There are a lot of reasons for buying property abroad nowadays. Some people want to move to somewhere hot and sunny; some people see the opportunity for lucrative investment, and some people want a holiday home. When you’re buying a property in a place where you don’t even speak the language though, it can be daunting.
Don’t let language barriers and a lack of familiarity with the location put you off though. It takes a bit of bravery, and it is a risk, but it might just pay off for you! Here’s how you should go about buying property in a foreign country.
Finding a Property
My first tip would be to use an estate agent. I certainly wouldn’t recommend going it alone if you’ve never bought in a foreign country before and have little knowledge of the local area. Check the track record of the estate agent and compare fees before you choose which one to go with though.
When it comes to tracking down your specific, ideal property, you’re going to have to get out there. Don’t be tempted to view properties online from the safety of your home. It’s impossible to get a real feel for a property unless you’re out there in person seeing things with your own two eyes.
Planning Your Finances
Once you’ve found the right property for you, you’ll need to get a valuation. Don’t go ahead with a purchase until you’ve had an independent valuation carried out. You might get ripped off otherwise.
It’s usually a good idea to set up a bank account in the country where you’re buying. Then you can use a trusted company to transfer money abroad. Remember, there are lots of extra costs like lawyers fees and insurance to take care of on top of the cost of the property.
Getting a Mortgage
Getting a mortgage when buying a property abroad isn’t always the best option. It’s usually best to have your money in place before you think about buying a property. Of course, paying with cash is always the best option to go for. Unfortunately, not everyone has that luxury though.
You can try to borrow money from a bank back home and pay for the house abroad that way. Not many banks will let you do this though. The other option is to use a local lender in the location where you’re buying the new property. This is probably your best option if you need a mortgage.
Renting It Out
Renting out your property can be a great idea if you’re buying a property to make money. If the sales market isn’t great and you’re in a warm location, you could rent out the property to holidaymakers from all over the world, all year round.
Even if you’re buying the property as a holiday home, this can be a good idea. If you’re only spending a couple of months a year in the property, why not rent it out for the other 10 months? It doesn’t make sense to leave it sitting there empty when it could be making money for you.
Don’t be intimidated by the foreign property market. Take onboard these tips and take the plunge today!