Top Tips for Buying Luxury Property Abroad
It is a great time to buy luxury property, prices are low, and there are plenty of choices. Whether you are looking to migrate, searching for a second home, or looking for income from holiday rentals, you are sure to find a great deal.
Generally, luxury property investors fall into two categories – properties bought to live in or a new revenue stream that becomes an asset to leverage later. Whatever the purpose behind your luxury property purchase, you must get the right knowledge before parting with any cash, as the smallest of issues often become big, costly mistakes. Here are our top tips for buying luxury property abroad.
1. Establish your priorities
Whatever your idea of the perfect property might be, you must decide on the details before beginning your search for a luxury overseas property. Everyone has a different view of the ideal lifestyle. Some look for a quiet lifestyle on a large, secluded country estate, while others might prefer a rooftop apartment in bustling French Rivieras. Whatever your likes, dislikes and lifestyle preferences, it is essential you list them at the beginning – complete our Perfect Property Checklist.
2. Managing your Property
If you plan to use your new luxury property as a holiday retreat, you will need to consider the maintenance of the property when you are not there. If you plan to rent the property, you will have to use a management company to handle the guests.
If the property is part of a managed community, a central management team may assist with your rental guests and maintain the grounds and property. Otherwise, a property maintenance company will be required to do that for you. We can connect you with recommended property management specialists, giving you peace of mind that your property is maintained and safe.
3. Research the Real Estate Market
You must investigate the country’s property market in which you plan to buy. Although global prices are in your favour now, you need to consider your destination’s market conditions in the context of your home market and global trends.
Remember, real estate markets can be volatile, and what looks good now may not work for you in a few years. If your reason for purchase is purely an investment, you should get professional guidance on the destination you are considering. They’ll provide invaluable insight on rental income, capital growth rates, prime locations, property types, planned developments and more.
Specific locations around the world have established themselves as luxury hotspots. Their image has been carefully crafted to attract investors – the French Riviera, Marbella and Tuscany.
4. Visit the property
The Covid pandemic dramatically changed the real estate sector. Governments and local authorities have made it easier for foreigners to purchase property without visiting the country. Real Estate Agents embraced video technologies – buyers can now tour a property from the comfort of their sofa.
However, we strongly recommend you visit the property before buying it and at different times of the day and week. Photos, video tours and building diagrams can only provide so much information. Much could be missed, such as obstructed views, road noise, and other deal breaks that you might not discover unless you visit the property.
5. Permissions & Licenses
Your property agent and, most importantly, your lawyer will ensure there are no legal issues, such as outstanding debt on the property, irregularities with the building itself or any disputes regarding the property.
6. Paperwork
You should never sign any agreement until you clearly understand it; ideally, it should be checked over by an independent legal advisor. All documentation should be translated into your language, with an independent advisor ensuring the translated document accurately represents the original document.
7. Get Professional Help
You will need to navigate many potential pitfalls when buying a property – buying a property in another country and language further complicated matters. Working with experienced experts will help with every stage of the buying process. The most used and considered professionals are good property agents, independent property lawyers and currency specialists.
8. Paying for your Property
It is now time for you to pay for the property. It might be a deposit payment, a balance on completion, stage payments on a new build, or a deposit and a series of mortgage payments. Whatever the schedule, you will need to make an international payment. Many make the mistake of using their regular bank or new bank in destination and get lousy exchange rates. A currency specialist such as Hawk FX – International Money Transfer Experts can provide great exchange rates and lock in favourable rates to cover multiple payments for up to 2 years.
Help finding your Perfect Luxury Property
Buying a property overseas usually is fun and exciting with the right help. Whatever your requirements, we can help. For example, if you are short on time, we can connect you with an experienced property finder who works in your interests and will do all the heavy lifting for you. Tell us about your overseas property plans.
