Real Estate Investor Magazine South Africa November 2013 | Page 60

GETTING STARTED

BY MIKE SMUTS

Important Questions You Need To Ask

Before you buy a property overseas

W

herever in the world you decide to
purchase an investment property,
chances are you’ll use the services of
an estate agent, buyer’s agent or property finder.
But the level of commitment and services you
receive from an overseas agent can vary hugely.
With this in mind we look at the important
questions you need to ask your agent when
investing offshore.

Who do you represent, the seller or
me?
It’s important to understand where your agent’s
loyalties lie and what their obligations are to
you. The offshore property market, like the SA
market, is primarily a service for the vendor,
which means most agents represent the seller
and not the buyer. Many firms who sell offshore
property under the guise of being “investment
specialists” are unfortunately nothing more than
glorified estate agents and make more money
from their commission from the developer than
they do on fees from their clients. As a buyer with
little or no local market knowledge it’s important
that you have someone in your corner whose sole
responsibility is to you. When you spend the
greatest amount of money on the biggest deal
of your life you don’t want to go into it with the
odds stacked against you.

How familiar are you with the country
and in particular, the local area in
which the property is located?
The principle of letting out a property to
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