When you buy real estate that belongs to part of a community, you are buying more than just a piece of land or a roof surrounded by four walls. You are purchasing the environment, the amenities and the value of being in a wonderful location surrounded by like-minded individuals. To retain the value of your investment, or even to see it grow over time, you need to ensure that the real estate developer deserves your trust.
Here are just a few of the top things you'll need to know about any real estate developer before you invest in their properties.
Do They Have a History of Excellence?
No one wants to be the first person to invest in a new development put together by a brand new real estate developer. Thankfully, there are plenty of established options that allow you to work with developers who have a history of excellence.
ECI Development, the real estate developer behind projects like Gran Pacifica in Nicaragua, has been working on this particular community for 16 years. ECI has also developed a number of successful communities in places like Belize and Panama.
Since international real estate can be a sizable investment, it makes sense to research any developer you're considering and ensure they have a history you can bank on.
Do They Have Strong Ties to the Local Community?
Next up, make sure that your real estate developer has significant ties to the local community. The best developers will want to do more than just make money and leave town.
ECI Development wants to develop communities where residents truly feel like they belong, and they want to do it without harming the local residents, the ecosystem or the local way of life. This is accomplished by hiring locals to complete construction projects, donating large amounts of time, money and resources to local charities and improving the region.
Are They Prepared to Court Your Investment as Long as is Necessary?
If you think about buying overseas real estate like a courtship, make sure the real estate developer you're interested in is willing to put in the time and effort it takes to convince you of their quality. Reading a few pages of documents and seeing some flattering photographs can be deceiving.
Check out the property in person, ask questions and don't be afraid to stay in touch with the developer for as long as you feel it is needed before committing to the purchase.
Are They Financially Prepared to Follow Through on Future Promises?
There is often a reluctance among investors to question the financial information of a real estate developer. However, when construction is ongoing and amenities are promised for the future, it is your right to dig around into their financials.
Determine whether they are sturdy enough to follow through on things like new fitness facilities, infrastructure or any other additional communities amenities. Being financially secure also proves that they won't go bankrupt in the future, abandoning the development altogether.
Getting to know your real estate developer is a crucial part of deciding to buy international property. Like ECI, you'll want your real estate developer to be financially stable, be willing to discuss any elements of the community with you, display a strong interest in the local community and have a history of excellence.