It’s often a complicated enough process buying property locally. When you buy abroad, this opens up all kinds of new complications. That said, it doesn’t have to be stressful – with the right amount of organisation and help, you can make buying a home abroad easy. Here are ten tips for buying overseas.
Define your long-term goals
First you need to decide what your property will be used for. Is it a home in which you live out the rest of your days? Or do you plan to sell again in a few years’ time? Is it a second home to use as an investment – and if so do you plan to rent it out to tenants, rent it out to people on vacation or simply do it up and resell it?
Having a clear understanding of your goals will help you to find the right property and the right mortgage. It may even help you to determine whether buying a property is the right decision after all – if you’re only staying abroad for a couple years, renting may be an easier option.
Shop around for the right mortgage
In most cases, you’ll need to take out a foreign mortgage in the country in which you’re buying. This has to be paid in foreign currency (although some lenders may give you the backup option of paying in your home currency if you aren’t able to meet payments due to a disaster).
There may be different mortgages for different types of purchase. For example, a vacation home may need a different mortgage to a property you plan to use as your primary home. You may want to read guides to foreign mortgages such as this Expatica guide to Spanish mortgages to better understand your options.
Be wary of fluctuating currency rates
A big issue when buying a property abroad is the different currency rates. When paired with a variable mortgage, it could make payments very hard to predict each month. Make sure to keep an eye on currency rates to get an idea if your currency is rising or falling. This could allow you to pull out early if need be, rather than waiting it out until the mortgage is so high that it’s practically unpayable.
Research into taxes
Property tax laws are likely to differ abroad. Some countries may have a land tax whereas others may have capital gains tax when selling. Meanwhile, if you’re renting out owned property to tenants, the income you’re earning will have to be taxed, which could differ depending on the country in which you reside. Researching into these taxes could ensure that all these taxes are correctly paid and that you don’t get caught out by an unexpected tax bill.
Hire legal and financial help
If you’re already getting scared by the idea of different currency rates and different property laws, don’t worry – you can always hire advisors to help you. A legal advisor could be useful for helping you to understand foreign property laws as well as handling the paperwork and checking that everything is legitimate. A financial advisor meanwhile may be able to help you get a mortgage and may be able to help you with taxes and currency conversions. In both cases, you may want to hire international specialists such as this international law firm. Having them to guide you through the process could offer peace of mind.
Consider hiring a translator
When buying property in some foreign countries, hiring a translator could be handy. This could be to deal with agents or translate paperwork. International financial and legal advice firms may already have translators they can call upon for you.
Consider if any other professional help is needed
Other professionals may come in handy during the process. To check the property for signs of damage and risks of future repair bills, it could be worth hiring a surveyor. You may also have to consider an international moving company if you’re moving your stuff over there. As for a property that you hope to rent out, you may want to consider hiring a property ladder to clean it and maintain it, as well as handing over keys. All this will need to be considered when working out your budget.
Use the internet to your advantage
The internet can be a big help every step of the way. Listing sites such as these rumah dijual di Indonesia could save you having to fly out and look round local estate agencies. It may even be possible to do property viewings over Skype. That said, you may feel that you still want to visit the property in person before buying.
Research the neighbourhood
It’s important that it’s in the right location. Do your research into the neighbourhood both by visiting the location in person and by doing digital research such as looking into local amenities, crime stats and school pass rates.
Make sure paperwork is supplied
The purchase of your new property should come with all the correct paperwork. This paperwork needs to be legally water tight. This is something that you’ll want your legal advisor to check.
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