There are many reasons why you may want to buy your dream home overseas. You may have found the best place to live or maybe you want to spend the golden years sitting in the sun near the beach. Buying a home in a different country is going to be a totally new experience and there are a few things that you need to take into consideration. Last time I was getting my hair extensions, my hairdresser told me about her house in Italy, and I just became obsessed.
The cost of living
Moving overseas can benefit you if you are choosing an area that has a low cost of living. On the flip side, you may pay more for the home but the necessities like transportation, medical care and food are cheaper than where you are now you may consider moving.
When you are looking for properties you should learn about the cost of living there compared to where you are living now so you can work out your budget accordingly.
Certain countries can place restrictions on the “non-citizens” who want to buy a property. If the country allows foreigners in, then you may be required to obtain a residence permit and register with a government agency before you can purchase your home. If you are unsure of the laws in that country, contact an attorney who will know all the information needed.
A tricky aspect of buying a home overseas is finance. Are you going through a foreign bank for the mortgage loan? Then you need to have a down payment and be acceptable to a high-interest rate. You may be required to purchase a life insurance plan so if something happens to you then you have cover for your mortgage.
Before you move to a foreign country you need to take into consideration the tax rules, they might have there. You may be charges taxes when you buy a home also when you sell a home to. There may be ongoing payments for tax that you need to make, which are known as property taxes. Know how buying a home overseas will affect your tax situation before signing. You wouldn’t get your fancy gel nails done without first reading the reviews right? 😉
Your Exit Strategy
Buying your dream property abroad will, of course, seem like the best thing ever. In some countries, homes can stay on the market for years. You need to factor in the local market conditions as you create your exit strategy which will ensure you don’t get stuck with a house that you want to move on from.
Before you go ahead and buy a home overseas it is important to be aware of your obligations and your rights. You can put together a home-buying team that will include an attorney dealing in real estate and a mortgage lender that knows all about foreign real estate buying. Be sure you understand how the investment will fit into your financial plan, which may impact your budget. You can use SmartAdvisor who will ask you a few questions about your goals and situation. This will narrow down the list of options to just a few fiduciaries that will suit your needs.
It is a big decision and you need to ensure everyone has taken time to think about all the considerations and everything that is involved and how much it is going to cost. You don’t want to buy and get over there only to realise it really isn’t going to work for your situation.