Practical Information for Buying Property Abroad
Buying property abroad is becoming more and more popular and it is estimated that more than a quarter of a million Irish people may have interests in property abroad. Whether for investment, as a holiday home, a place to retire or start a new life, purchasing a property overseas can be a challenge but if you’ve found your dream location, it can turn out to be very rewarding (as well as offering good long term returns).
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Top 10 Tips
1. Understand the legal process of purchasing property overseas. The local legal system may be very different to Ireland.
2. If you are buying a property that will only be occupied for short periods each year, try to ensure minimal maintenance levels.
3. Make sure the estate agent is a member of a recognised body.
4. Be aware that in some countries, you can lose your deposit if you back out of a contract.
5. Verifying everything you have been told on inspection trips.
6. Ensure that the entire property has valid planning permission.
7. Many apartment complexes are community run so you may end up buying a share and also be responsible for communal maintenance.
8. If you are buying a holiday home, check to see what conditions are like in winter, as well as in summer.
9. Be aware of any local taxes and charges that you may have to pay annually on your property.
10.Planning rules vary from local council to local council in many countries. Always check for advice.
Getting Professional Advice
Before buying property anywhere, make sure that you get independent advice. Speak to people you may know who have bought previously in the area, work with someone with a good legal knowledge of the country where you are buying and read up on the location and the rules that apply there to the housing market.
Questions That You Need to Ask Yourself
- Can I afford this property, including annual maintenance and local taxes?
- Is it easily accessible from Ireland?
- How close are the nearest airports / port?
- How near is it to services / entertainment?
- Do I want it near the coast, ski resort or city?
- What is public transport like in the area?
- How close are my neighbours?
- How much space is there?
- Does the entire property have valid planning permission?
- Will I want to extend and how easy is it to get planning permission?
- What are my neighbours like?
- Who were the previous owners?
- Do the builders have a good reputation?
Buying property abroad involves the same questions as with a property at home, only remember the answers may need to be translated and you might find cultural differences result in a totally different approach compared to the Irish property market.
Costs
Always look to find out total costs of buying a property abroad – the price, any commissions, local taxes (stamp duty, annual council rates etc) and factor in the costs of travel for you and your family or guests to and from the property. You are likely to have to prove your financial position so make sure you bring all relevant bank paperwork with you.
Set up standing orders in a local bank account to meet bills and taxes. Failure to pay your taxes in some countries, such as France, Portugal and Spain, could lead to court action and possible seizure of your property.
Other Buyers
Before considering buying, talk to others who have bought in the area before. In popular areas such as Tuscany or the Algarve, these are not too difficult to find but the more you go off the beaten track, the fewer buyers you will encounter. Estate agents or surveyors in the area may direct you to previous purchasers.
Putting it in Writing
It seems obvious but confirm any arrangement relating to the sale in writing.
Buy What You Can See
Before purchasing, view the property. If it is off plans, look at the plans, the location and the developer’s past record. See what facilities will be available and what the local infrastructure is like.
Don’t Buy Straight Away
Even if you fall in love with an area or a house, give yourself some time before making the purchase. Will it be attractive at all times of the year? Never buy on an organised tour. Always take time to reflect before making a purchase.
Additional Information
Property disasters do happen and gullible foreign visitors can be prime targets so as a general rule, always go through established channels and always read the fine print. Don’t carry around large quantities of cash.
You can run into trouble if (as sometimes happens in many European countries) the property does not have full planning permission or if it has outstanding debts or local taxes owing on it.
Most problems for foreign purchasers of property stem from misunderstandings of the legal system or the language. So ensure that you have a good translation if your language skills are not up to standard.
Summary
Purchasing property home or abroad can be challenging and needs time and consideration. However, if you are looking to take the next step and invest in a property, why not join the 30,000 Irish people who have already invested in a property abroad. Whether you are looking for all year-round sunshine in the Caribbean or a ski lodge in the French Alps, foreign property can be an ideal investment and great way to get on the property ladder.
With a vast amount of destinations to choose from, and helpful advice there is no better place to start than on www.MyHome.ie.