Are you planning to invest in overseas property? Like any property purchase, there are challenges that you need to be aware of and address in order to protect your investment, but these concerns are amplified if you purchase overseas property. With that being said, there are lots of factors that you need to consider before finally purchasing in real estate abroad.
What’s your reason for buying real estate properties abroad?
Obviously, this one of the most important considerations that you need to pay attention to if you are interested in investing in overseas property. Whether you are purchasing for your own personal use, or as an investment, or possibly both – if you use the property for your own vacations and at other times list it as a vacation rental – this can have a significant affect on your budget. You have to consider all the financial decisions in order to come up with a financial decision that makes sense for your life, and your estimated return on your investment.
Financing and funding requirements.
Securing financing may be a more challenging task since it entails international laws as well as local currency terms. As a stepping stone, you have to make sure that you obtain “Agreement in Principle” before you move forward with your purchase.
Don’t forget about your tax liabilities as an investor.
Taxes also vary with respect to diverse real estate markets. With that being said, each country adheres to its own tax rules and regulations. This may require you to pay several costs which include transfer fees, stamp duties as well as rental revenue tax. Apart from that, there are also other nations that require homeowner to pay land taxes in line with mortgage conditions.
Know the value of local money and exchange rates.
It is also important to have an understanding of the currency market and the value of local currency that is connected to exchange rates. In many cases, it will be convenient to open a local bank account, so finding out which banks are local – and which will serve you (many banks will no longer open accounts for American citizens) is important as well.
Acquire an independent valuation.
If you are buying real estate in the UK, you should obtain an independent valuation (known elsewhere as an appraisal). This is very important in order to guarantee the integrity of the property. However, you should always bear in mind that paying small costs like this matters when it comes to the overall protection of your larger investment.
Address any language barrier concerns.
Regardless of whether you intend to permanently stay abroad or not, there is still a need for you to directly engage with international agents, lawyers, and others when it comes to buying overseas real estate properties. This could entail some concerns regarding language barriers both verbally and in any documents you may be signing or executing. With this, it is advisable that you take time learning the local language. In case you are planning to bring items from your own country abroad, determine in advance if you must have a Certificate of Importation.
Buying overseas real estate properties is a challenging task that can also be extremely rewarding. With this in mind, consider the factors given above in order to make your home hunt abroad a successful one.