Top Things To Consider When Investing in Property Abroad

by Greg on April 20, 2016

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Every year a large number of people embrace the idea of investing in property abroad. With stunning views in hot-spots round the globe, attractive and competitive overseas property prices and local estate agents that master a convincing sales pitch, it’s almost impossible to resist the temptation of buying property abroad.<
However, is it that easier to buy real estate overseas? Is it enough to spend a couple of weeks in a new city to spot our dream house and make the big decision?

If you have been considering lately the idea of investing in property abroad, then this article will be extremely helpful. Go on reading to discover the most important aspects you should take into consideration when investing in property abroad.

Know The Local Market + Choose Your Country Wisely

Whether you have money to burn or not, it is important to make a well-researched decision regarding in which country you’re going to buy your overseas property. It is a wise idea to research the local real estate market in depth, understand its current and undergoing trends so that you purchase your property at the best time possible.

Once the country is chosen, you need to narrow your search a bit further. In which city will you invest? Inland or by the sea? In which neighborhood? Farther from the airport or nearer to it? Is it a cultural center or a financial district? Does it offer plenty of things to do all year round or does it flourish during the holiday season and shuts down any other time of the year?

If possible, spend some time in the city you’re interested in to get to know the different districts and explore different possibilities. As you spot a property you’re interested in, talk to your wanna-be neighbors to learn about any potential disadvantages that the house or apartment may have (leaks, noisy neighbors, unsafe area, a discotheque about to be built a few blocks away, etc.). Remember that the more information you have, the easier it will be for you to make sure that you’re investing in the best possible property overseas.

As a general tip, look for somewhere that is currently enjoying growth and is set to continue to prosper. Dubai, for instance, is a great example of this. Even though its economy is oil-based, its late expansion is mostly encouraged by real estate and tourism.

Can You Really Invest in Real Estate There?

Not all countries are equally open to foreign investors in real estate. Some limit the purchase of property by non-citizens while others have strict restrictions and conditions in order to be eligible. Non-citizens in Australia for instance need to apply for approval at the FIRB and can only invest in new settlements or in properties that will be torn down and then rebuilt.

It is highly advisable that you do thorough research regarding this issue with legal firms in the country you are interested in to avoid scams and disappointment. Real estate agents can be too eager to sell property to someone living overseas and may not be as truthful as they should be.

If everything is alright, it is advisable that you have all your documents legally translated by a professional legal firm. It is essential that you understand every single word you’re signing your name against!

Work With Professionals

Whether you are buying real estate overseas as an investment or to live there when you retire, it is essential that you work with real estate professionals. They should be proficient in your chosen country’s laws and processes. They should be officially registered and licensed and they should be fluent in your native language and the local one.

It is highly advisable that your agent is a member of the new trade body NAEA International and, if you’re buying property outside the European Union it should be a member of the International Association of Real Estate Agents (ICREA).

Hidden Costs and Paperwork

It is not news at all that buying property in a new country is an expensive undertaking. That said, try to avoid as many nasty financials as possible. Research local property taxes, open a local bank account so that regular payments are set more easily. If you need financial aid such as a credit to do the purchase, make sure you receive proper advice so that everything works on your favor.

Once that everything is settled, you only need to rely on an international removals company that can help you relocate worldwide that can provide you with the service, advice and support you need to relocate home successfully.

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