Downsize and Afford to Buy Property Abroad

As seasoned expats the ShelterOffshore team have probably seen and heard it all when it comes to buying property abroad stories - and yet it never ceases to amaze us how many relatively cautious individuals risk their entire life’s savings and whole financial stability and security by selling up lock, stock and barrel at home before buying pretty much the first property they see abroad in their overseas country of choice.

If you don’t want to run such a huge risk and potentially leave yourself high and dry one day down the line if you decide living abroad isn’t for you, why not downsize and afford to buy property abroad whilst retaining a bolt hole and maintaining a foot on the property ladder ‘back home?’

Downsizing was all the rage in the UK back in the 1980s – but instead of selling up in the Home Counties, buying an apartment further north and a pad in France for example, back then there was a fashion for trading in an entire lifestyle in the city in favour of a smaller and quieter life as a market gardener in the countryside! 

Nowadays we think downsizing in the UK is actually an excellent way to have a best of both worlds situation where you can retain property both at home and abroad.

If you have significant equity accrued in your UK main residence then this approach of downsizing to afford to buy property abroad is ideal for you.  You can consider selling up your main house, purchasing an apartment in the UK and a villa in the sun or doing it the other way around and maintaining a main residence in the UK in the form of a smaller house before purchasing a holiday apartment overseas.

By taking this approach you are effectively hedging your bets – in terms of real estate you’re backing two different property markets and in terms of your future you’re backing two separate locations so that if you ultimately decide one is not for you or one is most certainly more for you, you can then make a greater commitment to the preferred nation.

Before you decide to sell up, downsize in the UK and buy property abroad it is worth taking professional and qualified advice on your financial situation including any taxation liabilities from the sale of real estate as well as mortgage liabilities such as early repayment or losses for early encashment of any savings policies you want to put towards your property purchases.

Remember that whatever approach you decide to take – falling at the financial hurdle is the primary reason why expatriates fail to make a go of their new life abroad – so if you get your property priorities sorted out, you deal with your financial affairs up front and you do try your best to keep your options as open as possible you stand the very best chance of enjoying a best of both worlds lifestyle in your properties at home and abroad.