Buying a home is one of the lifetime investments you can ever make.
The process of buying a new home is associated with a lot of hassle especially when you are looking for one abroad and doing it for the first time. Buying home abroad is exciting, but the risk of legal pitfalls is high. Here are some tips to help you reduce the risk of bad property investments when buying a home abroad.
• Get professional assistance
At times, it is certainly a great deal buying a foreign home directly from the owner. However, if you are not familiar with the foreign real estate market, it is advisable to purchase through a reputable property developer or from a professional real estate agent.
It is good to deal with these professionals because they can provide you with useful guidance to help you avert pitfalls when purchasing an overseas property. Foreign real estate professionals usually have an obligation to see to it that you get access to every detail of the purchase. The majority will complete the deal on your behalf and ensure you get the satisfaction you want.
• Do a thorough investigation of the market
Real estate markets differ from one state to another. These markets go through lower and rising cycles and at times they are independent of each other. It is not good to always base the property value of your home country to that of other states. Investors are the ones who are interested in the market trends because they want to buy and then sell the house at a profit.
There are countries that limit or prevent real estate ownership by noncitizens. Therefore, you must make sure that the laws of that particular country allows you to purchase real estate and under what terms is it allowed before making payments. As such, you stand a good position to avoid disappointments or scams.
• Hire an attorney
Working with a lawyer is important although some real estate deals do not need you to hire a legal representative. When buying a home overseas, it is invaluable to hire an independent lawyer to represent your interests and watch out for potential legal violations.
• Have the documents translated
Before you sign any documents relating to the purchase, see to it that they are professionally translated. It is very crucial because you ought to understand everything that you are signing your name against. Ensure that you clearly understand words used. Read the contract and see to it that the terms and conditions you agree to be favourable. Ensure that the contract specifies the payment methods. Get to know if the funds are refundable and the deposit required.
• Choose your location
Decide on the particular location you want to reside within the country. To determine the best location, it is advisable that you carry out short visits or holidays to your potential country until you decide an on an area that’s right for you.
Before releasing your money, ensure a valuation of the home is carried out. It is crucial because any problems with the property will be pointed out. For instance, you get to know if the house has wiring defects. Valuation is essential as it highlights possible boundary disputes if any.
• Property ownership
Get to know if the developer or agents have full title to the home. Do thorough investigation on this so that you do not buy a property that has a debt. Ensure your solicitor can check out this.
• Arrange your finance
When making a down payment, payment in full, or mortgage payments find a reliable foreign exchange service to assist you in these transactions.
If you need mortgage finance, you will need to get an agreement in principle before agreeing to purchase the house, or before paying a deposit or signing the papers. Ensure that everything you pay is clearly outlined in the contract.