One thing is for sure, few posters expect to make quick profits these days. 'Making substantial profits over the short term is virtually impossible now,' says Investy on the totallyproperty.com overseas forum.
{jumi [adcode/adsense-468×60.txt]}
'I have lost count of the number of times people say they've doubled their money yet when they come to sell they find it can take years and the apparant profits were just heresay. Furthermore there is a tendancy to underestimate costs. One cost for example will be the interest you will no longer make as a result of taking money out of the bank. Others will include ongoing maintenance, rubbish collection, insurance and so on. They you will have fees to sell which are substantial,' he continues.
Likewise The Soup Dragon points out the obvious – the chances of making money improve the longer you are prepared to hold onto the property – but it is good advice for those who are new to the property investment market.
'The key here is to do your homework and check that rentals are likely to cover your ongoing costs such as mortgage payments, upkeep, local tax etc. Don't put your faith in what agents are telling you. Investigate everything for yourself. I'm only interested in an agent's view when they aren't promoting that development. They will give you negatives and try to turn your attention to what they are offering,' he says.
The last comment fits in neatly with another post on the same forum dealing with whether it is a good idea to buy overseas property directly, without agents. The advice is a resounding no.
Selling direct is more popular in the US where there is lots of property FSBO – For Sale by Owner, the thread reveals. The downside is that it is usually not top end property that may need work but then again this could be an attractive investment for a buyer who is happy to do just that and perhaps add to profits at the end of the day.
Poster Escott says he uses Craigslist in the US as a source to buy and sell property. Also in Florida, for example, the seller pays the buyers commission.
The practice of not using an agent is common in France where you can buy direct, albeit through a Notaire, and not use an estate agent at all.
But this particular thread is full of advice to use the experts, especially when buying abroad.
Although there is a lot of doom and gloom about the global property market at present a glimmer of hope appears on the singingpig.co.uk forum where posters reveal that it has been possible to buy well and reap the benefits.
Pugsy reports: I have to say, my properties are doing better than ever. The least voids I've ever had, higher rents and the most profit, so I can't complain.'
And James Cameron says; 'I watch the local market rather closely, and I generally aim to buy below market, by choosing places that need a little work, and are therefore by-passed by many buyers, and then negotiating carefully. All of the places I have bought are now achieving rents ABOVE my original budget, and rates are somewhat below the budget. So cash flow is better than expected.'
When it comes to investing in emerging markets there are some pretty brutal comments on Eastern Europe, particularly Albania, on the Channel 4 Overseas property forum. Although the thread started on the subject of finding cheap properties, it has become an interesting read on why to avoid the Balkans.
Vonraisa posts; 'Had an agent/associate of mine check out some beach side building land with a view to purchasing in Albania. On approaching a local lawyer to establish ownership he was told, and I quote "Ownership and papers mean nothing, if you have the money we can make the papers okay". God knows what they would have done to make the papers "Okay" and God knows who may have been pressured or worse to sign them over to us. Business cannot be conducted in this sort of environment.'
Other posters point out that there are frequent disputes over land ownership, illegal construction and legal problems that even the best lawyers can't sort out. Add to that a lack of infrastructure. And if you think Albania has problems, well don't even think about Macedonia!
However the post does reveal there are genuine bargains outside Eastern Europe. Recommendations include central Portugal where country cottages are still available for €20,000 and Hurghada, Egypt, where apartments are still available from around £22,000.
Or perhaps the more ambitious might try Namibia. 'I would like to suggest a house on the Skeleton coast just after Cape Cross towards Swakopmund, Namibia, for about £10,000 and less. Beautiful endless space, beautiful desert right next to the Atlantic, quad-biking galore, fishing oh wow, peace?' reports Anke.
