There are many reasons why people buy property abroad these days, you might be buying a second property to use as a holiday home, maybe you’ve found a job in a different country, you may have been posted overseas by your current employer or perhaps you’ve always wanted to move abroad and are finally taking the plunge. Whatever your reason for buying a new home abroad, chances are that you will need a mortgage in order to make the purchase. If that’s the case and you do need to raise the funds for your new home, it’s imperative that you get the right mortgage advice.
You may already have a financial advisor that you’ve been using for years and are comfortable with. However, don’t expect that person to be able to offer you the right sort of advice unless they specialise in overseas mortgages. It will probably be the case that they are not an expert in buying property overseas so it would be a good idea to find a professional that is used to dealing with overseas mortgages and would be able to offer you advice that is relevant and up to date.
The advice you’re given will depend upon which country you intend to buy a property in and also what you intend to do with the property once you’ve bought it. If you intend to use the property as a holiday home and have decided to rent it out to holiday makers for part of the year in order to help finance the purchase, you will need to make sure that you obtain a mortgage that will allow you to do that. You will also need to check the rules and regulations in the country where your property is to make sure that you’re allowed to rent out the property and ensure that you’re aware of any payments you will be liable for as a result of renting. You’ll also need to make sure that you’re aware of all matters that you would be responsible for if you are renting out the property – perhaps there are local laws that you would have to comply with as the landlord of a holiday home. You need to make sure that the rental income is not eaten up by any local charges that result as a consequence of renting out your property.
If you intend to live in the property on a full-time basis, you’ll need to ensure that you comply with the country’s laws on residency – do you need a permit? If you’re moving abroad intending to work there, you’ll need to find out if you need a work permit – this may be the case even if you are planning to work from home or run your own business abroad. It’s vital that you’re aware of all the legal implications before you actually begin to purchase a property so that you can be sure that this is the right decision for you. If not, you could find yourself wasting a lot of your hard-earned money while your dream of a new life abroad collapses around you.
Guest post by Debbie who writes on behalf of World First a foreign exchange company that guarantees the best exchange rates!