Investing in overseas property can be a fascinating proposition. Such an action could result in vast profits, provide you with a place to spend your downtime, or if you are lucky, both. However, before you go ahead with such a substantial investment, it is vital to consider whether buying a property overseas is the best choice for you. A topic that you can read about in more detail below.
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Make a considered decision
Investing in property overseas is a massive decision, and as such, it must be carefully considered. Indeed, where possible, take the time to visit the location you wish to buy in beforehand. Be sure to check it out in the offseason and peak season, too, as the difference between the two can be very marked.
Also, be sure to consider how easy it is to reach the property, especially from your current location, if you intend to spend any time there yourself. Homes close to international airports and good transport links are often best in this situation.
Additionally, you will also need to consider the other facilities on offer in the area. For example, investing in a beachfront property may mean that the purchase cost is higher than in another location. However, it also means you can charge more for rent or when you choose to resell, so it may be worth the extra investment.
Finally, be sure to give yourself some time in between deciding to invest in a property and putting down your deposit. Yes, you are likely to be under some time pressure, and your realtor may even talk about other people that are willing to go ahead. However, it’s much better to miss out on a property that may not have been 100% right than be landed with one that you haven’t first carefully thought through and have to honor all the debts associated with it!
Be mindful of your budget
While we are on the subject of money, another aspect of buying a property overseas that you need to be mindful of is your budget. Indeed, it’s vital that you begin the process by setting a budget, one that you can comfortably afford. Then when it comes to viewing properties, you will be much less likely to get carried away.
Also, be sure not to overstretch your investment by purchasing more than one property at one time. Indeed unless you are an experienced property investor and developer, getting used to running and paying for one is usually quite enough to be getting on with.
Finally, remember that the cost of the property you choose will not be the only factor to consider. There will also be others, including taxes, insurance, legal, and valuation fees. Unfortunately, these tend to change depending on location in which you are buying. Banks also tend to charge a commission for money transferred abroad, so that means you will need to look into this carefully before you go ahead. Oh, and setting up a bank account in the country where you are buying is a super smart idea as well.
Pre-arrange your mortgage
Once you have your budget set, getting a mortgage arranged in principle is the next step. It is always better to get your mortgage arranged before you begin your search. The reason for this is because it means you can act when you find the right property.
Of course, because things can be that bit more complicated when investing in property abroad, therefore it’s almost essential that you go through this step first. After all, you won’t want to put in all that effort and time and then realize there is no way you can get a mortgage and go ahead.
Educate yourself on the laws and rules of the land
If you are expecting the process of buying a property overseas to be the same as in the US, you are likely to be sorely mistaken. Instead, each country has its own rules and regulations about buying property.
For example, there are some incredible bargains on sites like the hdb resale portal that offer Singapore properties. However, because of the rules on public housing, only those legally resident in the country are eligible to buy the fantastic value apartments they offer.
Similarly, in countries like France, buying a property may also include taking on responsibility for debts associated with it. The good news is that an independent solicitor can help you identify whether this is the case. Indeed, if you want to ensure success in overseas property investment, it’s always a smart idea to consult an independent lawyer first. Preferably, pick one that speaks your first language to check for any legal issues that could arise.
Moving abroad to live in your property
Not everyone wants to inhabit the property that they buy overseas. Indeed, many choose to lease it out. Either as a vacation let or as a year-round home for a single-family or client.
However, if you are considering ‘upping sticks’ and moving overseas, there are some additional considerations that you need to make.
The first of these is to make your move successful. You will need to make an effort to integrate with your new locations’ culture. The simplest way of doing this is to do a quick Google search beforehand to find out about local expectations and customs. For example, in some places showing your feet’ soles is considered rude, while in others, heartily belching is the biggest compliment after a meal.
Of course, making an effort to learn at least the basics of the language is a brilliant idea as well. Words like ‘please, thank you, yes and no’ will be vital, as will being able to ask politely for things. The good news is that language learning is so much easier than it used to be. There are even apps for your phone that can make this task fun!
Featured Image by Dimitris Vetsikas from Pixabay