Overseas Property Due Diligence Demystified

It is almost impossible to have a conversation with anyone who is looking to invest in property without hearing the words – due diligence. But what exactly does it mean?

When we are buying property in our domestic market, we tend to be very thorough. We want to know about the town planning, the land registry, structural surveys, sewage works, the neighbours, subsidence issues, plumbing, roofing services from los angeles roof repair, insurance and price of the last few properties sold in the street. We will hire the best solicitor we can afford and some of us will even camp outside the property late in the night to ensure that we do not miss a single thing! Ok I must admit that although I have done the camping thing, you really do not have to take it this far. If you need a great plumber, then check out this plumbing company.

All of this is done because we want to make sure we are buying a good investment and do not want too many surprises when it is far too late.

It is funny how we do all of this when we are buying a property 10 miles from our home, but tend to do a lot less when we are buying 10,000 miles away. I would encourage you to take the time to carry out extensive due diligence when buying property overseas. Do not be seduced by the endless stretches of sandy beaches and all year round sunshine.

We all have different objectives and goals, so there is no ?one size fits all’ due diligence manual. However, there are a few key areas that we should consider to help us to make an informed decision about an investment: Macroeconomic, Microeconomic and Project Specific.

Macroeconomic

Macroeconomic looks at the big picture, it focuses on the national economy as a whole. Gross Domestic Product (GDP), Foreign Direct Investment (FDI), economic growth, government incentives, stability of currency, tourism statistics, property cycle, national supply and demand ratio and taxation.

Microeconomic

 

Microeconomic looks at things at the local level. Local government, building restrictions, local business activity, local incentives, investment into the region, rental demand and resale potential.

Project Specific

Project Specific is when we look in detail at the individual project or development. Building and planning permission, developer’s track record, bank guarantee, purchase contract, maintenance contract, deeds, plans, build specifications, size, price and design.

In general, the majority of overseas property purchases are successful. By carrying out thorough due diligences before you invest, you will be in a stronger position to make an informed decision and your chances of success will be that much higher. Happy investing!

Purchase with Confidence

Our ‘Due Diligence’ process is probably the most extensive carried out by any property company today. In fact, some developers do not deal with us – apparently, we ask for too much information. That is fine by us, we only want to work with reputable developers who are more than happy to give us all the necessary documentation; after all, the security of our client’s money is of the highest importance to us and we want to maintain our proud record of 100% delivery. Click here to read our ‘Purchase with Confidence’ guarantee.

 

Be the first to know about the latest Brazil investment opportunities

If you don’t already receive our newsletter, you can register here for free. You will also be the first to receive exclusive VIP releases, the latest research papers and member discounts.