Buying Property
Abroad? Great independent information about buying property
abroad!
Have you been
considering buying property abroad? Over the past ten years,
hundreds of thousands of people have bought their own property
abroad. There are many reasons for wanting to purchase a property
abroad, such as for a holiday home, a property to appreciate as an
investment, a property to move into to start a new life, or as a
retirement home. And with property prices having rapidly risen in
the UK, many people have found themselves in a position of positive
equity, against which they can readily borrow. This is also coupled
with a sustained period of low interest rates. What property you can get for your money differs
wildly from country to country, though property prices in the major
cities tend to differ less so. Generally, Portugal properties are
more expensive, like for like, than Spanish properties, and
properties in France are less expensive than in Spain.
There are many television programmes,
exhibitions, websites and magazines available in the UK giving
advice and tips and showcasing real estate in countries across
Europe and beyond. The favourite choices for a property abroad are
Spain, Portugal, France and Italy, but there are many other
countries offering great value properties including Andorra,
Australia, Austria, Belize,
Bulgaria, Canada, the Caribbean,
Croatia, Czech Republic, Cyprus (Greek and Turkish zones), Dubai,
Estonia, Germany, Gibraltar, Greece, Hungary, Ireland, Lithuania,
Malta, Mexico, Montenegro, Morocco, New Zealand, Poland,
Romania,
Slovenia, South Africa, Switzerland, Turkey and the USA.
The key to buying property abroad is to do your
homework on every aspect of the process, from finding the ideal
property for your needs, through to its financing and letting and
maintenance. By getting the groundwork carried out comprehensively,
the profit potential can be great from your property, both in terms
of return of investment (earnings from letting) and from it becoming
an appreciating asset.
Buying Property
Abroad - Things to Consider!
Make sure that you do not make a decision that you'll regret
later. Many people make rushed decisions, not taking enough precautions or not
investigating fully other alternatives, disadvantages or pitfalls.
The first thing to ask is what do you want from the
property:
Then ask what is the property will offer:
What type of property fits the above and your budget:
-
Apartment
-
House
-
Villa
-
Buying an old property to renovate
-
Building a new property
-
Buying an existing property ready-to-rent-out
-
Buying a property off-plan (ie before it is build by the
contractor)
-
Buying a managed development
-
Buying a shared or communal development
-
Buying a timeshare
-
Buying a holiday property bond
-
Part-purchasing (shares in a property)
-
Opting for a leaseback property
-
Number of bedrooms/bathrooms
-
Parking facilities
-
Swimming pool requirement
Other considerations should include:
-
Legal process to purchase property abroad (including
language barriers)
-
Fees & costs to make the purchase
-
Letting agent services (and tax implications)
-
Managing agent services (including maintenance costs)
-
Financing options
-
Planning and building regulations if renovating or building
new
-
Insurance premiums
-
Visa and permits required
-
Selling considerations, including capital gains tax payable
Buying Property
Abroad.
Tips For Buying In 2006? By:
Robert Horwood
Buying a property
abroad in 2006
When buying a
property abroad many people forget about the most obvious and
relevant point of all which is quite simply what do you want the
property to do for you? This simple factor could determine the
country and the area you buy in to. Are you looking for a short term
property investment? Are you looking for a long term regular income?
Or like most people are you simply interested in a holiday home for
you and the family?
There are two types
of property abroad you can buy. Off-plan and resale property.
Off-plan means buying a property abroad before it is built. A resale
property is simply buying a completed property abroad from a third
party. Both options have their advantages and disadvantages. Be
careful when buying an off-plan property as you can be sure that the
size of the property will finish off smaller than you imagined it to
be. It can also be a long time before the property abroad and the
over all development is completed. You can also incur problems if
the building is not constructed according to the original plans but
overall buying an off-plan property abroad can reap some fantastic
profits.
When buying a
property in Spain allow approximately 10-12% on top of the asking
price for additional costs such as lawyer’s fees, taxes and V.A.T.
The cost doesn’t always equate to 10% but allow that amount anyway
just to be on the safe side. Other locations abroad change
accordingly. For example in Dubai there are no taxes which makes
Dubai a very attractive investment property opportunity. If you
assume 10-12% as being the maximum abroad then you should receive
some change every time.
