Thinking of Buying an Overseas Property? Think Again.
Tempted to invest in overseas properties to escape the red tape in Singapore and make profits the easy way? While overseas properties are indeed more easily accessible, it is important to consider the risks involved before threading the waters of the overseas market. Here are 3 risks involved when purchasing an overseas property.
Overseas developers may not have sufficient funds
Contrary to the strict regulations in Singapore, overseas developers may begin construction even if they have insufficient funds. Instead, the developer may attempt to sell units off during construction so as to make up for the shortfall of capital and allow them to finish construction. However, should they fail to do so, the developer may halt construction and the project is called off. When this happens, you will only be left with losses. Since it is difficult to obtain a comprehensive overview of the developer’s finances, throwing your money into unknown waters is clearly a risky move.
You may be provided with false information
Are you really talking to a legitimate real estate agent? Is the overseas property really going to be as described? Does such a land even exist? These are some questions that may pop up as you consider buying an overseas property. Unlike certified real estate agents in Singapore who are obliged to disclose all information to you, overseas agents or representatives may be taking advantage of you by deliberately hiding information or even fabricating information to get you to pull the trigger and sign the papers.
Legal action is not available to you
First and foremost, it is important to have a detailed understanding of the laws of the country in which you are looking to purchase your property. After all, if something goes wrong, how will you know how to fight for your rights? More importantly, it is important to consider the cost of engaging a lawyer to fight an overseas case, not to mention if the case drags on for years due to inefficient judicial systems.