Buying Property Abroad

Step-by-Step to your Perfect Holiday Home

 

If you’re thinking of buying overseas, dip your toe into the following paragraphs:

 

Are you buying for investment or your own personal use?
Are you planning to spend time in your property, or are you buying solely as buy-to-let?  If you plan to spend even a few weeks a year in your property, you’ll want to have on offer the things that matter most to you – maybe golf, sea, restaurants, bars, sunshine, easy airport transfers, flying time etc. You'll also need to consider these if you're planning to rent out your home.

 

It’s a numbers game
If you’re buying for investment, number crunching is most important.  Some countries have more advantageous financial benefits than others – Italian property has no capital gains tax on profits, which creates maximum return on investment (ROI).  Check out Inheritance Tax, and you'll need a Will too.

 

Stability rate
Check whether the local government has a long-term strategy towards stability and investment.  Even more so, what is their stance towards developing tourism?
Increased tourism brings a demand for rental properties and this is good news for buy-to-let investors.  Are any new airports planned and will there be direct flights throughout the year to cater for summer and winter holidaymakers.

 

When in Rome ...
It often pays to take your lead from the local market and watching where they are buying.  This can give you a more stable and wider market when you come to sell.

 

Build a good ‘local’ team
You will need a good team around you to conduct negotiations and act on your behalf in various stages of purchase.  You may want to instruct a good property broker to identify potential acquisition targets.  You’ll also need a good English speaking lawyer to help you through the maze of buying abroad – usually quite a dissimilar process, using the 'Notary' system, from within the UK. Developers’ in-house lawyers look after their client, the Developer, so make sure you have your own trustworthy solicitor.  

 

Fools rush in …
Don’t let all the checks you would do at home rush out the window when buying abroad – try renting in your chosen location before buying to build up a complete picture of the locality, amenities etc.  Tourism is quite different to full-time living – ask yourself a few simple questions
a) Is the area being regenerated?
b) Is the infrastructure being improved?
c) Is the climate temperate?

 

Patience is a virtue
Emerging markets take longer to reach stability than perhaps you think.  Whilst the property market in the UK is mature, buying and selling property in other areas of the world may take longer.
 

Take a look at our Overseas Guide