International Real Estate Search: How to Start
When beginning your international real estate search it is important to know your goals. Are you searching for another home, a way to diversify your investments, or a rental property for extra income? Are you aware of the laws for buying in the country you are considering purchasing in? When you begin international real estate search, it’s important to note that every country has different rules and real estate practices. As a prospective buyer, there are several key issues to ponder: ownership restrictions and laws, development regulations, tax ramifications, the current currency exchange, and political climate.
The first step is seeing if you are legally allowed to buy in the country. Some nations have only recently allowed foreign investment, or restrict it to buying trusts rather than physical property. Many nations restrict the types of properties, based on location and lot size that foreigners are allowed to purchase. If you are legally permitted to buy property, it is important to take several trips to the area. It’s also a more authentic experience to rent a house than stay at a resort. By living among the locals, you will have a better understanding of their culture and the realities of living in a foreign place. Proximity to public transportation, shopping, restaurants, and scenic views are all factors to consider for your home. A resort experience could hide these realities.
If after examining currency and deciding the investment will achieve your financial goals, it’s time to take a close look at the estate and tax laws in the country. Some countries have no taxes, while other have very high taxes. Other nations only make legal residents pay taxes, while some tax foreigners at a higher rate. Also\, look at the resale and death clauses in the selling laws. In some nations, if a property owner dies, the government divides the estate evenly among relatives, regardless of the will. Some nations seize the property upon death. Understanding local insurance policies and laws can also be a determining factor. Don’t assume that insurance companies based through the United States will cover your foreign properties. Each country’s regulations vary greatly. Some nations have no insurance making the total cost of any weather related or other disasters your complete financial responsibility. Other nations require insurance policies to allow foreigners to rent their properties. If you’re purchasing a historical property, you may need a different type of insurance. These financial realities can make buying in certain countries cost prohibitive.
There are risks to consider when searching for international real estate. Currencies and exchange rates can rapidly change, changing the value of your investment greatly. Changes in governmental regimes and legislation can change ownership laws. These changes could force you into hirer taxes or even to sell. The buying process can vary greatly by nation. Some countries function on a cash only market where no mortgages are allowed. Others may require payment plans or higher premiums because you are a foreigner. With each country’s regulations varying greatly it is important to understand the risks before making a decision.
Get more information about Offshore Real Estate Search and Buying Real Estate Abroad.
Processing your request, Please wait....
