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Posted on 30th Apr, 2019

Mistakes to Avoid When Purchasing a Repossessed House

The list of errors common to so many inexperienced investors is wide, especially in repossessed properties, but there are some errors that are easy to avoid, after learning to understand where and how you made a mistake when you aim at a market rich in opportunities such as that of investing abroad, and how to keep yourself safe from false steps to be able to invest in healthy markets and with adequate rents.

1) All too often, to begin with, the importance of the legal system of a country is ignored, without giving due weight to the “legal certainty” factor, a fundamental prerequisite for the correct performance of the economic operations of each level, from the normal activities of the savers to complex transactions on a national and international scale.

2) Secondly, there is a tendency not to pay due attention to the cost/benefit analysis linked to the currency, neglecting the risks connected to an unfavourable exchange rate, especially in periods of more substantial fluctuations between currencies of opposing short and long term prospects.

3) Another nasty surprise that can mortify the ambitions of a saver determined to play the investment card in a foreign land is the use “pro domo suo” by the builder of the advanced capital, with the relative possible indefinite suspension of the construction sites projects in case the funds are exhausted. Many buildings or renovation projects begin and then are abandoned midway through.

4) On the wrong foot, moreover, those who are about to conclude a business abroad ignoring in full or in large part the impact of taxes and heavy taxes on economic operations and on the ordinary management of the assets for which they intend to become owners, there are nuances that are anything but negligible in one or the other current tax model.

5) There are many cases in which the less attentive investor underestimates political stability, economic development and other factors that make some destinations more attractive than others, taking into account the strict law of supply and demand.

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On the basis of these premises, the field of choosing a safe destination where to direct one’s repossessed property investments is complex but incredibly important.

Relying on professionals who can manage not only the purchase and resale operations, the financial aspects and the complete management of the property is today essential if you want the borders to no longer to be an obstacle to cross-border investments.

If you’re looking for repossessed properties in the UK to get started with your investment journey, please feel free to browse our website. Alternatively, for any more questions that you may have about repossessed properties, please get in touch on [email protected] or visit our Facebook and Twitter social media pages.

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