Top 10 things you should consider when you buy a property overseas
Making the decision to buy a property overseas is easy enough; but what about actually implementing that decision. At Moving Currency, we walk you through the main areas to consider when you decide to buy your dream home abroad.
Buying a property overseas is exciting!
1. Do thorough property market research
Buying a property overseas is a little trickier than buying one in your home country because you are less likely to be familiar with the market conditions. Whilst there may be property trends that affect the global market, there are also likely to be domestic issues that are specific to the country where you are looking to buy. Make sure you find out what’s happening and what has recently happened in your chosen location so you can be more certain of your choice.
2. Contact and create relationships with local estate agents
There is no substitute for having a competent and helpful person on the ground locally when you are looking to buy a property overseas. They can help you understand the local area, can look out for appropriate properties coming on the market and can arrange a live virtual tour for you. Having a local agent can also help smooth the process when dealing with the vendor’s lawyer, enabling your purchase to go through without problems.
3. Understanding the legal requirements
Buying a property in another country means you will need to get to grips with the legal requirements of that country. There may be extra regulations or laws that apply to non-residents which do not apply to residents, so make sure you take advice from real estate agents and lawyers who are used to dealing with conveyancing transactions from overseas buyers. The rules and regulations are too numerous to mention in this blog so it’s a good idea to visit the appropriate government website or a lawyer in the country where you intend to buy a property to see what you might be required to do. You may need paperwork such as a VISA or permit to purchase and live abroad.
4. Create a realistic financial plan for your property purchase
The actual purchase price of the property itself is only one of the costs that you need to factor into your budget. You will also need to think about local taxes, insurances, and lawyers’ fees, translation costs, service charges, maintenance and utilities costs, redecoration and refurbishments, removals fees and finally currency exchange. Add this all up and it’s wise to include an additional contingency of around 10% for any unforeseen items.
5. Getting a mortgage
You may be able to get a mortgage from your own bank for some countries, but in most cases, you may need to access specialist lenders overseas. A mortgage broker in the country where you are buying will be able to advise you and get you the best deals available to foreign investors.
If everything looks good at this stage and you have located your dream house, it’s time to move to point 6.
6. Engage a lawyer to help you buy a property abroad
It might not be a legal requirement to use a lawyer to handle your conveyancing overseas, but it can give you peace of mind that everything has been taken care of correctly. Choose your lawyer wisely – ask for recommendations from family or friends who have already made a purchase in your chosen country. If not, at least do your due diligence when selecting a professional to work with – check their qualifications and ask to see their testimonials from previous clients.
7. Use a qualified translator
Make sure you understand all the documentation you are given – have it translated yourself directly from the foreign language so you can be sure what you are signing up to. Don’t rely on pre-translated documents as these might contain different interpretations and always ask for clarification of anything you aren’t sure about before you sign.
8. Get independent financial advice
Conducting financial transactions in a foreign country can be complex, with many legal requirements and regulations to navigate. A financial advisor can help you set up your finances in the new country, including getting a bank account and managing your tax affairs. They can also help you get the best deals on foreign currency exchange by putting you in touch with specialists like Moving Currency.
9. Protect yourself
Remember that you won’t have the backing of organisations like the Financial Conduct Authority when you are buying overseas so make sure that you do your due diligence at every step and only engage with fully qualified professionals to help you avoid problems.
10. Moving Day
If you are shipping your belongings to your new home, use a reputable international removals company so you can avoid any problems on moving day. You may pay a little more for peace of mind, but it will be worth it.
Although purchasing a property abroad is not a straightforward as buying one in your home country, if you choose the right professionals to help you, your transaction should go through smoothly.
If you’d like to find out more about how to get the best deals on your currency exchange for your property purchase, we’d love to have a chat. Contact us on our UK number 0207 435 7052 or our USA number 516 548 6485 or email info@movingcurrency.com