The Real Estate Dream: How to Invest Abroad
Buying property abroad seems like such a good idea for a while – until you find out about all the challenges of getting it financed.
While the banks abroad are asking preposterous down-payments and interests before they agree to anything, those at home are reluctant to finance it and mortgages are generally unavailable.
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The dream might seem like it’s about to fall apart before it has even started – yet, so many have still been able to finance their plans.
Here is how they did it and what they wish they knew before embarking on the real estate journey, making yours a lot easier to navigate.
What’s The Benefit?
There are a lot of reasons to buy a property in a different market from that at home and, while some do it to have a holiday place they can return to a couple of times per year, others use it exclusively as an investment opportunity.
It doesn’t really matter how popular it has become the last couple of years either.
The process can still be a minefield, and you should think as far ahead as possible before making a decision.
This includes figuring out an end-goal, meaning whether you’d like to sell it later or on if someone should inherit it.
There are a lot of tax implications to the process of investing in properties abroad, after all, and you need to consider the ownership as well as the various fees related to the transfer.
Thinking ahead implies that you should also consider the property value.
Even if the value is rising at home, you won’t necessarily experience the same rise in the country you’re purchasing is.
Although global trends do occur, the market goes through independent cycles, and you’d want to make sure it’s not going to dip back down by the time you plan on selling.
Have several thorough looks at property sites in the country you’re considering, such as this one on new property launch 2019 and figure out what you can expect to pay. Read up on enough articles to form an impression of its future value as well, and talk to an estate agent if you’re unfamiliar with the country.
That way, you won’t risk being scammed – and you can look a bit more forward to making your real estate dream come true.
Consider Getting Professional Assistance
Sure, some people do this even when they’re buying property in their own country – but getting legal assistance from a professional in a country overseas can seem like a hassle.
It’s really important, though, and you might be able to find someone at home who knows the laws and regulations in the country you’re investing in.
It’s important to do this sooner rather than later so that you have someone representing your interests, and making sure that everything is done properly.
Plus, all legal documents must be translated to a language you understand before you sign anything so that you know exactly what you’re signing yourself into.
Another point to seeking professional assistance is, of course, that you should consult a professional real estate agent in the country you’re buying property.
Even if you’d don’t normally do this at home, it’s important to do it when you’re in a country you don’t know that well.
They can point you in the right direction and assist with anything that has to do with the purchasing process.
All in all, it’s going to make everything a lot easier on you. A real estate agent and a good lawyer that understands the process is alpha omega to making this journey trouble-free, in general.
Which Countries Should I Invest In?
Before you run off and invest your money in the first countries mentioned in this article, keep in mind that you should always take the political climate in the country into consideration.
Investing in an area that is on the brink of a civil war is, of course, never a good idea – but it’s also better to avoid countries that are starting to squeeze out foreign investors.
Even if the real estate market has been excellent for foreigners for a couple of years, it could be about to come to an end. You don’t want any new laws and regulations to affect your investment down the line so stick to those that seem reasonably stable, economically speaking.
With this in mind, you can find a couple of countries with a particularly bright future for their property markets; the demand in Germany, for example, has been very strong due to lack of investment alternatives, and they expect the prices to keep rising. There have been new building developments recently, on the other hand, and with more property available, you never know when the value dips.
Romania has a growing economy and real estate experts find that the country’s real estate market is bulking up across all sectors. This includes the office spaces, retail, as well as the regular housing market; when the economy grows stronger, the demand rises, and supply will most likely follow.
Buying property abroad is often a good idea but not always.
Do a decent amount of research before you make any final decisions and consider investing in a country that is not only stable and open to foreign investors, but also somewhere you’d like to spend a lot of time yourself.
That way, it will be a holiday home as much as a financial investment – and a place that your kids will be happy to look after and visit you in if you should choose to retire there.
Check out this article, for example, to learn more about the process of buying property overseas as well as a few more tips and tricks on what you should know before you get started.
It will help you to make an excellent investment decision, in other words, and might even be able to make a decent profit if you’d like to sell it after a decade or so or even pass it on to your children later on.
Have you invested abroad? Where? What was your experience? Comment below!
[a contributed post]