Here are five tips you'll need to make your dream of owning property in a foreign country a reality.
1. Do your homework – Moving abroad has become more popular and with currency exchange rates and cheaper land rates in some countries the popularity is no surprise. Be careful, some countries don't allow foreign ownership. Switzerland is one such country. You'll also want to check with the U.S. State Department, or the equivalent in your domestic country, about the stability and safety of the country you want to move to. Be cautious of the property rights the country affords property owners and the local economy.
2. Get local help – Before you get serious about moving overseas, enlist the help of a real estate broker, preferably in the country you hope to purchase in, in order to get an inside track on local customs and obscure unfamiliar laws. Some countries are more than willing to let you buy there, but selling it later might prove a bit tricky.
3. Money talks – When it comes to finding mortgages overseas you may find yourself in a tough spot with little help. You would be best served to assume you can only pay cash. Some English-speaking countries and former colonies may be more receptive to offering loans to U.S. expatriates but in most countries, property transfers have historically been paid for in cash. Even if you are lucky enough to land a loan you should be prepared to pay as much as 40% down.
4. Check your title – In countries such as the US and the UK, when you buy property your title is researched and confirmed and a warranty title is issued guaranteeing that you are the only one with legal right to the property. This is not always the case overseas and the last thing you want is to have some 8th generation grandchild showing up staking claim to your back yard. Get a notary to help you read the title history and check for gaps or duplicate claims.
5. When in Rome – Bribing may be taboo in many Western countries but not so much elsewhere. It's often a normal business practice and may be your only chance to get the property you want. A real estate agent can assist you in knowing which wheels to grease. If you've skipped the broker, you can pay a visit to the Notary's office to inquire how many gifts you should pass around to ensure your transaction is processed quickly. Gifts range from $50 to $500 and sometimes as many as a dozen are required, but be aware – whilst this may be accepted practice, it can also still be a criminal offence!
Buying a home abroad becomes more of a possibility for the average expatriate every day. Careful planning of both your finances and your knowledge of foreign customs and laws is the key to a successful purchase now and a return on your investment in the future.
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