If you are planning on buying a property abroad, whether for a second home, a holiday home to rent out or possibly a new home in which you want to live permanently, research really is paramount. Some countries may not even allow foreigners to purchase property, so it really is best to know before you go house hunting! Other countries do not allow land to be purchased by foreign individuals; therefore a Ltd company must be set up. Others have a limit of the acreage that foreigners are allowed to buy.

There are going to be many more differences between the UK and your new country; laws, policies, rights, title deeds, prices etc. Research is the only thing you can do to prepare yourself for these differences. Without thoroughly researching the property, area and country, you could be putting yourself under serious emotional and financial stress. This could be because suddenly lots of ‘hidden costs’ appear, or you lose money from not using a reputable company. Literally anything could go wrong when buying abroad. And the less prepared and clued up you are, the more likely you are to have problems. This is not to say that buying abroad is a bad idea; you just need to be very logical and practical, and don’t get carried away on a cloud of excitement.

If you cannot afford to buy the property outright, then you may be looking to get a foreign mortgage. If this is the case then you will need to do a lot of research into how the mortgages in the particular country work, and how much deposit is expected. It varies depending on the country, but mortgages abroad can require a deposit of anything between 10% and 70% of the purchase price of the property. So think that you will be able to put the same deposit amount down in Spain as you would in, say Morocco.

Traditionally it was seen as a sign of wealth to own a holiday home abroad. These days however, it is becoming increasingly popular to make a complete move to another country; particularly with young families and those of retirement age. More recently, first time buyers in the UK have been looking abroad, having been almost completely pushed out of the UK housing market due to rapidly rising property prices. This is not surprising when you consider what you get for your money elsewhere; for example in the UK, the average house price is around £160,000 and you could but a 2 bedroom cottage in France for around £60,000. Buying abroad is also now seen as more of an investment, with many choosing to buy-to-rent.

Like anywhere in the world, there will be factors that determine the price of the property you buy; things like area, reputation, number of bedrooms, amenities, proximity to shops/facilities. It is important to make sure you know what is where and how far away you are from things such as hospitals, police stations, chemist etc. If an amazing property seems too cheap to be true, find out why…it may be that it is a bad area or that plans for a new estate nearby have pushed the price down.

Take the same precautions you would when buying a property in the UK, and don’t get complacent.

To understand the full step-by-step process to buying a property abroad, read our Country Buying Guides.