Note: this is an article on ‘inspection visits’, as opposed to ‘subsidised inspection visits’. We’ll explain the difference at the bottom of this piece.
Purchasing an overseas property can be an adventure of a lifetime, offering the promise of new places, potential financial gain (or loss), and an entirely new lifestyle. However, buying property abroad involves risks and challenges, which is why many purchasers opt for personal inspection visits. These visits can provide invaluable insights into the property, the local market, and the surrounding area. In this article, we will explore 10 things to keep in mind when considering an inspection visit to help you buy an overseas property.
An inspection visit i.e. a personal visit to see the property and area in which it is located, is an absolute essential in order to evaluate your options. In our opinion, however, you should carry out, and pay for, this inspection visit yourself.
Pros of an inspection visit:
- In-Person Assessment: One of the most significant advantages of an inspection visit is the ability to personally assess the property. You can see it with your own eyes, touch and feel the materials, and get a real sense of its condition. This first-hand experience can help you avoid unexpected surprises later.
- Local Market Knowledge: Inspection visits allow you to gain a better understanding of the local real estate market. You can learn about property values, rental potential, and market trends from local experts. This information is crucial for making an informed investment decision. One visit may not be enough, however, so bear this in mind.
- Exploring the Neighborhood: You can explore the surrounding neighborhood and assess its suitability for your needs. Consider factors like accessibility, amenities, and safety. Being on-site allows you to determine if the location aligns with your expectations. You can also see a property and its aspect at different times of the day, which can make a huge difference.
- Cultural Adaptation: Buying overseas often involves adjusting to a new culture and way of life. An inspection visit can help you assess your comfort level with the local culture, language, and lifestyle. This insight can be instrumental in ensuring a smooth transition. Again, you may need to visit more than once to get a proper feel for an area.
- Negotiation Leverage: After inspecting the property, you can negotiate from a position of strength. If you discover any issues or necessary repairs, you can potentially use this information to potentially secure a more favorable deal.
Cons of an inspection visit:
- Costs: Inspection visits can be expensive. Travel, accommodation, and associated expenses can add a significant amount to your overall investment. Additionally, if you’re considering multiple properties in different locations, the costs can quickly escalate. Agents will often subsidise these trips, but they’re not doing this out of any altruism. It may be better to fund an independent visit yourself (see our article on subsidised inspection visits here).
- Time-Consuming: Planning and executing an inspection visit can be time-consuming. Coordinating travel, finding accommodation, and dealing with potential language barriers can be challenging, especially if you have a busy schedule. Again, agents may help with this, but you have to ask, at what hidden cost to you?
- Emotional Attachment: Visiting a property in person can create an emotional attachment that might cloud your judgment. It’s important to remain objective and not let your feelings about a location override the practical aspects of the investment. Visit the area out of season, to see if you still love it – and the property.
- Limited Scope: Even with an inspection visit, you may not uncover all the potential issues with the property. Some problems may not be visible during a brief visit, and you might need to rely on local experts for a comprehensive evaluation.
- Travel Restrictions: Keep an eye out for global events and travel restrictions, because these can disrupt your plans to travel to certain countries. Unforeseen circumstances, such as pandemics or political instability, may prevent you from visiting the property, which is obviously not ideal and can be expensive, if it’s not covered by travel insurance.
Inspection visits can be a valuable tool when buying an overseas property, offering firsthand insights into the property, the local market, and the neighborhood. However, they come with associated costs, time constraints, and the potential for an emotional attachment you might otherwise not have. It’s essential to weigh the pros and cons carefully and consider your individual circumstances and priorities. In the end, a well-planned inspection visit can be a crucial step in making a successful overseas property investment, but it should not be the only part of the decision process.
N.B. You’ll have seen mention of ‘subsidised inspection visits’ in this piece. A subsidised inspection visit is where an agent or developer offers to fully or partially cover the cost of your inspection visit. Again, there are pros and cons to this situation. You’ll find a full article on subsidised inspection visits here.
