Guaranteeed rental schemes a con for investors

Budapest Guaranteed-Rental Scheme for Overseas investors a Con!!Many an overseas investor is lured by the promise of a guaranteed rental option on their property purchase, but is it what it seems?Richard Doleman, MD of EUInvest, and eumortgagelink in Dublin offers one such explanation:Clients are coming to us in droves asking about Guaranteed rental options on our properties. They have been lured by the advertising campaigns of certain developers, and think that its possible to negotiate the same option for all property. The reality of the market is that there is no guartanteed rental!!If you are being given a 2 year deal guaranteeing €500 per month, then you have been overcharged by at least €12000 on the property, so that they can get their money back. If they do manage to rent the apartment for you, then they will also make a profit on this. It a catch 22 situation, where the only loser is the client. Its important for the Budapest property investor to ensure that they are getting value for money on their purchase first and foremost. With a good investment, in a good, central location, will come good rental opportunities. If you ensure that you buy property in districts 1, 2, 5, and 6, you will have no problems renting your property.The rapid expansion of the overseas markets have drawn many an unscrupulous developer out of the woodwork. Currently developers are attempting to take large deposits and not returning them when the project falls apart from lack of planning permision. This has been particularly prevalent in the costas in Spain, where even now after all of the warnings, and stricter financial controls, unwary investors can very easily lose their savings.One thing that most investors forget when buying abroad is that they have different laws, say www.eumortgagelink.com . If they travel to purchase second hand property, they give it the respect that it requires, but many investors are extraordinarily naiive when dealing with developers of new projects. Many do not even travel to the site of the building, but buy over the internet or over the telephone. This will inevitably lead to disaster, and the big money available to the unscrupulous, has made it a minefield for the new investor. Secondly, they never get an independent market evaluation. I have found many investors coming to us to rent a property in budapest, where they paid up to double the market value, and expect an unrealistic rent. The moral of the story is, read the smallprint, and independently value what you are buying. this is no reason not to purchase in what is fast becoming the biggest property boom in europe, but it is a lesson to the unwary, if you wouldn't do it at home, don't do it overseas.

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