Buying a home overseas

Should you be buying?

Selling a house in the UK is relatively easy and cheap, yet the same is not necessarily true in other countries. In some countries local registration taxes could mean that the house has cost you up to 10% more than a developer is selling the same house for, estate agents charges could be up to 10 % more and banks on a private sale may only be prepared to provide a mortgage of up to 50% of your hoped for selling price. The net result is that if you come to sell you may only be able to realize half what it cost you (assuming a stable market), or not be able to sell for a very long time. So in some countries it is probably unwise to buy if you plan to return to the UK or relocate within your chosen country. Long term rental, which is far more common abroad, may provide a viable alternative. If you do decide to buy try to ensure that it is a house that you plan to live in for a very long time, which means careful selection rather than a rushed buy, or rent first to really assess everything locally.

Decide what you want

Your intention may be to buy a property in your new destination by a certain date. But what do you actually want from your new home? Have you, for instance, decided whether to go for a new build or seek out a character property? Have you worked out how many rooms it should have and whether or not you require outside space? And have you established what functions it needs to perform for you and the rest of your family?

If you don’t know what you want, others will often make assumptions and decide for you – especially in the world of property sales. Take some time to create a wish list and another detailing the things that you definitely don’t want. The more specific you are about your likes and dislikes from the outset, the higher the chance you’ll have of finding your dream home.

Your finances

Before you buy a property you may wish to consider:

° Your maximum budget. Bear in mind that if you’re going to use the proceeds of a property sale, the amount you eventually have at your disposal in your destination currency will change day-to-day, depending on the exchange rate. It’s therefore imperative to talk to a currency specialist to ensure that your proceeds do not decrease.

° All the costs involved in buying a property at your end destination (taxes, maintenance, solicitors, fees).

° When you’ll have access to the funds needed to purchase a property.

° How to finance the property - savings, UK remortgage, proceeds from the sale of your current property, overseas mortgage, off-shore mortgage and so forth.

The overseas property buying process

Every country has a different process for buying and selling property. By understanding the process, you can ensure that things are progressing quickly and legally. Don’t fall into the trap of unscrupulous property agents/developers - there are many out there. While trying to persuade you to buy, they’ll be your best friend and make you feel like a part of the family, yet when problems arise, they’ll quickly disappear.

Note: If you haven’t yet made arrangements to move into a property in your new country of abode, the OGC Resource Centre are in touch with a number of really good property professionals in many countries, thanks to our readers and to members of our team who have themselves invested in property abroad. If you need any help here, run it by them and they may be able to point you in the right direction. Just call 0207 898 0549. There is also plenty of information relating to buying property abroad in specific locations - including France, Cyprus, Greece, Italy and Portugal.

Kim

The Overseas Guides Company

http://www.emigrationguide.com/