April 7, 2009
Panama City, Panama
- When A Power Of Attorney Is Too Much Power…
- Why One Reader Chose The Dominican Republic…
- If You Continue To Wait For The “Right Time”…You Will Never Do Anything!…
Dear Overseas Opportunity Letter Reader,
Euro-Correspondent Luis da Silva provides Recession Buy #3, in the permanently popular Praia da Luz, Portugal:
“This is an opportunity to invest in recently refurbished and revenue-generating holiday apartments with a strong history of rental income,” Luis explains.
“We have negotiated a cash-back deal that allows you to purchase a fully furnished, individually designed apartment with a one-year guaranteed rental contract and the possibility to extend the rental contract for a further six years.
“This is a unique opportunity to purchase truly discounted stock in the heart of one of Portugal’s most popular family seaside holiday resorts.
“The development is:
- located in the heart of the tourist village of Praia da Luz…
- in a complex with tennis courts, heated indoor swimming pool, outdoor pools, children’s pool, restaurant, bars, and other facilities…
- less than 2 minutes’ walk from a wide expanse of beach, a main supermarket, restaurants, bars, a pharmacy, a local church, and other amenities…
- just 5 kilometers west of the historic town of Lagos…
“The resort features one- and two-bedroom Moorish-style apartments that have been recently refurbished to an elegant standard. This is a turnkey purchase.
“There’s 24-hour reception onsite, a concierge, maintenance service, and full property and rental management.
“Prices have been discounted, and units are available now from as little as 215,600 euro, including the high-quality furniture package.
“The fixed legal fees of 1,200 euro are also included in the cash-back offer.
“You’re buying with a one-year rental guarantee. This is a flat amount of 9,000 euro, which works out to a gross yield of 3.7% to 7.5%, depending on the unit.
“In addition, the developer is covering condo charges related to the use of the common areas, pools, etc. This is worth 1,700 euro per year.
“The rental income guarantee is renewable for a further six years. And you’re allowed four week’s personal use per year.
“Only 10 apartments remain from the original inventory of 25.
“Foreigners can finance to buy in Portugal.”
Current global market woes notwithstanding, this region of Portugal remains one of the most sought-after among Euro-sun-seekers. This is a good buy-to-let play.
“It’s common, when buying real estate in another country,” writes Venezuela Correspondent Don Ellers, “to give your in-country attorney a power of attorney.
“Often, in fact, it’s necessary. There can be contracts for intent to purchase, documentation for contracts after down payment, filings of documents with the local registrar, etc., etc….a series of signings that can stretch over weeks or months.
“It’s not realistic, often, for you to plan to be present yourself for every step.
“So you give your lawyer a power of attorney. This document allows him to represent you in your absence, to negotiate, and to complete and file any necessary documentation on your behalf, while you’re back home. It’s convenient and usually not costly, especially when you think of how much travel time and money you’re saving.
“But here’s a word of advice, something I had to discover on my own, because the first attorney I worked with when buying property in Venezuela didn’t tell me:
“In some jurisdictions, a ‘poder,’ or ‘power of attorney’ in Spanish, doesn’t only give the lawyer the right to represent you and to sign for the purchase of a piece of real estate in your name. It also gives him the right to sell the property in his name.
“In the wrong hands, this kind of power could be a big problem. I’ve heard horror stories from unwitting buyers…
“That’s why, in some countries, you need a second document, to remove the poder after the property purchase process is complete. You start the process to remove the power of attorney immediately after closing and taking title.
“If you let time go by without canceling the poder, your lawyer could have the authority to sell your home on. In fact, you gave him that authority. If this happens, you have little recourse for recovery…”
“Kathleen, I had to reply to your article, ‘When The Time Is Right?’ as I, too, over the years, have come across so many people like the guy from Tennessee you wrote about.
“Having been in the real estate industry for many years, the last 15 of them in Spain, I have had clients who have come back year after year, always intending to invest this time, but then going back home complaining that the property they saw the year before is now too expensive for them.
“OK, now we have had a correction in the market, but there are some people who will still hold back, hoping, worrying that, if they buy now, the price will drop still further and maybe they should have waited longer.
“I have just moved from Spain to the Dominican Republic. I know I am taking a risk, but, what the heck, you only live once, and if you continue to wait for the ‘Right Time,’ you will never do anything.
“I am planning to continue my real estate business here and am going through the learning curve at the moment, finding out all that goes on in the local market and how it operates. I think the DR has a lot to offer as a retirement country, and, although it has its idiosyncrasies and problems, it does have inexpensive property compared with other Caribbean countries, good access from several airports, a low cost of living, and a welcoming attitude to new residents.”
— Adrian Head, Dominican Republic