Important Things to Know when Buying Property Abroad

Buying property abroad can be an exciting thing and can open up opportunities for living in a different country and even renting to locals to get some extra cash flow whilst you stay at home. There are some important things to consider, however, if you are thinking of purchasing a home abroad.

Property Abroad

  1. Exchange Rates

Be careful to be aware of the exchange rate changes if you’re thinking of becoming one of the foreign homebuyers who purchase houses abroad. The smallest variation in the exchange rate can really damage the value of your hefty purchase. Consequently, that could make your property, or the money you have to pay on it, unaffordable and not worth the money you put into it.

  1. Be Cautious

Giving in and handing over that large deposit to developers who are pushing for a sale can be a very big mistake. Just take a deep breath and think it over before you make a decision. Make sure to seek impartial advice about the purchase before just handing over the cash.

  1. Have Your Paperwork

When renting or buying any property, not just abroad, you’lll need a lot of paperwork to prove you are who you say you are and that you can afford the property you’ve got your eye on. Make sure you have the licenses, planning consents and any other necessary paperwork before you sign anything. otherwise it will be a lot more stressful and dragged out then it has to be.

  1. Tax

You’ll have to pay tax on the property that you purchase. Make sure that you are aware of how much that you have to pay and that you keep track of not only the tax on the property aboard but that you’re keeping up with any financial responsibilities at home.

Mortgage Repayments

If you have a mortgage on a foreign property and you are making repayments in a different currency as some foreign homebuyers do, the lender must alert you if the exchange rate fluctates by anything more than 20 percent. This is because they can impact on your financial commitments on the mortgage. If this does happen to you, then the lender must give you the option to repay the mortgage in a different currency if that is easier for you.

Legal Advice

If you’re purchasing a property abroad, make sure that you seek legal advice from a lawyer so you’re aware of the situation. It is essential that this lawyer is impartial from everyone so that they don’t offer you biased advice. Make sure they have no connection to the seller, developer or estate agent so that your position is the most important to them.

It is essential that you are loaded with legal advice, prepared with the necessary documents and educated about the currency and exchange rate before your purchase a property abroad. Do not fall into a trap of fall of agreeing to a sell without knowing the full details, and make sure you have legal support to get you the best deal.