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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

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