Buying Abroad

Summary: If you're considering buying a second home in the sun, a home from home abroad or an investment property overseas and you're in a hurry to get started, these top 10 tips about buying property abroad should set you off in the right direction.

With over a million Brits owning second homes in Spain and France alone, and figures from the Office for National Statistics recently revealing that around 200,000 Britons go overseas yearly with the intention of remaining for at least twelve months, it seems the passion for buying that dream home abroad is not abating one bit.

In fact, since average house prices in the United Kingdom have risen by 100% since the turn of the Millennium and mortgage lenders with friendly interest rates are actively encouraging the average British householder to turn their built up equity into real hard cash, more and more are buying abroad fuelling an overseas property boom.

And it’s not just the British who are obsessed with seeking out their little corner of sun drenched heaven on earth.  Many Northern Europeans and Americans are of the same frame of mind - looking overseas for investment real estate or for a holiday bolt hole.

If you’re considering buying a second home in the sun, a home from home abroad or an investment property overseas and you’re in a hurry to get started, these top 10 tips about buying property abroad should set you off in the right direction.

1) Legal Advice

Legal systems differ from country to country so never assume that you understand how exactly the entire house purchase process is going to work, and never expect things to necessarily go exactly your way!  To be assured of the fact that your personal interests are being looked after and that you, your money and your property are 100% secure, legal and legitimate it’s essential to seek independent legal representation in the country you’re considering buying property in. 

This is especially true if you’re buying property in a country where you do not speak the language.  You will be putting your name, signature and bond to contracts and legally binding documents...and however pleasant and helpful the real estate agent or vendor are it’s in your own best interests to make sure you have a local lawyer who’s in your pay representing you at such times.

2) Build Times

If you buy off plan or you’re self-building or renovating abroad you need to factor contingency into your overall time planning.  Weather, seasonal pressures, holidays, availability of essential building materials - the list of factors that can adversely affect the build time of a house is almost endless!  Your builder may confidently assure you that your property will be completed by a given date, and yet, depending on where in the world you’re buying your property, the completion date is likely to always be delayed!  It’s just ‘one of those things’. 

3) Setting a Realistic Budget

Another factor, like time, that can often spiral a little out of control is the budget.  Often we’re told that we should add an extra 10 - 20% on to any purchase price for fees and taxes; that’s all very well, but actually you have to factor extra money into your budget for things like visiting your second property abroad during and after the build phase, extras like light fittings, curtains, kitchen and bathroom upgrades, the application for and connection of vital services, removal costs and/or furniture purchase costs, satellite TV installation, air conditioning or heating installation, car rental.  If you have a set budget limit it’s important to sit down and work backwards including all the potential extras and fees and then see exactly how much is left for your property purchase.  Don’t be caught out and seduced by the sunshine, set budgetary limits before getting on the plane!

4) Ongoing Communication

If you’re buying a brand new property abroad - either off plan or during its build phase - make sure you have some way of keeping in touch with the developer or managing agent.  Ask in advance about how often you will be kept up to date with progress, whether they can email or send you regular visual updates and what level of ongoing communication you can expect for them.  Buying property is a very big commitment - financially and emotionally - it’s important you’re not left in the dark, sitting back home wondering how on earth your investment is coming along.  Sort out your lines of communication before you sign on the dotted line and make sure you’re entirely comfortable with how the process will work.

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