Get Rid of Pitfalls When Buying Property Abroad Once and for All

They say that ‘to be forewarned is to be forearmed’ and so the best way to get rid of the main pitfalls when buying property abroad once and for all is to be forewarned about all of them so that you can prepare and guard against them.

In this guide to the top ten buying abroad mistakes and hazards that you could possibly encounter we will outline the potential pitfalls and show you how to guard against them so that your buying property abroad experience is safe, pleasant and secure.

1) Overstretching yourself financially – before you even begin seriously looking for a place to live, holiday or retire abroad you need to sit down and work out exactly how much money you have and are in a position to spend on a property abroad.  If you are going to be relying on an overseas mortgage or on a re-mortgage of your principal residence speak to lenders about how much you will have to play with and ensure you can keep up monthly repayments.  You do not want to overstretch yourself financially speaking by taking on a relatively illiquid asset in the form of a piece of real estate overseas.

2) Not using an independent solicitor - not only do you need a lawyer or solicitor representing your interests when you buy abroad but you need one who is independent of the vendor, sales agent or developer and you need one who is experienced in conveyancing.  Preferably use a local lawyer who speaks English or be prepared to pay for a translator.  There is a lot that can go wrong during a property transaction and your independent solicitor is the one who will protect you.

3) Assuming everyone is honest - do not assume that just because someone says they are an estate agent, a lawyer, a surveyor or the rightful owner of a property that they are telling you the truth!  Check each and everyone’s credentials, qualifications and licenses and insist on seeing proof of a buyer’s right to sell or insist that your solicitor researches their right before you part with any cash.

4) Buying pretty much sight unseen - some people are happy buying off plan after seeing the location their property will be built and similar examples of a developer’s work – fine - but other people buy off the internet reserving a house or apartment without even meeting with the developer or vendor or visiting the country!  If you enter into such a dodgy arrangement chances are incredibly high that things will go very badly wrong for you.

5) Being overeager to part with cash - do not sign a contract, pay a deposit or agree to anything until you and your lawyer are happy with everything!  Some people are pressured into putting down a non-refundable holding deposit before they are emotionally ready and before their lawyer has ascertained that all is in order with the property and the vendor’s right to sell it…take your time, do not rush into anything, the world is not going to run out of real estate any time soon.

6) Looking at the price not the quality - if something looks like a bargain you can bet your bottom dollar that there’s a catch!  Additionally, don’t be trying to get too much for your budget; where you find a home that seems to have it all for a very low price it’s highly likely the build quality is shoddy or there is some unseen issue with the property, the land or the title deeds.

7) Cutting corners - if you’re buying a property abroad that requires remodelling or renovation don’t cut corners when it comes to getting in proper surveyors, architects and builders…the money you save you will spend over and over in the long run when you have to patch up shoddy workmanship and get new people in to finish a badly left job.  If a job such as a renovation project is worth doing, then it is actually worth doing properly.

8) Forgetting buying and ongoing costs - the price of a property is not the only money you will have to pay out when buying a home abroad.  You will have solicitor’s fees, agent’s fees, taxes and additional expenses when buying - and then ongoing there will be things like property taxes and rates to pay as well as anything from management fees for the upkeep of communal areas, insurance, service charges etc., etc…don’t forget about all of these expenses and try and get a feel for what they will be before you buy so you can ensure you are not overstretching yourself financially.

9) Forgetting about ongoing accessibility - while you may easily and cheaply have access to a given location today thanks to a single budget airline reaching a remote airstrip near your home, what if that company closes the route or goes bankrupt…have a back up plan and ensure a property is always going to have decent accessibility otherwise you’ll never visit it and it will become a millstone around your neck that you cannot enjoy or even resell.

10) Putting off making a will - and finally, the laws of succession differ from nation to nation so you have to speak to a lawyer before even committing to buy to ensure you’ll be able to will your new home as you so wish.  Having understood that your needs and wishes can be met and fulfilled, get a will drawn up immediately to secure the ongoing interests of your heirs.