Buying Property Abroad Tips

One of the scariest things we at ShelterOffshore have ever read in recent days is that Britons spend far more time choosing their next holiday destination than choosing the property that they’re going to put an offer in on!  The research comes courtesy of Abbey and it has inspired us to write what we now believe is an essential article – buying property abroad tips!

If you’re thinking of investing in a home overseas then don’t leave home - or put in an offer on a home for that matter - before you have read, understood and committed to memory (!) the following buying property abroad tips – after all, you’ll be spending statistically quite a bit more on a home overseas than a holiday overseas, therefore if follows that you should put statistically more time into your research process as well!

The research from Abbey advises that Brits spend about 139 minutes looking on the internet for a holiday and booking it compared to just 96 minutes (that’s not even two hours you guys!) examining real estate and submitting an offer.  To our collective way of thinking that’s a mistake.

There are certain processes that you have to go through to decide which property is right for you and the processes cannot be rushed.

Firstly you need to determine the purpose for buying a property – is it going to be for your exclusive use, for the collective use of a group of family and friends, will it be a jet-to-let where you make money from renting it out.  Alternatively you may be hoping to buy a property off plan and never even see it completed by reselling it for profit during the final stages of its construction…others might be contemplating buying a home abroad to live in for a while or to live in for retirement.  Each of these reasons can point a potential buyer in a very different direction in terms of the property they choose to match their buyer profile.

If you don’t believe us consider this – an investor hoping to let their property abroad out to holiday makers may well want a relatively basically built property within a development where there are communal facilities and amenities.  A retiree may well want a well built stand alone home well away from developments with communal facilities which generally result in lots of noise…see!

So, determine all your reasons for buying property abroad up front.

Next you need to think about the locations potentially suitable for your purchase.  If you’re buying a home overseas to live in full time, naturally you may well have a specific country in mind (if not, gosh you’re a risk taker!).  On the other hand, if you want to buy off plan and flip prior to completion you’ll be seeking an emerging market that is rapidly rising in terms of property prices.

Compile a shortlist of countries and then whittle it down to your number one choice before doing plenty of research into all areas of your chosen destination so you can select the best town, village, region or spot for your property purchase.

Think carefully about the most suitable type of property for you and your buyer profile – if you’re a retiree does that penthouse without a lift really make sense and if you’re looking to rent to families is a high rise wise, safe, practical? 

Next up you have to marry location and property type with your budget.  Your budget should be fixed bearing in mind the cash you have to invest as well as an agreed in principal mortgage.  Remember, in some countries you can’t get a mortgage so you have to check this out up front.  Never start making offers and bids until you have your finances well established…you could end up disappointed at best or facing a financial penalty at worst.  And another tip on this point is that you shouldn’t allow the sun to seduce you into extending your budget!  Basically an estate agent or developer will always try and push or pull you in one direction or another to suit them, so fix your budget in mind and stick to it, don’t be swayed.

Now, arrange a visit to the location you’re interested in – not a viewing trip – a visit.  Don’t go with a single developer or estate agent, how will you get a balanced perspective if you do? 

Travel to your location, orientate yourself over a couple of days and then and only then begin looking at real estate.  Make sure you’re comparing like for like and don’t be rushed into making a decision.

Finally, get local expert legal advice before you even submit an offer – you need to know the lay of the land in terms of the buying process in a given nation before you commit to anything.  If possible, give yourself a cooling off period of at least 24 – 48 hours after viewing somewhere you really like and submitting an offer to buy it.  Go with your head not your heart – you are after all making a substantial financial commitment when buying property abroad and you want to ensure you have covered all angles of the correct due diligence process before signing on the dotted line.

Further Buying Property Abroad Advice Articles

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