Buying Property Abroad
Our advice tips and hints concerning buying property abroad
The best place is to start buying a property abroad is from home
A significant proportion of us now dream of owning a place abroad. In fact recent surveys suggest the appetite for buying a place in the sun or snow seems set to continue with British and Irish Buyers firmly behind the wheel. One study carried out by Data monitor has predicted that British overseas property ownership is set to almost double over the next five years.
So how do you turn a dream into a reality? The first step starts at home you need to know your own expectations
Get you finances in order first
Try to arrange your mortgage finance 'in principle', before agreeing to purchase a property, or before signing any contracts and paying over a deposit. Overseas property buyers have a number of options to raise finance these include:
Raising finance at home
Using local overseas mortgage lender
Securing an overseas mortgage with an international mortgage provider
Use local financing from a developer
More on Overseas Mortgages
Never buy a home overseas unplanned whilst on holiday
This long term decision could lead well lead to long term regrets. We all know that everything is better on holiday and making a quick decision to purchase will leave you feeling that you may not done the right thing. What’s more you will stand to lose any deposits that you put down to secure that dream home abroad if you change your mind.
Be realistic with investment potential
Be careful with guaranteed rental incomes promised by developers. Some factor this into the price you pay for the property. So it pays to be realistic with the amount of expected rental income. Consider what you would do if you did not receive any rental income.
If you’re looking to buy investment property make sure you research the property market of the country you’re considering. Look at it from the points of view of stability, growth potential and the liquidity of the resale market – after all, it’s all very well buying a property that then increases by 30% but what if you cannot then sell it?
Consider factors that may increase the desirability of your potential purchase.
Increased accessibility to a region with for example a new airport or flights will help your investment grow. High rental demand from local renters or tourists can make all the difference to your investment .
More on Off Plan Property
Consider your tax position when buying a home overseas
Find out about both the local and overseas taxation liabilities relating to foreign property purchases rental income and subsequent sales. Taxation issues and liabilities change on a country by country basis some research before will prevent any unexpected surprises
Keep your cool when buying property abroad
A cool ahead is essential, ignore the pressure some agents may pile on you. It’s a good idea to see your chosen area at varying times of year. A self imposed cooling off period will make sure that you have not bought in haste. Remember there will always be another perfect property.
Compare like for like
Savvy buyers will always compare like for like so that they know that they are not paying over the odds. Research the market by using the internet to make sure you are really getting good value for money
Independent advice is the best advice
Always ensure that you seek specialist advice from independent Solicitors, Architects and Surveyors before considering a purchase overseas. They should be proficient in your chosen country's laws and processes and also know the specifics involved in buying a property there.
Legal advice when buying International Lawyers here
A room with a view.
A view is a major bonus from both the rental and the resale perspective. A sea view is top of most peoples list but rural or mountain views can be just as stunning. Nothing beats sitting on a balcony or roof terrace watching the setting sun. Beware though that views can change and your beautiful view could be replaced by a view of a new concrete apartment block. Check local planning regulations carefully!
Save money on currency transfers when buying property abroad
Plan your foreign currency transactions. Specialist foreign currency dealers can book rates in advance, obtain the best rates and save you money on regular transfers abroad.
This can extend your budget by thousands.
Consider the property out of season.
The property and area might look lovely in summer when all the restaurants and bars are open. But what about winter? Do all the facilities close? Does the area become a "ghost town"?
Investing in off plan property
One popular method of investing in property abroad is buy buying property off plan. Lower property prices, favorable exchange rates, tax incentives can make this type of investment very appealing.
Buying a property at the drawing board stage or pre construction can be very rewarding. It is possible to be an armchair overseas property investor and have no intentions of visiting the region. Property developer’s need the extra finance and can give some impressive incentives. Getting in early on a development can mean instant equity or profits once the property is completed
With all types of investment there is an element of risk I would always try too minimize this risk by thinking of an exit strategy. Who would buy my investment property if I cannot afford to keep the property? The best exit strategy includes the ability to sell to local and international buyers.
Author: Nicholas Marr CEO Homesgofast.com the overseas property portal
Buying Property Abroad Resources
|The Association of International Property Professionals ... or you are a consumer hoping to buy a property overseas, the AIPP’s work is important to you. ...
BuyAssociation - overseas property, homes abroad, UK property ... - 12 visits - 23/10/2007
|BuyAssociation offers impartial advice, articles, guides and podcasts about property overseas, homes in the UK
|Federation of Overseas Property Developers, Agents and Consultants. Real Estate. Property available in Spain. France. Italy. Greece. Caribbean. Florida.|