Whether you are looking for a permanent home, holiday home or an investment property to rent out, buying a property abroad involves a lot of planning and a lot of preparation. Unfortunately, if you skip these steps and jump into buying an overseas property without knowing what you are getting yourself into your dream home could easily turn into a nightmare.
To help you decide if now is the time to buy a property abroad we have put together the following questionnaire. Answer "yes" or "no" to each question, add up your answers and then match your total to the explanations below to find out if you are ready to buy a property abroad.
Do You Have What it Takes?
Do you have enough money to make a deposit or to buy a property abroad outright?
Do you have at least three possible mortgage lenders in mind for your property abroad?
Based on the local rental market, are you confident you could at least cover your mortgage by renting your property?
Do you know the cost of living in your potential area and feel confident you can afford it?
Have you tracked the local property market and feel confident you could sell at a profit in the future?
Have you spoken with a local solicitor about helping you with the legal side of buying a property abroad?
Do you speak the local language?
Do you understand the tax implications of buying a property abroad?
Do you know how to advertise for tenants if you plan to rent your overseas property?
Do you have a property manager lined up for your overseas property if you don't plan to live in it year-round?
Do you have banking arrangements set up for rental payments or property expenses for a property abroad?
Do you know the approximate cost of hiring tradesmen in your potential area in case of necessary repairs?
Are You Ready To Buy A Property Abroad?
Total up the number of 'yes' answers you've got and read below to see if you're ready to buy a property abroad:
1 to 4 Yes Answers
If you answered "yes" to between one and four questions then you are probably not ready to buy a property abroad. There seems to be a lot of practical items regarding buying an overseas property that you have not yet thought about or investigated. Give yourself some time to thoroughly carry out research on the overseas locations you prefer, as well as home ownership in these locations. Use these questions as a checklist for getting your affairs in order. When you can answer "yes" to nine or questions then you will be in a better place to begin seriously looking at overseas properties.
5 to 8 Yes Answers
If you answered "yes" to between five and eight questions then you may be ready to buy a property abroad. You seem to be aware of the amount of work required to buy a property abroad, and you also seem to have a good grasp on the basic, practical steps you will need to take in order to purchase an overseas property. However, hold off on taking any firm steps towards buying a property overseas until you can answer "yes" to at least nine of these questions. When you can do that you will have completed a great deal of prep work and will be able to feel more confident that you've addressed many of the major issues people face when buying property abroad. Pay special attention to completing research about cost of living to make sure you can afford to buy, and live, in your desired area. As long as you know this is true then you can move forward with putting arrangements in place to do just that..
9 or More Yes Answers
If you answered "yes" to nine or more questions then you are probably ready to buy a property abroad. You seem to understand the amount of work required of homeowners with properties abroad, and you also seem to have completed a number of the practical steps you will need to take when buying an overseas property. If you did answer "no" to any of these questions, review them and decide if you need to change them to "yes" answers before you will feel comfortable looking at overseas properties. This is especially true for items required after you find a property (solicitors, mortgage, banking, etc) as these are things that can often hold up the purchase of a desired property. Good luck with your property search!