Buying real estate abroad can be a risky undertaking, and it is certainly not a task for the faint of heart. Whether buying a second home or an investment property in a foreign country, there are many essential factors to take into consideration, such as local legal practices, restrictions that apply to foreigners and much more.
Thanks to more favorable exchange rates and the relative ease of doing business and buying property elsewhere in the
European Union, the last few years have seen a surge in UK citizens buying property abroad, with Spain and France
remaining at the top of the list for real estate investors. However, more experienced buyers are looking even further
afield to more exotic destinations such as South Africa, the Dominican Republic and Thailand, among others.
If you’re looking to buy property abroad, you’ll need to feel comfortable with your decision, because the process
will likely tum out to be different than buying a house or investment property back home. A whole new range of considerations apply, including different legal systems.
Although buying property abroad presents a set of risks, it also presents a world of opportunity to those who do their
homework correctly to seek out the best deal. Whether you’re looking for a holiday home or an investment property, or if you’re planning to relocate permanently, there are many things you will need to think about. Consider these tips before you start hunting for properties overseas:
1- Investigate the Market
Unscrupulous companies peddling so-called investment properties lure less-experienced buyers into buying
off-plan developments that either are far behind schedule or, worse still, never built. If you’re informed on the
matter, you’ll already have heard the horror stories of people who buy off-plan property in Spain, for example,
only to lose everything they invested because the developers go bankrupt. If you aren’t familiar with such
things already, then now might not be the best time to start thinking about buying property abroad.
There is no substitute for getting a first-hand look at property market you intend to invest in. Buying something
remotely, in a place you don’t know, is risky at best.
Spend time researching the local real estate market. If you don’t get your own feet on the ground when searching for foreign real estate, you’ll likely end up overlooking Such important factors as local facilities, laws and customs.
2- Know the Laws
Different countries apply their laws differently. If you’re buying property outside of the EU, you’ll probably find the
process unlike what you might be used to back home. To protect yourself, become thoroughly familiar with any
local laws concerning foreigners buying property in that particular country. Being unfamiliar with the language can
al so complicate matters, so you’ll want plenty of local independent translator. You should be particularly wary of
potential scams Buying real estate abroad if there are no title deeds offered Off-plan properties being developed by companies without planning permission or companies with demolition orders in place. Properties that have any taxes or other bills owed, which are to be passed down to the buyer.
Many countries place a range of restrictions on foreign buyers and impose bureaucratic channels which can
complicate matters. You’ll need to thoroughly familiarize yourself with these restrictions and laws before you make
any serious decision to invest in the country of your choice.
3- Buy in Cash
As a foreigner, getting a mortgage in another country is often complicated, if not or impossible. Even if you can get funding locally, you’ll likely still be subject to certain restrictions that require you to jump through a
whole medley of bureaucratic hoops to get a mortgage. Many sellers won’t even be interested in selling unless you can pay in cash. On the other hand, lenders back home rarely are willing to give mortgages for property abroad, so
you’ll likely have to find an alterative source of funds.