Buying a property abroad can be the concretization of a dream, as well a solid source of income.
In this guide we will cover info, hints and primary steps you need to know and take before investing in a real estate in a foreign Country.
Let’s put ourselves in the investor’s shoes for a moment: we want to try out different sources of revenue to maximize the odds of winning. In other words, a diversified portfolio of investments is the key to reduce risk.
In this sense, buying a property abroad will allow us to find a wider target of people interested in renting, as well as give us the chance of exploiting the potential of a new market.
Nonetheless, as a foreigner investor, remember that you’ll be more exposed to frauds, scams, and overpricing.
To avoid these unpleasant scenarios, consider getting legal consulting or relying on reputable real estate agencies. Always ask for references, past deals and identity of the person you are dealing with.
These steps are an ordered list of priorities before buying. Follow them from one to four, in order to copy with the investment risk and maximise the success rate.
The motto here is “never bet more than you can afford to lose”. In other words, let the budget speak for you.
It might be worth to go a little off the budget to catch a great opportunity, but someone who really cares about his finances would never just spend more to earn more.
Choosing the right country to buy might seem like finding the needle in a haystack: your approach should be wide to narrow.
To do this, first, mark your purpose (living or renting out). Then check what you can get on average for your budget and, eventually laws and legal obligations related to that country.
While narrowing down your research to a specific region, you want to check if there are specific cities (and maybe specific neighborhoods) that could bring more stability in terms of security, properties’ value, and services.
Numbeo is a largely recognized and used portal that can help you with this part.
This will mainly depend on the availability for specific areas, but if you can choose, consider pros and cons when comparing different types of properties (villas, condos, etc.). When in doubt, go back to your purpose and budget to decide.
To explore appetible areas for your property abroad, click here.
Although countries like the U.S. and U.K. do not finance foreign property purchases, there are ways to start a mortgage directly overseas. Yet, they might not always be available for specific destinations and have quite high rates.
In this sense, cash payments are often the best option to buy abroad and opening an IRA can help you with that.
Here’s a final must-check list before starting the purchase process:
Ready to start? Click here to find properties listed in a specific country.
André Pitì
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