Paradisestates Overseas have prepared this information with assistance from professional advisers and sponsors throughout to offer you reliable guidance on the important areas to consider when purchasing overseas.
Do Your Research
Buying a home in another country may be a lucrative but intimidating process if you don’t know what you’re doing. Fortunately, there is detail information available, and you may draw on the experiences of others to guide you. Obtaining information from different sources will assist you in developing a picture of what needs to be done. Doing your own research is essential because it ensures that you are doing the correct things and asking the appropriate questions along the road.
Did you know?
49% of people who bought abroad now rate their quality of life as excellent!
Consider this…
- Why are you purchasing a home in another country?
- How are you going to pay for your purchase?
- What are the fees for transferring money into and out of a foreign country?
- How can you make your relocation permanent?
- How do you make a rental income?
Understand the buying process
You should ensure that you understand how the purchasing procedure works in the nation where you intend to buy. Having a rudimentary grasp of the country’s legislation and tax consequences will keep you out of problems later. Many businesses provide free shopping guides with country-specific information. In addition to browsing online, you should attend exhibits where you may receive up-to-date information from specialists face to face.
Did you know?
7.5% of people buy without ever visiting the area
Seek independent advice
The Foreign and Commonwealth Office’s website has a variety of information designed to assist anybody considering living overseas. They provide contemporary and effective consular services to British nationals all around the world. Travel guidance, collecting your pension while abroad, and transporting your pet abroad are all topics covered.
Don’t let yourself get carried away.
It’s very cool to get caught up in the thrill of buying international property, but the same basic criteria apply to buying property anywhere. Use independent legal specialists to do these checks for you, which will involve determining who is selling it, where the property is located, and whether it really exists.
Protection laws
You should be aware that if you purchase a home in another country, you are protected by the Consumer Protection Regulation (CPR), which establishes guidelines for how brokers who promote the property to UK purchasers should act. More information is available on the Office of Fair Trading’s website.
Financing Your Property Purchase
Consider this…
- Is it possible to buy something with cash?
- Will you require a mortgage, and if so, how much will it cost?
- When and how much will you have to pay?
- Are there any other expenses, such as legal fees?
- Do you have a pension that you might use to invest in foreign real estate?
- What fees may you incur if you decide to sell later, such as taxes?
MortgageIf you need a mortgage to make a purchase, you have three alternatives. You can re-finance your UK home, obtain a new mortgage from a UK lender to purchase an overseas property or borrow from abroad through a specialized broker.
After you’ve decided on your budget and done some research, you may want to talk with all of the above to balance your alternatives and decide which one is best for you.
Did you know that?
You can now put your pension money into foreign real estate.
Investment in Pensions
There are currently a number of specialized intermediates on the market that can provide you with additional information on this. They will also put you in touch with an FSA-regulated Independent Financial Advisor who can go through this option with you in further depth and help you decide whether it’s suitable for you.
Foreign Currency
Foreign property purchasers usually neglect currency specialists, who mistakenly believe that the only method to move money abroad is through their bank.
Choosing this alternative might result in you losing a significant amount of money unnecessarily – the discounts provided by currency businesses can easily reach into the thousands of pounds for high-value transfers, such as the cash required to purchase a house overseas.
Did you know that?
When transferring money into a foreign currency, a currency business may save you up to £4,000 on a property worth £100,000 by offering an exchange rate 4% higher than that given by a regular bank.
Consider this…
When do you intend to purchase?
At the latest exchange rate, what is your budget in local currency?
What are the possible recurrent expenditures of buying a home?
How fast do you think you’ll need access to the local currency?
Fix Your Rates in Advance
One of the most significant benefits of hiring a currency firm is that they may work with you to get a favorable exchange rate for a future transfer. This means you can establish the price of a home you wish to buy and not worry about currency swings while you wait for the deal to close. The authority to lock in an exchange rate for up to a year is particularly advantageous if you make recurrent foreign payments. e.g., if you make a monthly mortgage payment in a foreign currency, you’ll know the cost in Sterling will be constant month after month.
