5 Tips for Buying Property in Another Country

Whether you’re thinking of retiring abroad, snatching up a vacation property, or moving for work, buying in another country can seem intimidating. It is, however, definitely doable, as the over 6 million Americans living abroad can attest to. If you’re wondering where to start, take a look at these 5 important tips.

1. Investigate the market.

You’re probably familiar with the ups and downs of the U.S. housing market over the last 8 years. Other countries did not escape unscathed, and you can bet that none of their recoveries quite match up with ours. Keep an eye on the last few years of prices in the area you want to buy. While you’re at it, keep an eye on exchange rates to get the most out of your money.

2. Find a good translator.

Unless you’re already fluent in the language of the country you plan to buy in, you’re going to want to hire someone to translate for you, both in meetings and on paper.  Don’t sign anything that you don’t understand fully, whatever the language. Also, be careful of using a translator recommended by an agent or seller. You best bet is to hire an independent one.

3. Know the laws and regulations.

As complex as buying a home in America is, you can bet that it will be just as tricky overseas. Don’t make any assumptions about the laws and restrictions you might encounter. Some countries, like Switzerland, don’t allow non-citizens to own property, and in several other European countries, you may not be able to leave your property to whomever you choose.

4. Prepare to pay in cash.

Not all countries have developed mortgage industries, and in those that do, lenders and banks are much, much more conservative than in America. Often, you will be expected to pay in cash. If you can get financing, your options are going to be very limited and likely more expensive than anything you could get in the states. One alternative? Some sellers (developers especially) will be willing to negotiate a financing plan.

5. Be wary of developers.

Speaking of developers, if you’re buying a house that hasn’t been built yet, make sure to do your due diligence. Because the building doesn’t start until they have made enough pre-sales, it isn’t uncommon for these sort of deals to fall through or turn sour. Get legal advice from independent lawyer to make sure your contract protects you.