Buying A Property Abroad? ? Considerations
Many people now days are buying a second home abroad, say Dubai as either a holiday location or because they have decided to relocate to that area due to work commitments or because they are retiring and would like to enjoy a bit more sun.
When people are thinking of buying a property abroad there are a number of issues you may need to consider before making that all important purchase and I list below some of them.
1. How much capital do you have available to invest in the new property and if you need to obtain additional capital for the purchase will it be through your current lender or will you be requesting it from another source, say a lender in the country where you are looking to purchase your property. If you wish to lend from a financial institute in the country of your choice you will need to investigate what percentage of borrowing you allow, in some countries you will only provide them with an 80% loan, which means you will need to provide the other 20% capital for your purchase.
2. The type of property you are wishing to purchase? Will it be a town house, an apartment or villa? Also what sort of location are you looking for? Do you want to be in a gated community or a complex, the country, town or village? Also what sort of facilities do you want close to your property, such as shops, restaurants, bars, and sports facilities?
3. Make sure that you contact a reputable real estate agent, one who will be able to provide them with all the necessary information on the property that you are looking to purchase, including all building regulations and planning permissions that should be held. Also this agent should be able to put them in contact with a solicitor/legal advisor who will be able to deal with the drawing up and completion of the contracts of sale.
4. As stated above, where possible request that the real estate agent provides you with the necessary paperwork relating to the buildings legality. In some countries an issue has arisen where people have brought properties and then find that permission for the property to be built has not been given and the consequences in some respects have ended up with these people not only losing their homes but also all the money they have invested in the property.
5. Another thing I would suggest you carry out is research on any local customs or laws for the region you are looking to move to, as in some countries you may find their laws and regulations are not so relaxed as where you reside now, say for instance you decide to purchase a property in Dubai you will find that you are only allowed to drink alcohol within the confines of your own home, in hotels or at a licensed premises any where else and you could find yourself at the mercy of the local police force.
Finally another reason for buying a second property abroad that could influence your decision is the Cost of Living i, for example you may find that the money you have to buy a property at home, say a two bedroom apartment will in fact allow you to purchase a three bedroom Villa in the country where you are looking to purchase. By investing in the right property in the right area you can providing yourself with an additional income from rentals and a property that will incease in value over the coming years.
I hope the above has given you food for thought and helps you when making a decision about purchasing a property abroad.
About the Author: Ahmed Raz is a director of http://www.dubailiving.co.uk Which includes the informative Dubai Lifestyle and Property Forum http://www.dubailiving.co.uk/forum/index.php