Did you know that?
Some currency experts will allow you to establish a target exchange rate and then contact you to lock in the rates as soon as the market moves inside that range.
Legal Advice
If you purchase a home outside of your primary nation of residence, you should consult with an independent lawyer or solicitor. The purchasing procedure will most likely change from government to country, and your lawyer will be able to assist you with all of the essential chores for an excellent acquisition. Some of the duties that most attorneys will perform on your behalf include:
- All legal documents must be translated and interpreted.
- Deposit handling and placement, as well as extra costs
- Understanding and, if necessary, modifying contracts to protect your interests
- If you can not attend the final signing, prepare a Power of Attorney.
- Examining the searches and the final conveyance papers that will give you possession of your new house
When buying a house in another country, a few difficulties may arise. The most typical issues to look out for include buildings with no title papers, taxes owing on the property subsequently acquired by the buyer, and, in more extreme situations, properties built without planning approval must be destroyed. You should also try to search out what building work is designed in the local community, particularly in the area around the property you are purchasing, because any development activity may affect the price of your house.
Top Tip!
Seek guidance on residence and property ownership from a knowledgeable independent legal counsel who is fluent in both the language of the country in which you are purchasing and English.
Visiting the Property Location
Speak with agents who specialize in the field. Many of them are ex-pats who have been in your shoes and should be able to answer all of your queries.
Some businesses can arrange inspection trips to plan your whole schedule and cram in as much property as possible for you to see in a short period. These are ideal if you want to see a lot of property from a builder to evaluate their construction quality, completed projects, or how resale properties differ in size and character.
Important Tip!
Do not feel compelled to sign on the dotted line when on an inspection visit. It is customary to make your purchasing selection after returning home and having adequate time to evaluate your alternatives. You will also want your independent lawyer to review the document before you sign anything!
Renting a house in the area where you wish to purchase may be a very useful kind of study. You get to observe how the rental market operates apart from the large tour operators while researching the competition if you plan to rent out your home once you buy it.
Did you know?
While on vacation, two out of every three people locate their perfect property location.
Don’t assume that everyone will comprehend what you’re saying. You should learn the local language and make an effort to acquire essential words that will help you complete your purchase. Consider circumstances where you wouldn’t be able to wait for translation assistance, such as when you need to call an emergency plumber or require instructions to the hospital.
Don’t be afraid to speak out when looking for a home. Expat groups and social clubs will be teeming with individuals who will undoubtedly have interesting stories to share with you!
Moving In To Your Property
- How are you moving your stuff to your new home?
- Are your items insured when you arrive?
- Is there anything you need to buy that you couldn’t bring or didn’t already have?
- Does insurance cover the property itself?
- Are individuals who use the property covered against bodily harm if you rent it out at any point?
- What will the overall cost of the transfer be, including any unforeseen expenses?
Insurance
Most people have both buildings and contents insurance on our UK houses, which is true for overseas properties. However, it is prudent to protect yourself as much as possible so that if something unfavorable occurs during or after the move, you are not out of pocket.
A few specialized insurers provide both content and building insurance. Where international property policies differ from most standard UK policies is that some policies also provide personal cover for those using your property, such as as a holiday rental; this is essential if you are renting out your property for part or all of the year; without it, you may be liable if someone is injured. Contact many providers to get as much information as possible and locate the best coverage for you.
Shipping and removals
Many of us will take all or a portion of our things with us if we emigrate to another country. When deciding which removals business to employ, make sure you chat with many to get the greatest pricing and the best method to accomplish things. There are other alternatives, including sea or air freight, and the ability to group your products with those of other persons or businesses, which helps to reduce costs. The British Association of Removers (BAR) is an excellent location to start looking for new firms to collaborate with.
