Whether you’re ready to escape the dreary UK weather just for the winter or are looking for a more permanent exodus, there are some important considerations before deciding to buy property abroad.
Understanding the market conditions and regulations before buying real estate in another country is paramount. Getting a team of professionals to support you on the ground, and being smart and savvy when it comes to organising a mortgage and currency will save you money. Here are some important tips to consider before you decide to invest.
Understand the market thoroughly
A lot of market research can be done online, but speaking to someone on the ground will give you an idea of local market conditions. Understanding trends such as sales price, inventory, days on the market and number of sales will help you determine if it’s a buyers’, sellers’ or balanced market. The overall economy of the area, mortgage availability and regulatory environment will affect the real estate market too. Look at historical and real-time data, and direct any questions to local estate agents.
Understanding data and trends on prices, transaction volumes and days on the market will help you determine if it’s a buyers’ or sellers’ market.
Establish a team of professionals to support you
Just because you’re buying in another country doesn’t mean you have to be wide-eyed and innocent about the market: get the support of local professionals to help advise and guide you through the process. Your team of professionals should include an estate agent in the area you are buying, a lawyer for legal assistance and support with all legal matters pertaining to your investment, a tax professional to inform you about tax implications that may apply to overseas property transactions and an exchange specialist to ensure you are receiving the best possible exchange rate when you are paying a mortgage abroad.
To get a free quote for your currency requirements, speak to a trader at Smart Currency Exchange
Know the rules and regulations
Every country takes a different stance to foreign home ownership. Some countries, like Australia, don’t allow foreign buyers to buy existing properties and insist on new builds only. Canada has implemented a 15% foreign buyers’ tax in some cities for non-residents. Do your due diligence and research the rules and regulations in your desired country beforehand. Your lawyer and estate agent will be able to offer further guidance.
Be smart with your money
If you intend to pay your mortgage using UK funds, or would like to transfer a lump sum payment to your new country, using a payment specialist will save you money. It is important to explore your options and how you will make payments work logistically for you with regards to your overseas home or holiday property.