Buying property abroad can be a great way to have a second holiday home or a way to build your real estate portfolio. However, it is not something that the average person can do, it takes a lot of planning, time, and money to make it happen, but it will be worth it in the end.
Currently, in the UK, less than 100,000 people own property overseas. Although this number is small, it doesn’t mean that owning an overseas property is impossible. You just need to be willing to do your research and have the patience that your planning will pay off. If you are considering buying property abroad, then here is our list of 4 things you need to think about when going through the process.
Establish a budget
As with buying any sort of property, one of the first things you need to do is establish a budget. Without a budget, you will just be viewing properties without knowing if that is something you can reasonably afford. Setting yourself a budget will help you through the entire buying process, and if you are working with estate agents overseas, your budget will help them find you the perfect property.
Your budget will be established in a number of ways; firstly, you need to think about how much you can comfortably put down as a deposit, then, you need to consider how much mortgage will be left to pay and if that is something you can afford. Additionally, your budget needs to include any renovation plans you have for the property. Sometimes you may not realize that work needs doing before you buy the property, so be sure to have a bit of budget left over for any changes that need to be made.
How to find the right property
You may think that finding a property to buy overseas will be difficult, but this is not necessarily the case. Obviously, the first thing you need to know is what country and area of that country you want to buy a property in. If you already have a place in mind, then your best bet will be to do an internet search and find some local estate agents in that area.
For example, Malaysia is quite a popular place to buy a second property as the location is great and the cost of living is relatively low. If you think Malaysia could be the perfect place to buy, then check out these properties by Property Guru for some inspiration. Contacting local estate agents will be your best bet as they are familiar with the area, therefore, can give you helpful advice. That being said, it is their job to sell you a property to be sure to always view the property over a video call or in-person if possible.
Familiarise yourself with the culture
When buying a property overseas, you should familiarise yourself with the culture. Embracing the local culture will help the moving process be easier, and if you intend to live on the property yourself, it is polite. While culture shock is very real, if you do your research beforehand, you will know what to expect when you arrive. One thing that would be handy to learn beforehand is some language basics. Knowing a few words and phrases will be helpful during the moving process as it can make complicated situations a little bit easier.
Additionally, if you intend to live in the property after you have bought it, knowing some language basics could be a good way to make new friends. Another way you can familiarise yourself with the culture is to embrace the local cuisine. Food can play a huge role in most cultures, and it can be a great way to socialize with other people. Whatever country you decide to buy a property in, be sure to sample some of the local cuisines and visit the family-run restaurants to get a truly authentic experience.
Your intentions for the property
When attempting to buy a property abroad, you need to consider what your intentions for the property are. When people buy a property abroad, they are doing so because they either want to use it as a second home or as an investment opportunity. Both are viable options, but they can change how you search for properties.
If you are looking for a second home for yourself, then you will likely be a bit pickier when it comes to the features of the home as you want it to be a space you love. However, if you are buying the home as an investment opportunity and intend to rent it out, then you should look for properties with multiple bedrooms and bathrooms so big groups of people can stay in one place together.