Costs
Make sure to budget enough money for the last phases of the relocation to cover the transportation of your old goods as well as the purchase of new ones, as well as the following insurance of both items and your new residence.
Letting Your Property
You must also ensure that your house has appropriate insurance for your guests, as well as structures and content insurance. In the long run, getting insurance through a vacation home expert might save you a lot of time and hassle. Will you have the time and language abilities to call out and acquire repair bids from local contractors if a water pipe bursts in your new house or the air conditioning goes out?
If you can afford it, a property management firm may be able to handle some of the day-to-day maintenance and repairs for you, but be sure you understand exactly what their service entails. It would be beneficial to chat with as many residents and neighbors as possible on basic property upkeep. Is there someone you could leave the keys with? What is the finest local cleaning service?
Once you’ve confirmed that you may legally rent out your home and that you have the necessary insurance, you’ll want to start marketing it to vacationers.
There are several ways to market your vacation property, including:
- Websites for Vacation Rentals
- Websites for Expats
- Local property managers
- The Internet of Things
- Family and friends
- Recommendations from former renters
Make a marketing budget for yourself so that you may promote your property as much as possible. If you’ve been prudent and are prepared to commit not just your money but also some of your time, leasing your property might be an excellent source of income.
Top Tip!
Have an open guest book someplace in the house with a space where visitors may write on their favorite local experiences. This is especially beneficial for first-time visitors who want to plan outings and visits to nearby sites; the more enjoyable their vacation experience, the more likely they are to suggest your property to others!
Preparing To Sell Your Property
Once you’ve decided to sell your home, it’s critical to make it appealing to as many potential buyers as possible. Making a few simple modifications might be the difference between a sale and a loss.
Think about…
- Keep the property neat at all times – this is especially crucial if you have pets or small children.
- Reduce the amount of clutter in your home as much as feasible – Pack all unneeded items in preparation for the relocation.
- Throughout the property, neutral color palettes are used. The colors of paint and decorations should be as inconspicuous as possible.
- Finish all of the odd jobs and DIY projects around your house – Buyers frequently believe that anything damaged or unfinished will need to be replaced, which might reduce the value of an offer.
- Define the room’s functions – If you promote your home as having three bedrooms, be sure you have three bedrooms (not two bedrooms and one study/storage room!)
- Clean up the outside – Make sure the grounds are tidy, the pools are clean, and the doors and windows are newly painted. First impressions are crucial.
- Is your home appropriately priced? – Look into other comparable houses in the neighborhood. How much did they sell for? How long did it take them to sell?
- Wherever feasible, seek the assistance of a lawyer – unless you’re fluent in the language, make sure they speak English.
- Decide if you will sell through an agency or privately.
Selling through an Agent
Agents will aggressively sell your home on your behalf, arranging viewings and liaising with possible purchasers. However, if you decide to employ an agency to sell your house in another country, you must first identify a few essential things before signing a contract with them.
- How long have they been in operation?
- Is this person a properly registered agent?
- What kind of commission would they demand?
- Do they anticipate a lone agent agreement? How long will it take?
- What is their marketing strategy for your home?
- Do they have any testimonials, or can you contact some of their previous customers?
A simple approach to find appropriate agents on Rightmove is to look for property in the area where your property is located and contact them through the website.
Selling on your own
Selling your house privately might be one of the most cost-effective options, but it will need more of your time and work. If you want to take this way, you must determine where you will promote your property:
Websites – Use search engines to locate the most popular website for local advertising. International websites will create interest from vacation home purchasers and those migrating from other countries.
Local Press – Most communities will have a local newspaper or magazine that is distributed to locals. Consider placing an ad or listing.
‘For Sale’ Sign – The board outdoors will bring attention to your home right away. Make sure it’s professionally done and includes all of your essential contact information.
Social Media – Request that friends and relatives advertise your property online via social networking sites such as Twitter or Facebook by forming groups, pages, or re-posting links to property data.