Buying and Investing in property abroad has always been a good idea. This is particularly true when you consider that buying in a lower currency value country could lead to a larger property spread out over acres of beautiful land as compared to buying in the US.
However, it is not all fun and games. Buying international property is a completely new ballgame and you could be cheated. To prevent this from happening, here are a few general rules to follow while selecting and purchasing investment properties abroad.
Regulations Regarding Non-Citizen Purchases
This is probably the most important consideration while purchasing property abroad. Many countries prohibit non-citizens from purchasing property but there are loopholes that work around this basic rule. For example, Spain does allow international investment but only from EEC (European Economic Community) countries. For investors from other countries, there are time restrictions for staying in the country, or the property is leased (for 100 years or more) to the investor. Other countries like Singapore allow international investment but make them pay an extra 10% stamp duty on purchases.
Do the Research Yourself
It is not a good idea to buy anything unseen. Always start with research. There is a very good chance that someone else has already invested in this market and they might have written or blogged about their problems. Google as much as possible about the country, the local real estate market and local opinions before you visit the country.
Hire a Local Team and an International Team
Once you have decided to purchase property in an international market, make sure you visit the country, stay in the country and visit the cities you are interested in. Hire a local lawyer, accountant and real estate agent in the country to help you with the paperwork. Remember that local government rules, taxation laws and property laws are critical for your investment to legally be in your name. Make sure these rules and regulations are compatible with your country’s taxation and property ownership regulations by hiring an international brokerage team. As you have two teams working together, it will reduce your chances of a swindle. At the same time, it may cost you more in the term of brokerage fees and real estate broker fees.
Bargain Hard
No matter what the real estate agent says, make sure you bargain as much as possible to get a good deal. The real estate market is a buyer’s market and there is a very good chance that you might be able to negotiate a lower rate by acting uninterested in the deal. However, a word of caution; if the deal appears to be too good to be true, watch out for scammers. Try to schedule the purchase when your currency is at a higher value for the best benefits.
In Conclusion
Buying property in an international market is a good idea. You can use the home as a retirement option, to diversify your investment or just rent it out throughout the year for a steady income. However, make sure you follow every local rule and international rule to avoid scams and protect your investment.
