Important Factors to Consider When Buying Property Abroad

When you decide to buy property abroad, it is important to consider a range of factors to ensure it’s the best decision you’ll ever make.

Why are you Buying Property Overseas?

This may seem like a simplistic question, but it really helps to think about your decision and reason to buy property abroad. Are you selling up and buying an overseas property to live in permanently, are you retiring, is it a holiday home for your family and friends, or are you buying property overseas for an investment?

Decide what you want from your property abroad, and think about your finances. Whether you’re selling your property at home, downsizing, or relying on rental yield, get your finances in good shape which will ultimately give you a stronger buying and negotiating position when you come to look for your overseas property.

Do Your Research

You may have already decided where you want to buy property overseas, you may have a few ideas, or no clue whatsoever.

Whatever stage you’re at, it will be wise for you to carry out in-depth research into the country and think about matters such as taxation, economic climate, currency and exchange rates, accessibility to the UK, weather and the types of regions and locations you are attracted to. Really consider whether it’s the right country and region for you and your family.

There is a range of research sources you can use when buying property abroad. You can attend overseas property events and exhibitions where you can meet with and talk to experts on buying property abroad, read overseas property supplements in national newspapers and overseas property publications. Some overseas property publications are focussed on one country, such as France, Italy or Spain and can give you a real insight into living in that country and the types of overseas properties you can purchase.

Another great source is the many overseas property websites who give you specific information on purchasing property abroad, including tax and legal advice, financial and mortgage criteria, likely costs you will incur to buy property abroad, emigration rules outside of the EU. They also give information on the buying process, developer and agent contacts and details on overseas property for sale with price ranges that suit you and enable you to buy property abroad.

Legalities When Buying Property Abroad

You will need to ensure that you have completely protected yourself on the legal front, and it would be wise to employ your own independent property lawyer to ensure that your overseas property sales goes through smoothly and that no issues arise after the sale. The agents you are purchasing from may recommend a lawyer attached to their business or in partnership with them, however, it is much more reassuring for you to find your own lawyer that you trust and are happy with and to ensure act purely on your behalf.

Buying Property Overseas Off-Plan

If you’re buying a property abroad that is off-plan (that is not yet built) then protecting yourself against any legal pit-holes is crucial. Because the property hasn’t been built when you purchase it, you will not be completely sure of what you will be purchasing, so ensure that you have legal cover to cover what the developer is actually offering and to protect yourself should the developers go into liquidation.

Rental Guarantees

You may decide to buy property overseas that has a guaranteed rental deal that is offered with the purchase. It’s important to check with the developers or agents offering these guaranteed rentals what these deals actually include and what they will mean financially to you as the buyer. For instance, the rental guarantee could be loaded onto the actual selling price. It’s also wise to get your lawyer to check out the rental guarantee details, as the financial offer may not be as good a deal for you as it first appears.