Buying a Property Abroad

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   Are you interested in buying a property abroad for investment or as a holiday home? Or maybe you want a place to move to permanently, maybe to retire to retire to?
Hundreds of thousands of UK residents have done all of this, and interest from the rest of us never seemed higher than it is now!!
Maybe UK property prices have driven you to look overseas, or maybe you are attracted by the more relaxed lifestyle.

Whatever the case, we have some advice to get you started on your venture.

LOCATION,
LOCATION,
LOCATION

 Choosing a location

The starting point in deciding where to buy your property is the reason you are buying it.
If you want to buy a property as an investment (for rental), you need to choose an area where the rental market is estabilshed and buoyant.  So, if a city property, and you are looking for long-term lettings, check the rental market in local newpapers and with letting agents. If you are thinking of holiday lettings, look in the UK papers, and on the web, for signs of strong activity; a good test is to put yourself in the position of a typical renter, and see what you can find to rent.
If you want to buy a property to live in, then of course, if you are expect to work there, you should really only choose places where English is widely spoken. If you are planning retirement there, then this is not such an issue, as you will have plenty of time to learn (if you don't want to learn, then you will want to find places where there is already a large community of Brits!)
Some of the countries you will want to check out are:
France Large numbers of Brits already live in France, and certain areas do already have a British 'community'. Mostly these places are rural, and not really for working, so the focus is on holiday lets, unless you are planning a 'Life in Provence' type of retirement. Cheap flights from Ryanair and others have made these destinations even more attractive in recent years, although it is near enough to take your car over on the ferry, and drive to your location.
Spain Spain has proved the most popular retirement destination, and large numbers of Brits are already there, especially on the Southern coast. There are even English-language newpapers produced there.
The downside is that some people have been caught out by planning laws, and other changes which have affected their lifestyle and their property values.
USA As English is the primary language, this is an attractive option to many.  The lifestyle is relaxed, but in many ways is similar to the UK in the way people shop, the food they eat, etc.  You feel at home straight away.
The massive transatlantic passenger volumes will keep your travel costs reasonable, especially for popular tourist destinations like Florida.
Bulgaria,
Rumania,
Croatia		 As property prices have risen in France and other popular destinations, so attention has moved wider afield in Europe (and even to South Africa and South America).
These markets are less well known, so in these countries you perhaps need to more careful in making a purchase, especially in terms of property law, and its impact on you.

FINDING
IT !

 Finding a property

You will almost certainly want to use an estate agent to locate your property.  While the internet is a marvellous thing, and there can be private sellers advertising there, it will take a lot of time and effort.  With a good agent, in a popular area, you should be presented with several good options, to make a viewing visit worthwhile.

When you see a property that seems to fit your criteria, check it out just as you would in the UK.  How near to the airport? local buses? local shops?  if for rental, would the area appeal to a renter? (eg. near a beach) if for retirement, how would it look in the winter, and what would you do in your extended leisure time?

BUYING
IT  !!		 Making the purchase

If you want to go ahead with a purchase, do exactly as you would in the UK.
  • Employ your own solicitor, independent of the vendor and of the agent
  • Ask the solicitor to perform searches for any forthcoming changes or nearby planning applications, and to check thoroughly on ownership of the property (If it is Spain or Eastern Europe, it is particularly worth checking that your new property actually got planning permission in the first place!!)
  • Have a structural survey done by an experienced local person (for example, we don't have to worry about termites in the UK, but you certainly do in the Dordogne and in Florida!)
  • Only put down a deposit after discussing with your solicitor, and be sure about under what circumstances you could lose it.  This is particularly important if you are buying 'off-plan' from a developer.
  • If you are taking a mortgage, decide on whether in local currency or sterling - if you expect to sell in a few years time, it's probably better to be in local currency, so it stays as a fixed proportion of the property value.

WEB
SITES		 Some Websites Advertising Property

Just because a company has an attractive web site and brochures, doesn't mean you should forget the advice above.  Anyway, here are some suggestions to get started:
    www.homesonsale.co.uk    Site that holds property being sold directly by owners
www.worldofproperty.co.uk    Properties from agents and developers
international.propertyfinder.com    More properties from agents and developers
www.my-french-house.com    Service to get you a property in France
www.primelocation.com    Properties are listed most-expensive first, so don't be alarmed!
 
You can get lots of advice from the web, but a lot of it is biased, especially that from agents, minimising the risks, and playing up how easy it is to get rental income.  If you want something unbiased, best to get a book, and here's one to get you started!
                         Buying Property Abroad
A Guide from the publishers of Which magazine
  This book takes an in-depth look at France, Spain, Portugal, Italy and Florida, as well as considering emerging markets in the Mediterranean, the Balkan States and Eastern Europe. The book outlines the sort of property you are likely to encounter, looks at local taxes, local law, and considers the true cost of holiday homes. It also looks at the financial and legal implications of long-term residency, with particular reference to retirement, taxation and health care.  

    for more information, or to buy it


A final thought:  some say that the international property boom has gone on too long, and that at some point values will drop.  If they are right, then the right strategy might be to hold on for a year to see what happens.  This is particularly true of the US market, and if anything, currency changes will be against the dollar, so another good reason to delay your purchase.
Some useful links to wotnext pages:
    For everyone: Where to live,  Keeping Fit,  Investing,  Hobbies,  Holidays,  Meeting People,  Getting Value,  Security
For early retirement: Where to live,  Keeping Fit,  Investing,  Hobbies,  Holidays,  Meeting People,  Getting Value,  Security
  		 

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