we’ve developed an exclusive summary which you can download for free that includes the top ten most expensive cities, and the top 10 least expensive. We’ve also included the methodology behind our bi-annual survey. When you download this free WorldWide Cost of Living summary, you will discover which cities are currently considered the most expensive in which to live, and which are the cheapest..."
by Ivan Doherty, Chief Operating Officer & Investment Advisor, IFG Asia
Buying real estate in any country can often be time consuming and nerve wracking. If you are based in the country of purchase this can make it a lot easier, but cross-border purchases can be fraught with difficulties.
Most expats, because of their location, often find it easier and more convenient to buy-off plan property rather than second-hand property, the main reason being that it is often packaged and easy to transact the deal. In addition, with new property, in many countries, building guarantees are often included which reduce risk and the ongoing maintenance costs that may be associated with older properties. If you are living 4,000 miles away, you don’t need the headaches!
There have been far fewer off-plan developments around since 2008 due to the financial crisis and lack of liquidity for developers, but they are now slowly but surely coming back and being marketed to potential buyers and I would like to comment on some of the issues that have arisen for investors who have bought off-plan property outside their country of residence:
Why are you buying this unit?
This is a difficult one to rationalize, as we are all emotional and tend to buy property that fits our personality. Are you buying the property to be able to live in one day, or purely for investment? Or both? Try and separate your feelings and look at the objective of the purchase. All off-plan property in glossy brochures look attractive.
Timing
It would be worth looking at the property cycle statistics in the country where you intend to purchase – ideally you would not want to purchase at the top of the cycle. You can also aim to buy currency at a favourable rate by looking at historical trends. This does not take too long to research.
The developer
You need to thoroughly check out the developer and who is building the project and what experience they have. If this is their first project, I would advise caution. It is always advisable to choose a developer with a solid track record. They know the pitfalls and likely have a good source of financing in place, allowing the project to complete.
The agent
If the developer is using a real estate agent to market the project, check out, question and clarify all the points raised in their marketing literature and sales pitch. Ask how they will help you transact the business from start to finish...
Read more at Expat Focus: Money
Where, when and why did you move abroad?
We moved in December 2009. I am a court reporter and originally worked in the Federal Court of Australia. We moved here when I was offered a job in the High Court of Hong Kong. Our decision to move ultimately came down to making a decision regarding that perpetual question that plagues young families - security versus adventure - and choosing adventure!
What challenges did you face during the move?
When we moved, my daughter was only 10 months old. We shipped a lot of our stuff from Australia to Hong Kong, and it had to leave Australia about six weeks before us. That meant we spent our last six weeks in Australia without our beds, most of our clothes, and the kids' toys and books. We basically all slept on a futon in our empty loungeroom. Our last day in Australia was Christmas Day. We arrived in Hong Kong with 90kg of worldly possessions and moved straight into a temporary serviced apartment that my employer had arranged for us, which was 400sq feet. We couldn't even open our suitcases. We'd also sent our cats on ahead of us from Australia and had to wait six weeks for them to clear quarantine, so we spent a lot of our early days here traipsing to the cattery to visit them. And avoiding our 400sq feet of "space". I was still breastfeeding my daughter when we arrived, as well as starting a new job, and settling my son into full-time kindergarten. It was...
