Having a home overseas sounds like an absolute dream. Imagine sunning in the French Riviera on your own property? It sure sounds wonderful. But, getting to that point might be much harder than one can imagine. Buying a house overseas demands a lot of financial liquidity, knowledge of local and foreign policies, familiarity with local and foreign taxes, research of housing markets and many more things. We know this is a lot to take in and a lot to do. So, we are here to help. Read our guide about buying a home overseas and you will instantly be more prepared for this challenge.
Buying a house overseas is the plan, but where should you make the purchase?
Purchasing a property overseas is truly a long-term investment. How should you choose a place where you would like to buy your property? Well, first think about the locations that you like. If you are not certain from the jump, chances are you will not change your mind later on. Once you chose a neighborhood or city start doing research. Hence, you must know anything and everything about that particular real estate market in your chosen country.
How to choose the proper area?
You must be clear what is the purpose of purchasing this very important piece of real estate. Are you buying a house overseas just, so you can occasionally use it as a getaway? Perhaps, you are looking to rent it in addition to just using it as a vacation place? Also, it is very important to clarify are you only looking to purchase a residential property or a property that can be used as commercial space. Naturally, with these many decisions to be made, there is always a risk. Risks are always enhanced with rental properties, so be certain you know what you are doing before you make a step forward.
Analyzing real estate markets is key
First, you must get familiarized with real estate trends in the past decade. Consequently, you will learn if there were any fluctuations in prices. In addition, to the past, future forecasts of the real estate market are crucial as well. Naturally, what is to happen is more important than what happened. Different markets can have different patterns of behavior at the same time. Yet, you might try to pull parallels. Never pull parallels between two markets, because no two housing markets are alike. Do your research separately.
Housing market forecast
Knowing real estate tips and tricks when buying a house overseas is not avoidable. One of the best tips is to research the real estate market forecast and learn what can you expect from a certain property. Still, many decided to skip this step and by doing so they end up overpaying or buying a nonprofitable property that won’t be worth squat in the near future. Certainly, this is exactly what you want to avoid.
International and local laws and regulations
Slapping you name on a deed is possible almost anywhere if you have enough funds. Yet, there are many legal strings attached to that action. To avoid any undesirable ramifications research not only local laws in an overseas country where you are looking to purchase property, but also be aware of your own laws in the county of your residence. More likely, then not they will not match.
International real estate agencies
Hiring professional assistance is the best thing that you can do when buying a house overseas. This is a great way to be sure that everything that you need during this investment and transaction will be covered. Another key point is the agent that represents you will make you a risk and return profile, which will provide you a lot of guidance.
Have separate legal representation from the hired global real estate agency
Hired agency most likely has a legal representative within its structure. Still, it is a good option to have a lawyer on your side that is hired separately from the real estate agency. This way you will know that he or she is representing only you and keeping in mind solely your best interest. It is wise to hire an attorney that is an expert in the field of international real estate. Your lawyer will review not only the final contract but also any other legal document or permit that comes your way. Lawfully this will your go-to person and somebody that has just your back.
The fluctuation of currencies and the global real estate market
Buying a home overseas implies that you will need to track another currency next to the one you are already accustomed to in your country of residence. It is not very likely that they will be the same. Currencies can fluctuate often. More importantly, when they do they can fluctuate quite drastically. Which would imply that currency exchange rates will also change? This can influence negatively your mortgage payment.
Moving personal items overseas
Moving anywhere is a huge annoyance and inconvenience. So, it is no surprise that moving overseas is even more stressful and complicated then moving locally. There are many methods used for overseas shipping. Most often than not air freight and sea freight are used for long shipments. If you plan well in advance, sea freight is the way to go. This method of shipment has a slow and steady pace. Which is great only if you plan on time and ahead. Also, this method is very cheap compared to air freight. For more details and quotes visit bfslebanon.com.
It is very easy to conclude that buying a house overseas is no joke of an investment. It will take up a lot of your energy, time and funds. Don’t rely only on our advice. You still need to know taxation processes, find translation services and many other things. Unfortunately, you are only getting started. However, the good news is you are on the right track.
Lisa Roberts is a long-time real estate expert. For the past two decades, Jack has worked for a large real estate company and he is an expert when it comes to investing in rental real estate. Currently, he lives in Brooklyn with his stay at home wife and two daughters. On the weekends, he prefers to spend time with his family, since on workdays he works long hours. Jack’s plan is to invest in rental real estate and retire early.