Posted on August 24, 2018 by
Buying abroad is an exciting venture, and can lead to all sorts of benefits and opportunities. However, there are also a lot of different factors you’ll need to consider in order to truly make your overseas purchase a success. That’s why we’ve created this handy guide to give you the vital information you need. Here are 10 tips for buying property abroad.
Find the right location for you
Firstly, you need to know where you’re looking. Pick a country, and then pick a specific location within that country. It might be somewhere that you’ve visited several times before, or somewhere reasonably close to home. Or perhaps you’ve chosen it based on the current property market. Whatever the reasons are behind your decision, just make sure it’s the right one.
Work out what you can afford
Sit down and work out exactly what you can afford to spend on a property without over-stretching yourself. You also need to know that you can actually afford the property after you’ve bought it.
You need to research every aspect of your property venture, including the location, the potential properties themselves, the current market, the processes involved, and the local establishments. Check out local shops, restaurants, and transport links before committing. Remember, when researching abroad ‘transport links’ refers to both local transport and airports. You also need to think about the transportation of your belongings. You may find yourself having to rent out an HGV yourself if moving to a location such as continental Europe from the UK. If doing this make sure when you rent that you get comprehensive insurance for your HGV to limit any difficulties in this already complex process.
Get a second opinion
Think you’ve found the perfect property? Make sure everyone else feels the same. Even if you’re going into this adventure alone, see what the people closest to you think of your proposed plan of action. They may notice things that you missed or strengthen your resolve that this is the right property for you.
Get your finances sorted
Of course, a huge part of investing in property abroad is being able to finance it. Some people choose to contact senior debt development finance companies for property development funding, whilst others choose to take out a UK based mortgage, or one in the local currency. This decision largely depends on the current exchange rate.
In some circumstances, a residential bridging loan can be more suitable than a mortgage, particularly if you need funds quickly or are only struggling to pay an initial down payment. Bridging loans are effective financial solutions with a fast turnaround, available from trusted providers like Glenhawk.
Get a solicitor
Be sure to take property legal advice when buying overseas. Find someone who knows the local area but speaks good English, and is also up to speed on the laws of the country you’re investing in. Personal recommendations from family or friends are a good place to start.
Buying property anywhere involves a lot of extra costs as well as the cost of the property itself. You need to think about factors like legal fees, taxes, stamp duty, transaction costs and insurance. But when you buy abroad there are even more factors to consider, so be sure to budget carefully.
Check through paperwork twice
Check all of the necessary paperwork carefully, and then check it again. Never make a payment without checking with your legal advisor and never sign a contract that you don’t fully understand.
Transfer money carefully
At some point during your buying process, you’re going to be transferring a large chunk of money, so make sure you do it right. It’s worth using the services of foreign exchange companies to see help you find the best deal in terms of exchange rates.
Now that you’re ready to sign on the dotted line, take a moment to consider the commitment you are making. Owning a property abroad is a huge responsibility and involves a lot of hard work. However, it’s also extremely exciting and can be very rewarding.