Buying a property overseas may be a smart decision when you plan to move abroad at some point. At times, you may want to do it as a part of a business expansion initiative. You may simply want to take advantage of a lucrative investment opportunity in another part of the world. Whatever your reason for an overseas real estate investment may be, you can expect it to be a long and complex process.
There are issues related to the international purchase, while you may struggle to understand the foreign real estate market. Travel, taxes, and legal concerns are also a part of the deal. But it doesn’t mean that you should give up on your dream property. You can get on the right track by learning the basics of foreign real estate investment and understanding the specific regulations of the country you choose. Here is some helpful advice that can guide a smart investment.
Choose the location wisely
Unless you have a specific country in mind for relocation or business setup, you need to do thorough research to choose the destination. Researching your options on the internet is a good idea. Look for one that does not have complicated rules and norms for property acquisition by foreigners. It makes sense to understand the real estate landscape, whether you plan to resell for profit or invest for the long-term. If you plan to move there eventually, you must also know everything about the visa and citizenship processes. A check on the culture, language, and income prospects for immigrants is also a good idea. Choosing your location wisely will make the journey hassle-free and help your future plans too.
Look for local professionals to get you a deal
Buying a property in another country takes a lot of work and you cannot handle it without local assistance. It becomes all the more important if you are looking for a place in a less-crowded part of the country. For example, locations like Comporta, Alentejo, and Melides are the top choices for people looking to move to Portugal for a peaceful life. If you are looking for Comporta property for sale, the best place to get started is the internet. A local realtor has a good understanding of the Portuguese market and can guide you about the right decisions.
Look for someone you can trust to ensure that you get a legitimate deal with a clear title and complete paperwork. They will also have the best properties to show around so that you can pick a deal that works for you. Apart from finding the right agent, you also need to hire a local attorney to sort the legal matters and get your paperwork ready.
Understand the calculations
While collaborating with a local real estate agent gets you in a good place, you still need to do your homework with calculations. Start by deciding your budget because it will determine the location and size of the property you can consider. Once you have a budget in mind, your local agent can start hunting the options that match. Learn more about the square foot calculation criteria in the country. For example, the calculation is based on the indoor, air-conditioned space in the U.S. In some countries, square-foot measurements include both indoor and outdoor spaces such as balconies, patios, and walkways.
Find more about the property
Once your agent lists the options that match your expectations and budgets, you will want to know more about the property. Ask about the infrastructure and location and verify facts such as roads, public transport, and accessibility to the nearest markets, hospitals, schools, and more. It is easy to fall for a property that looks good with plans for infrastructural development. But never opt for ones that are still developing. Ask the agent to share pictures so that you have a good idea about the place before traveling abroad to seal the deal.
Seek advice from someone who is already there
It is a good idea to get advice from someone who has already bought a property in the same country. You will feel more confident about the deal when you talk to someone who has already done it. Such a person will have a good understanding of the landscape. They can also offer some helpful recommendations related to the choice of location. If they reside in the country you are considering, they may even drop in and check the place for you before you land there. It is wise to have an experienced person looking at the place and assessing the papers before you take the plunge.
Consult your tax professional back home
When you plan real estate investment overseas, you need to sort out your taxes and finances back home too. Americans buying property abroad have to comply with the norms of the Foreign Account Tax Compliance Act (FATCA) to be on the right side of the law. You cannot overlook the tax perspective of the investment because the IRS tracks your transactions. Seek guidance from your tax professional and stay safe. You will also need to understand the mortgage requirements if you plan to take a loan for buying the property.
Analyze the liquidity of the property
Liquidity is another aspect to consider when investing in real estate, more so if you are buying overseas. It is all the more crucial if you plan to sell for profit eventually. You should be able to sell quickly when you need to and get an attractive price as well. Locations with high tourism levels and safe living conditions are ideal from a liquidity perspective. Conversely, countries with complex laws and low buyer competition in the market will not be a good one from a liquidity perspective.
Real estate investment needs to be done with great care because it involves big money and several legal complications. You have to be all the more conscious if you plan to buy a place in another country because the risk only gets higher. Everything boils down to finding a local realtor you can trust to secure a safe and lucrative deal for you. Even when you have the best professionals handling the job, use your discretion and common sense before sealing the deal overseas.