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Buying a home abroad? What you need to know

Written by Posted On Monday, 16 December 2019 05:30

Buying a home abroad? What you need to know 

You might consider buying a property overseas. Maybe you’ve found a great spot or the idea of a place to retire sunny and warm appeals to you. It’s not hard to see the attraction of buying a property abroad. But buying a place in a different country is a brand new experience. Before you move to Andalusia (translated to Dutch: Andalusie) or Mallorca here are things to look out for when buying property overseas. 

Set a budget

It’s important to work out a realistic maximum budget. Check how much you can borrow. Find a local agency. He or she can help find a property that ticks all your boxes. Also, agencies have knowledge of the local market. It is also a good idea to learn more about how the cost of living is. What can you afford? What is your standard of living? When you are living abroad, can you afford a bag of Ted Baker tas or a wine cooler (translated to Dutch: wijnklimaatkast inbouw)? Make a financial plan before you leave. 

Check foreign ownership laws 

Countries can place restrictions on non-citizens who want to buy properties. Contact a real estate attorney. They know how to execute foreign transactions. Because you don’t want to find out that you can’t legally buy a home overseas after you’ve already moved in. 

Tax 

Check out the tax rules. There can be charged taxes when you buy a home abroad and when you sell it. You’ll need to know how it affects your financial plan.

Translate documents

It is important to need to know what you and the seller are agreeing to. Make sure you understand the words before signing. Translate it professionally in a language you are comfortable reading. Before moving you can learn the local language. It is easier to get around. 

Financing a home abroad!

If you have found a place abroad, you will need to make arrangements to pay for it. Most British banks have restrictions on lending on foreign properties since the financial crisis (2008). It’s common to raise the funds outright by remortgaging your UK property. It will depend on your circumstances if this is a sensible option. You also could consider using cash to pay for your house. 

Final word 

A holiday home or an investment property abroad van be very complicated. Culture, tasks, language, loan terms, and bureaucratic processes are always different in each country. Be aware of your legal rights. Contact a real estate agent to make sure that you know all the ins and outs of buying a property overseas. Make a wise decision, don’t hesitate, do your research before buying. 

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