REPORTER (British): We are happy to welcome to our show today, Patricia Ferguson, who is a renowned real estate
agent here in London and
specialises in the purchase of overseas properties. Patricia, welcome to the
show.
EXPERT (British): Thank you. I’m happy to be here.
REPORTER: Now, Patricia, it’s quite common for British
people to buy vacation or rental properties in other countries, is it not?
EXPERT: Absolutely, yes. Mostly in Spain, France…the
Mediterranean region in general. But also in markets farther away, such as Thailand, Australia, and Argentina. I
think it’s fair to say that with the British economy being so strong, more and
more people have disposable income. And given the rather shoddy weather we have
here in the UK, the idea of a place to go to that’s warm and sunny is more than
a little appealing. So in the last ten years, we’ve really seen an increase in
foreign property purchases.
REPORTER: That’s a good thing, no?
EXPERT: Well, yes and no. What I’m seeing as a real estate
agent is people buying into markets that they don’t understand, and as a result
losing large sums of money in the process. If you don’t do the appropriate
research, you might think that property laws are the same in, say, Thailand as
they are here in England. But that couldn’t be farther from the truth. For
example, it’s not very well known that in Thailand foreigners actually can’t
own the properties they buy. They are purchased on leasehold, which means that
you have ownership for a set period of time…um, usually around 30 years…and
then the property is once again the original owner’s.
REPORTER: That doesn’t seem fair.
EXPERT: Well, it’s a way to prevent foreigners from taking
over a domestic market. As you know, Thailand has a rather poor domestic
economy. So if foreigners buy up the real estate, where does that leave the
locals? They certainly can’t pay as high of prices, so they get bought out of
their own markets. And then housing available to them quickly disappears.
REPORTER: I see. That makes sense, actually.
REPORTER: So, if people do their research, they can avoid
running into these kinds of problems.
EXPERT: There are a few things you can do to mitigate
troubles. One is, as you’ve said, doing proper research. But as a layperson,
there are still going to be details that you will miss. So I highly recommend
finding a good real estate agent who is already familiar with the property laws
in the country that you wish to purchase in.
REPORTER: OK.
EXPERT: Secondly, and I can’t emphasise this enough, you
really need to visit the property in person before making a purchase. I know
that sounds obvious, but many people think that they can trust the photographs on
the real estate websites. Well, you can’t. It’s not just about what the
property looks like, but about the quality of the building itself. It’s vital
to have a trustworthy inspector come look at the place and check for any
problems or even potential problems. It will save you a lot of time and money
in the end, even if it requires an initial investment.
REPORTER: Here’s my question… If I’m foreign to a country,
how am I going to find, you know, a good real estate agent and inspector? How
can I know who to trust?
EXPERT: That’s why you need to work with a locally
based…and I mean here in England…real estate agency that already has contacts
in the foreign destination. They have already done their research and have
established networks of qualified professionals around the world. So paying
them to help you in your search will surely pay off in the long-term.
REPORTER: That is excellent advice. I’ve certainly learned a
lot from this conversation, as I’m sure our listeners have as well. Thank you Patricia, for your time.
EXPERT: The pleasure is all mine.