Buying International Property Abroad

Buying International Property Abroad

Rule 1: Buying a home overseas is a big commitment; make sure that you have done your research. Careful planning and thought could potentially be the difference between success and failure, in what is a very competitive worldwide property market. It is also important to remember that despite some similarities, the buying process varies between countries.

Ask yourself, what am I looking for in a property? Are you looking for a new home, second home or holiday home? If you decide to use the property on a short term holiday basis, you may consider renting out the property when not in use to secure an additional income or cover mortgage repayments. Also, if you have decided to rent out your property, you should consider the local rental market. Would your property generate interest from renters, either short or long term? How many weeks/months would you need to rent the property out per year to cover the mortgage payment? If the payments are more than the rental income, it is not a worthwhile investment. Is your property in the correct location for rental? Think about climate, infrastructure, political stability, economic stability, ease of access for Europe and mass appeal. There are four different types of property available in the current investment market: Buying a resale, new build from a developer, plot of land or buy off plan. Make sure that you choose an option that suits your specific requirements. Preparation and research is the only way to protect your investment.

Ordinarily you will pay for an overseas property with foreign/local currency, so it is very important that you take financial advice so as not to fall foul of fluctuating exchange rates. I many countries it is possible for foreigners to gain a local mortgage, reducing interest rates and benefiting from fixed exchange rates.

Legal advice is vital, You need to find a lawyer that is a resident of the country that you are buying in. That way your lawyer will know the local market, speak the language and understand the national buying process. Also, make sure that all your documentation is translated into a language that you can understand by a registered translator, do not sign anything that you can't read.