Nine things you must know before buying property abroad

Buying a house overseas in search of a different way of life is a bold decision that many of us dream of fulfilling one day.

Some home hunters might be looking for somewhere where they can holiday for large chunks of the year, while others may be more interested in finding somewhere permanent to retire.

Whatever the case may be, buying abroad is something which you should plan very carefully.

Researching property prices and property styles in your price bracket is simple to do on Rightmove Overseas.

Our resident property expert Miles Shipside, who himself owns a home overseas, has picked nine essential considerations to be aware of before taking the plunge.

1) Research, research, research

Make sure you consider several countries and assess where you might get the best lifestyle that suits you as well as the best value for your money. Good transport links back to the UK are important, while having other resorts nearby will make sure travel costs for you and future buyers stay reasonable. Ironically, many overseas investors like to buy in the UK as it offers a safe haven and has transparent practices, so it’s a good idea to see which countries might operate similarly to the UK.

2) Remember the risk to reward ratio

If you are buying property overseas as an investment (as many people have done in recent years), you need to bear in mind that big returns may come with significant risks. Be careful to consider the possible downsides to an investment property as well as the enticing investment numbers that could be achieved if all goes to plan.

3) Get your finances in order

Getting your finances lined up is important too, and if you’re borrowing, where is the best deal and what currency should you borrow in? Future exchange rate fluctuations can make this a very important decision. The rates do not need to move substantially to affect the value of your purchase. When you start looking, £100,000 may buy you a certain property, but a 10% drop in the value of the £ against the Euro, for example, may then put that property out of your budget. Could dual citizenship be an option, giving the benefits of both the UK and your ‘adopted’ country?

4) Get trusted legal advice

Getting trusted legal advice so that you can be confident of buying a property that has a proper legal title is paramount. This means the property can be easily sold again should you need to. Also, consider whether there are any costly extras such as legal fees, purchase taxes, tax on future sale, service charges for maintenance or local taxes. A low property price can turn into not such a good deal if there are high associated and ongoing costs.

5) Choose the right agent

If selling up in the UK, getting your own property ready for sale is part of the vital preparation too – including choosing an agent who you trust to get you the best market price in your desired timescale. However, also very important is making sure that an agent can dovetail your UK sale with your overseas purchase, with timescales being a key factor. When you’ve chosen your new dream location, make sure that dream becomes reality by carefully planning how to execute it with the right professional help.

6) Use an independent translator/interpreter

If you don’t have a sound understanding of the language of the country in which you’re planning to buy, make sure that you get all your relevant documentation translated by an independent translator and that an interpreter accompanies you to all meetings.

7) Be prepared to make contingencies

Consider drawing up a will in the country you intend to own your overseas property in, to ensure that those you wish to inherit your property and assets overseas actually do so, as inheritance laws abroad may differ to those in the UK. Having made all your enquiries, ask yourself if you are satisfied in your own mind that you can go ahead with the purchase of the property in question without encountering problems. If not, make more checks.

8) Don’t underestimate the stress involved with moving abroad

Buying a home overseas can be more complicated than you might think. One of the ways to make your move simpler is to ensure you have the right visas or permits to live in the country you are moving to. Some countries impose taxes for when your furniture arrives, so check these out beforehand, too.

9) Don’t rush

Finally, one of my favourite pieces of advice is this: don’t rush. Do all your research before you find a lovely property that might cloud your judgment. It’s easy to be tempted to take short cuts without due diligence. Many buyers purchase too much on impulse without assessing or visiting alternatives and their respective prices. Be sure to look at the economic and political stability of an area, as well as any hidden costs.

For more information on buying a property, visit our advice page here.