Whether you are looking to buy overseas property or are looking to sell overseas property online, you will find the information given in this article very useful. We discuss the important issues related to buying an overseas property, which you should know about even if you are trying to sell overseas property quick, so as to get a better understanding of the buyer’s perspective.
Set the right budget and stick to it at all cost
It is important to know beforehand just how much you are going to spend on the overseas property and set a budget before you go looking for the right holiday home. Keep in mind that in most countries, you will need to pay around 12 to 15 percent more than the purchase price of the property, money that will be spent on paying property purchase taxes, stamp duties, estate agents’ fee, lawyer’s fee and so on. You will need to consider taking a mortgage to finance a part of the purchase, as it may not always be a good idea to exhaust your savings on buying an overseas property.
Find the right overseas property destination
So where should you buy the property? There are so many great places to buy an overseas property – Spain, Portugal, Italy, Thailand, Barbados and so on. The best way to choose the right place to buy a holiday home abroad is to visit it during the off season and decide if you like it then. Visit during different times of the year, summer and winter and decide how you feel about it. If you are going to live there full-time, you will need to know about the living conditions first-hand.
Find the right location
Once you have identified which country, city or region you want to move to, it’s time to identify the right neighbourhood from where to buy the property. Think about the things you would need, such as healthcare, schools – if you have young children, public transport and more. What about the taxi service? Is the place too noisy and too full of tourists? How close is it to the sea? Also find out about the cost of living, and if it is something you can deal with.
Are you paying the right price for it?
It is very important to pay a fair market value for the property. Do a price comparison of the other properties in the area and find out how much they are selling for, on an average. Also find out about the rental rates in the region, are they going up or down? How have the prices fluctuated over the last few years? Are there too many foreclosed properties up for sale in the market? Even if you find a really great home, you shouldn’t pay more than 10% over what comparable properties in the region are selling for. If there is a bidding war for the property, you should know when to bid and when to get out.
What about the cost of managing the property?
The last thing you want to do is to live in a place that is prohibitively expensive, regardless of how great the place is. Running two homes, one in your home country and another in a host country can be an expensive thing to do. You will need to take care of the local council taxes, house insurance, garbage disposal, electricity, water, internet, cable and other utility bills and so much more. Also, should you pay someone to look after the property when you are away? That will add to the expenses as well.
Get a lawyer
It is very important to hire a lawyer to help you with the property purchase. It will be very difficult for you to handle the paperwork and negotiations related to the property purchase in an overseas country, even if you speak the local language very well. Hire an experienced lawyer who can communicate well in English and has a good reputation with the expat community. You will need expert legal assistance to help you deal with tax and residency issues related to the property purchase.