Buying Abroad
More and more people are choosing to leave these shores for good and pitch up abroad. It became popular with retired people in the 1980’s who would spend part of their year, usually 6 months at a time, in places like Spain. Pensions could be collected and home visits back to the UK made during the summer months. Nowadays, more people of working age are deciding to live and work abroad for good.
A whole industry has grown up around buying property abroad. Interest from television programmes has made the whole idea seem so much more achievable. Cheaper property prices, an affordable cost of living and non stop sunshine are the main reasons for leaving the UK.
Once you have decided that ‘living the dream’ is what you want a whole chain of events has to be set in motion, it’s stressful enough moving around in this country so moving abroad is bound to throw up all sorts of challenges. Finances have to be arranged even before you decide to look at properties abroad. Time wasting is not an option. You may need an overseas mortgage and will at any rate need to take some kind of financial advice you could click on http://www.mortgagesoverseas.com/ or http://www.barclaysbrokers.co.uk/. Unless you are paying cash for your property in which case you will need to transfer the money from your UK account to the overseas vendor of your home. This could be done by opening a bank account in the country you are moving to and if necessary you will need a Certificate of Importation. Remember that any unfavourable exchange rates can cost you dear - especially if there's a long delay between choosing the property and completing the purchase. If you are retiring you will need to prove that you are claiming a pension. You will need to research the tax systems of the country you will be residing in, your UK bank may be able to advise you on all these issues or point you in the direction of someone who can.
View as many properties as you can and preferably through an agent who is a member of the Federation of Overseas Property Developers, Agents and Consultants (FOPDAC). Once you have found a property to buy it would be a mistake to go ahead without seeking the advice of local independent Solicitors, Architects and Surveyors. For a full structural survey, allow 1% of the purchase price plus VAT. In some areas countries such as France you may also need a separate termite inspection by law.
View as many properties as you can, preferably through a local agent who is a member of FOPDAC, the Federation of Overseas Property Developers, Agents and Consultants. Always allow yourself a cooling off period before you put a deposit down and if you are arranging finance on the property that you negotiate an ‘opt out clause’ if the loan is not agreed.
Try to arrange your mortgage in the currency that pays your salary unless you are going to receive rental income from that property in the local currency and then this may be a possible alternative option, dependent on the lender’s criteria although in countries like South Africa this will not be possible.
Be aware of any costs charged by the local authorities for purchasing the property.
