaria and one forum poster has even put up pictures showing tiles that have fallen off, unfinished corridors etc.
The advise is to avoid oversupplied areas along the coast and in ski resorts like Bansko. But on the other hand ski resorts in Bulgaria are likely to be a good long term investment with the 2008 European downhill ski championship at Bansko this year and the resort's bid for the 2018 winter Olympics.
Another issue regarding buying off-plan is developers and the kind of information available. Running costs and build times are crucial along with completion and finishing as shown by a new thread this week on St Lucia in the Caribbean on the Channel 4 overseas property website.
Buying in the UK gets a big thumbs down from many taking part in the property forums this week. The general advice is to look abroad but to avoid off-plan – mainly due to the reasons already discussed above. However, there are those who advocate looking at re-possessions in the UK which are currently rising because of the current economic climate and the banks' reluctance to offer mortgages at the moment.
Areas highlighted as good buys at present include Egypt with apartments starting at £20,000.
Just how you buy a property abroad prompts a lot of opinion especially the issue of buying as an individual or as a company. This has advantages and disadvantages. Investors buying in Spain could consider setting up a UK based limited company to do so. According to those discussing this issue on the eyeonspain.com forum it can save a considerable amount in tax including transfer tax and inheritance tax. But the wide variety of opinion shows that there is no substitute for taking professional advice from an accountant or solicitor.
In general transferring the ownership of a property to a company is a hot topic and is also covered in a new thread on the singingpig.co.uk forum. Member Joe Cole raises the issue of transferring two flats that he owns and lets out to a limited company. The advise, of course, it to speak to an accountant, but it also suggest this may be okay for a buy to sell property but not necessarily the best for a buy to let property unless you have a very large portfolio.
Once you have bought property abroad there is still a mountain of potential problems especially if you are renting it out. Choosing to do so without the help of an accountant is regarded as a bad move. But not everyone takes the cost of an accountant into account.
A thread on the Channel 4 overseas property forum reveals that accountants in Romania, for example, cost anywhere between €60 a month and €200 a month. There is also a lot of discussion on whether to buy as an individual or as a limited company, highlighting this as a big issue for investors.
Finally for those who are totally bewildered by all the advice about buying property at the moment a thread on housepricecrash.co.uk could provide just the answers you are looking for. Started by greenalien it suggests buying a boat instead!
