Whether you’re looking for a lavish holiday home or an excellent investment opportunity, buying a property abroad for a lot of people is a dream come true.
But buying a home overseas is a huge decision and not one that should be rushed into. You need to assess all of your options. You need to choose a location with great care. You must learn about all of the legislation in the country in question. You have to look at the rental industry if you are purchasing for investment purposes. The areas of research and contemplation are vast. However, this article is here to help you with one important component, and that is international mortgages.
However, before delving right in, would you like to know where some of the most popular places to purchase a property abroad are at the moment? Let’s take a look…
France – France has a lot to offer in terms of lifestyle and alike, however one of the big pulling factors is the country’s record low interest rates.
Barbados – There is no capital gains tax here. No restrictions on foreign buyers. No taxes when buying and property is owned freehold.
Italy – The economy has been sluggish as of late in Italy however this has meant that you are able to pick up properties at lesser prices than you have been able to for a long time.
Florida – The United States has always been an attractive destination, however, the property market in Florida is one that is on the move at present.
South Africa – Certain areas of South Africa are deemed extremely attractive destinations thanks to their upmarket feel. Franschhoek is a classic example of this.
Buying an Investment
So, now you know some of the most popular countries for purchasing properties overseas, let’s dig a little bit deeper into buying property abroad as an investment.
This is a long-term investment solution. You need to pick the property and the area with great care. Look into the average rental costs for peak and off-peak seasons. You should also do your research as to whether the area attracts tourists all year round. After all, there are a lot of holiday destinations that only attract people for a set number of months out of the year. You need to be prepared for this. Ensure the property is in a location which has easy access to local amenities. You will need to look for a high-quality property management company as well. They will need to look after the property whilst you are not there, ensuring it is clean for all new arrivals.
A lot of people make the mistake of rushing into this type of investment. It is easily done. After all, buying a property is exciting, especially when it is in a different country. However, this is all the more reason to take your time and choose your investment with care. You not only need to consider the rental yields now but in the future too. You need to make sure that there is potential for the market to grow and that it has not hit its peak already.
If you are going to purchase a property abroad then it is always a good idea to consider an international mortgage. There are lots of different types of international mortgage lenders. Consider each one carefully. It is always recommended to seek the advice of professionals. They will point you in the right direction. After all, this is not a decision which should be taken lightly. Experts will review all of your options with you and provide you with all of the advice you require.
In addition to this, there are lots of different tools online you can use to get a better understanding as to whether you can afford a mortgage and how likely you are to be accepted. Check out this mortgage calculator as a good starting point. This should help you to determine whether or not you are going to be able to afford a mortgage. After all, the last thing you want is to be tied into a legal financial agreement, which you cannot afford to uphold.
Of course, when it comes to buying a home overseas, it is not only the mortgage you need to consider in terms of cost. There are many other expenses you are going to need to keep in mind as well. This is why putting together an accurate budget is a necessity. This should cover everything from the deposit you are going to need to accumulate to the legal fees you are going to have to pay. You should then add ten percent onto the total amount of money required just to make sure you are covered. After all, if there is one thing you can be certain about when buying a house, it is that there are likely to be some unexpected surprises, usually in the form of expenses, along the way.
So there you have it: the full guide to buying your first home in another country. More and more individuals are jumping on the property investment ladder via buying property abroad. If this is something which appeals to you, you must remember to make every decision carefully, especially when it comes to your international mortgage.Use the advice that has been provided above so that you have a solid foundation when it comes to investing in property overseas.