Overseas Property Nightmare
Hey everyone! Thanks for tuning back into my real estate blog for another info packed instalment. I have really been enjoying reading all the emails you have sent in about previous posts. It is great to hear that we are hitting the right topics and striking the right chord in how we address them. Thank you so much for the constructive feedback. It is all very helpful for us in planning further posts. Today I wanted to tell you about a bad experience I had purchasing property abroad. Not that I want to put you all off even considering investing in overseas real estate, that is the last thing I would want to do. But hopefully it will make you aware of some of the potential pitfalls, especially ones that are out of both your and/or the seller/developers control, such as a worldwide financial crisis! Pre-2007, investing in real estate developments in the newly opened markets of Eastern-Europe became all the rage. The worldwide economy was booming and there was a general feeling of (over-)optimism. As a result, people were borrowing money at cheap rates to invest in overseas real estate deals that promised to turn a tidy profit. Of course, the financial crash put paid to that and many people’s savings were completely wiped out. Or worse, they were left with a huge debt to pay off with nothing to show for it. It was a total disaster! But you live and learn. And you should also learn from this experience. Don’t invest what you can’t afford in overseas real estate developments. It could come back and bite you!