Guide to Investing Overseas
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How <strong>to</strong> protect yourself<br />
when investing in<br />
overseas property.<br />
Take advantage of our expertise<br />
in overseas property investment,<br />
with this FREE guide.
Introduction<br />
<strong>Investing</strong> overseas is often seen as higher risk than investing in your own country,<br />
but with the right expert team around you and by being rigorous in your own<br />
research, there’s no reason it should be that way.<br />
To help you avoid all unnecessary risk, we have used our years of experience<br />
investing abroad on behalf of clients, <strong>to</strong> create this free guide on how <strong>to</strong> best<br />
protect yourself and your money when considering investing abroad.
1<br />
Build an expert team<br />
around you<br />
1) Find an experienced, independent lawyer.<br />
One of the most critical pieces of advice we can give, is <strong>to</strong> ensure you always use an independent<br />
lawyer <strong>to</strong> represent yourself throughout the entire purchase process. Buying property overseas<br />
can seem quite straightforward, but with any unforeseen challenges that may arise you will be<br />
very grateful you <strong>to</strong>ok on a lawyer when you have their expertise on your side.<br />
When we say ‘independent’ lawyer, we mean one that only represents you within the purchase<br />
process and has no ties <strong>to</strong> the developer. Make sure you do your background research in<strong>to</strong> this<br />
and take a personal recommendation where possible. Don’t opt for the cheapest company <strong>to</strong> try<br />
and keep costs down, as there are some unscrupulous lawyers out there and in most cases you<br />
get what you pay for. An initial outlay for a good solici<strong>to</strong>r will be an excellent investment for your<br />
own peace of mind and <strong>to</strong> help protect your investment in the future.<br />
Redbrick Wealth is happy <strong>to</strong> suggest legal companies we have worked with in the past who<br />
specialise in the purchase of overseas property.
2) Consider the benefits of using a Property Investment Agent.<br />
If you are new <strong>to</strong> overseas property investment (or have a busy lifestyle with limited time <strong>to</strong><br />
carry out fundamental research in<strong>to</strong> potential investments), you may want <strong>to</strong> consider investing<br />
through a property agent. The role of a property agent is <strong>to</strong> support you at all stages of an<br />
investment. Agents will work with developers who they have already thoroughly researched<br />
(giving you that extra bit of added confidence and security), and assist you throughout your<br />
own Due Diligence process. A property agent is there <strong>to</strong> support you with any questions <strong>to</strong> the<br />
developer, ensuring that your purchase process runs as smoothly as possible.<br />
(Image shows one of our investment opportunities<br />
in the development of a luxury hotel and golf resort in France.<br />
You can download the brochure on ‘Chateau do la Cazine’<br />
from our website: www.redbrickwealth.com)
2<br />
Due Diligence,<br />
Due Diligence,<br />
Due Diligence.<br />
Aside from an independent legal team, being thorough in your own<br />
research is your biggest ally when reducing any risk involved<br />
in investing overseas.<br />
Due Diligence might be a timely process, but could save you thousands by<br />
flagging up any potential issues at an early stage. Even when working with<br />
an agent who has already carried out research on a development<br />
opportunity, it is vital you know what <strong>to</strong> look for when starting your own<br />
Due Diligence process.<br />
Redbrick Wealth has worked with carefully selected developers for years –<br />
those with a proven track record, and previously successful developments<br />
(where returns have already been paid <strong>to</strong> inves<strong>to</strong>rs). We would like <strong>to</strong> use our<br />
expertise in this field <strong>to</strong> offer you a checklist of what <strong>to</strong> look out for when<br />
considering investing abroad:<br />
Check out the developer:<br />
• Look at the developer’s track record with previous projects.<br />
• Ask <strong>to</strong> visit previous completed projects where funds have been<br />
returned <strong>to</strong> inves<strong>to</strong>rs.<br />
• Make sure you meet the developer and ‘walk the ground’ of<br />
where the new development will be.<br />
• Use Companies House, Linkedin and Google <strong>to</strong> do your own<br />
research in<strong>to</strong> the background of the company direc<strong>to</strong>rs.
Check out the local property market:<br />
• Depending on the type of investment you are looking at (holiday rental,<br />
residential, etc.), take a look at property rental and sales prices for the last 12 months in<br />
that area.<br />
• Take an interest in the general economy of the country and the health of both the national<br />
property market and holiday rental markets.<br />
• Beware of exchange rate movements. Rates do not need <strong>to</strong> move substantially <strong>to</strong> affect the<br />
value of your purchase. A drop of just 10% can move a property out of your purchasing budget<br />
(causing you problems if you’ve already signed a<br />
contract). Secure your rate of exchange as early as possible, and speak <strong>to</strong> a<br />
specialist in this area <strong>to</strong> support you.<br />
Check out the land:<br />
• Check with Land Registry who owns the land where the build will take place.<br />
• Check the land has the correct planning permission.<br />
• Check if there are any other charges on the land/property. (You want <strong>to</strong> ensure you have First<br />
Charge against the asset).<br />
Check your contract:<br />
• Read your contract thoroughly and make sure you seek independent,<br />
professional advice <strong>to</strong> ensure full understanding of what you are signing.
3<br />
Reducing the risk<br />
How <strong>to</strong> spot a risk worth taking.<br />
However enticing investment numbers are, it’s essential <strong>to</strong> take an impartial look at any potential<br />
investment overseas and <strong>to</strong> be realistic about any possible downsides <strong>to</strong> an investment.<br />
Generally, the higher the risk, the higher the reward, although solid diligence and careful<br />
planning can reduce many of the risks associated with overseas property investment. The free<br />
advice in this guide gives you an excellent place <strong>to</strong> start when searching for a secure and safe<br />
investment. Always be aware of the ‘risk v reward’ ratio when making a decision <strong>to</strong> invest.<br />
Choose your developer carefully<br />
The Due Diligence section of this brochure gives a thorough checklist of what you should look<br />
out for when choosing a developer <strong>to</strong> work with. Whether you are new <strong>to</strong> investment, or a<br />
seasoned inves<strong>to</strong>r, working with a recommended developer gives you a great place <strong>to</strong> start.<br />
Having the initial recommendation of reliable developers with completed projects for you <strong>to</strong> see,<br />
offers a fantastic stepping-s<strong>to</strong>ne for your next investment. This is when working with a property<br />
agent brings incredible value. We would welcome the opportunity <strong>to</strong> talk <strong>to</strong> you about the<br />
developers we work with and the opportunities we currently have both abroad and in the UK.<br />
Redbrick Wealth offers a number of levels of security <strong>to</strong> inves<strong>to</strong>rs…<br />
We act as a Buyers Agent at all times. This means<br />
we represent your interest in any potential<br />
investment (not that of a developer) and search<br />
out opportunities that best fit your investment<br />
goals.<br />
We are so confident in the developers we work<br />
with, that we even invest in their projects<br />
ourselves. How many other agents can say that…<br />
ask them and see.<br />
All the investment projects we put in front of you<br />
will offer fixed rate returns (of 8% upwards) for a<br />
set number of years. Many of our deals also offer<br />
very attractive buy back options of up <strong>to</strong> 150% in<br />
value.
You can download brochures from our website on all of our opportunities, or<br />
please contact us <strong>to</strong> discuss your personal circumstances and your<br />
investment goals.<br />
We currently have luxury hotel developments, student accommodation<br />
and care home developments across France, the USA and the UK.<br />
We would love <strong>to</strong> help you buy in<strong>to</strong> a secure<br />
and rewarding investment overseas.<br />
0845 3888 358<br />
www.redbrickwealth.com<br />
info@redbrickwealth.com