If you are buying a
property abroad to emigrate then you must check out the
infrastructure i.e. Hospitals, education etc etc.There are some
fantastic bargains in the merging markets such as Bulgaria, Romania,
Estonia and Cape Verde but it's no good living there if you have to
travel out of the country every time you have a health problem or if
it's an absolute nightmare to travel around. This is why Spain
always ends up being number one in my opinion because the
infrastructure is leaps and bounds ahead of many of the eastern
block countries. You may pay more to begin with but you receive far
more for your money long term.
If you want to buy
a property abroad for investment and rental purposes then think
about what appeals to the majority.
Is it close to an
airport? Is it close to the beach or local amenities? Is there
sufficient transport nearby? Are you able to rent the property all
year round?
If you are looking
for a rental income from your property abroad then spend time
finding a good agent.
www.d2rworldwide.com can give you advice on this subject. If you
can afford to do so then buy a cheap good looking vehicle which
could add extra value to the property both on rental and resale.
Always try to buy a property that appears to be spacious. The inside
colour makes a big difference which is something you can change
yourself. Never buy a property that doesn't have a view of some form
or another. Either a view of the mountains or the sea. The view can
compensate for the lack of space inside.
Always check the
surrounding areas for potential building projects as the last thing
you want to do is come back 12 months later and find the field next
door is a construction site. The chances are your tastes are not
that much different to other peoples so although you have to be
vigilant at all times don’t forget the basic rule. If you like it
then you can be sure that others will also. So buy a property that
you like in a country that you like and the rest should fall into
place quite nicely.
About The Author
Robert Horwood is Director of
http://www.d2rworldwide.com and
www.dreams2realty.co.uk both property websites specialise in
Off-Plan and resale investment property in Spain .This article comes
with reprint rights. Feel free to reprint and distribute as you
like. All that we ask is that you do not make any changes, that this
resource text is included, and that the links above are intact.
rob@d2rworldwide.com.
Thinking of Buying a Property Abroad – What you need to Consider?
by: Allison Thompson
Many people now
days are buying a second home abroad, say Dubai as either a holiday
location or because they have decided to relocate to that area due
to work commitments or because they are retiring and would like to
enjoy a bit more sun.
When people are
thinking of buying a property abroad there are a number of issues
you may need to consider before making that all important purchase
and I list below some of them.
1. How much capital
do you have available to invest in the new property and if you need
to obtain additional capital for the purchase will it be through
your current lender or will you be requesting it from another
source, say a lender in the country where you are looking to
purchase your property. If you wish to lend from a financial
institute in the country of your choice you will need to investigate
what percentage of borrowing you allow, in some countries you will
only provide them with an 80% loan, which means you will need to
provide the other 20% capital for your purchase.
2. The type of
property you are wishing to purchase? Will it be a town house, an
apartment or villa? Also what sort of location are you looking for?
Do you want to be in a gated community or a complex, the country,
town or village? Also what sort of facilities do you want close to
your property, such as shops, restaurants, bars, and sports
facilities?
3. Make sure that
you contact a reputable real estate agent, one who will be able to
provide them with all the necessary information on the property that
you are looking to purchase, including all building regulations and
planning permissions that should be held. Also this agent should be
able to put them in contact with a solicitor/legal advisor who will
be able to deal with the drawing up and completion of the contracts
of sale.
4. As stated above,
where possible request that the real estate agent provides you with
the necessary paperwork relating to the buildings legality. In some
countries an issue has arisen where people have brought properties
and then find that permission for the property to be built has not
been given and the consequences in some respects have ended up with
these people not only losing their homes but also all the money they
have invested in the property.
5. Another thing I
would suggest you carry out is research on any local customs or laws
for the region you are looking to move to, as in some countries you
may find their laws and regulations are not so relaxed as where you
reside now, say for instance you decide to purchase a property in
Dubai you will find that you are only allowed to drink alcohol
within the confines of your own home, in hotels or at a licensed
premises any where else and you could find yourself at the mercy of
the local police force.
Finally another
reason for buying a second property abroad that could influence your
decision is the currency exchange rates, for example you may find
that the money you have to buy a property at home, say a two bedroom
apartment will in fact allow you to purchase a three bedroom
apartment in the country where you are looking to purchase.
I hope the above
has given you food for thought and helps you when making a decision
about purchasing a property abroad.
Author: Allison
Thompson, with 15 years experience in the property sector.
About The Author
Allison Thompson, now lives in Spain and has 15 years experience in
the property field.
allison@inlandpropertyservices.com.
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