If you have the intent to buy property abroad, you should follow a set of methodical and systematic process, based from careful analysis, planning and execution. However, more often than not many homeowners tend to disregard these processes and make their property purchases based from impulsive decisions that are driven by emotions and ignorance instead of rational considerations. Sadly, these impulsive actions often lead to serious ramifications. The inability to take appropriate real estate purchasing methods often lead to the procurement of a property without habitation license, refusal of utilities, unable to put the property for resale, poor house construction that may lead to accidents and worst having the house demolished.
Purchasing mistakes when you buy property abroad could cause legal troubles, stress and uncertainty that could last for a very long time results that prospective homeowners wouldn't like to happen. Purchase a property abroad hastily and you would surely lament your decisions in the near future. To avoid these mistakes from firing back at you, getting things done properly could mean doing things one step at a time and doing a lot of property-related researches. If you're able to get these things right, you'll certainly enjoy your overseas home without worrying about legal troubles in the future.
It cannot be denied that it is tempting to search for property investments whenever you're in a holiday vacation, and it does make sense to purchase property in a location that you know and you enjoy than putting your money in a property in an uncharted territory. However, you should also take into account that holidays aren't the appropriate time to scout for property investments because it is more likely that you are not on your logical mind during these times, which means you have to organize a schedule for your property-hunting visits. It is also advisable to search in different locations for varying real estate investments for comparisons that would help you with your decisions. One notable prospective location and property investments that you may want to look at are the homes for sale in Guam.
The costs of homes for sale in Guam are comparatively lower than in other countries, though the biggest cost could be accounted to the real estate agent, between 4% to 10% of the value of the property which would be paid by the seller, while the buyer would shoulder all the other fees including the title insurance, recording fees and the escrow fee. There are no restrictions on foreign property ownership, but in Guam foreigners are only allowed to purchase one owner-occupied property under their personal names if they are not citizens of the USA and have no intention to become permanent residents in the said territory.
Assuming that you have found your dream house in one of the homes for sale in Guam, the next thing that you would have to go through is to check whether there are associated problems with the property that you would like to buy. The first action that you have to take is to have the property inspected and surveyed in order to analyze its physical condition and know if there are structural problems such as subsidence or if roof replacements are needed, which will cost extra finances for you later. Once there are no issues, there is some form a title, written records of who owns what, and series of contracts that have to be signed, which falls into two stages: preliminary contract stating the owner's commitment to sell the property and the buyer's commitment to purchase it accompanied with some form of deposit, and second, the completion of closing contract that would seal the deal. With all these, it would be necessary for you to have your personal legal representative and not the one suggested by the selling agent to ensure that your interests are well represented, the property bound are clearly outlined and there would be no ownership disputes later.
If you will buy a property in Tamuning, for instance, with the objective of using it as a profitable investment, you must give emphasis on the financial elements of such prospective property. If your objective is to use such property to earn through rentals, you should check on the local rental market for you to be able to establish your expected returns. It is also important that you do some consumer research in order to gauge the rate of occupancy in the area where you intend to purchase your property compared to a property in a nearby community along with the costs like utility bills, taxes, housekeeping so that you could make realistic estimates. Generally, there are many pitfalls that one could encounter when purchasing a property abroad especially if you are a nai¿1/2ve prospective home buyer, but this should not be a reason to put you off since owning a property of your own is far more rewarding than any other experiences that you might have.
If you are to buy property abroad, let's say you've chosen one of the homes for sale in Guam specifically in Tamuning, it is important that you follow a systematic real estate purchasing method in order for you to get the best deal out of your money. Remember not to buy a property hastily as this could lead to stress, uncertainty and legal troubles that you would have to deal with for a long period of time.
-Alison Ward
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