Are you buying property abroad? If so, there are some things which if left ignored, could leave you out of sorts and even out of pocket. This is not an exhaustive list, but gives you some reminders on costs and things to consider.
- Living or Letting
What is the purpose of your overseas property? If you’re not living in it 365 days of the year, then you could make some serious money by renting it out. Renting or letting an overseas property can be difficult, thankfully there are numerous agencies out there to help you. Timeshares are another option worth looking into. They involve buying the right to spend a certain amount of time in a property and is often less costly than buying a property.
- Lawyer Up
Ensure you get an independent lawyer to help you with your property. He or she must know the local language of where the property is situated as well as the property law of that country, in particular how it relates to those buying from abroad. They should also be based in the same country as your new property. If you’re looking to buy in Europe, then instead of a lawyer, you must use a notary. Notaries are governmental representatives who oversee property dealings.
- Handling Taxes
You may need to pay income tax both in the country abroad and back home if you are renting the property out to people. On top of those, you need to pay council tax in the local area and may be required to pay capital gains tax upon selling the property.
When picking out a mortgage, it is extremely important to consider as many offers as possible from different lenders. When choosing a mortgage, consider interest rates, the repayment period, set up fees, early repayment and cancellation fees. Be aware that inflation make cause changes to your repayment rates.
- Additional Costs to consider
Mortgage broker fee
Admin fee for banks
International bank transfer fees
Power of attorney if needed
Furniture, shipping and insurance
Utilities, bills and all taxes