It is always important to look for a house when you are moving overseas temporarily or indefinitely. Whether you’re moving with your family or you are retired, a worker, or a business investor, buying a house in a new unknown country can be difficult. Each location has its own set of pros and cons. Areas such as Copenhagen and Berlin are popular with young professionals, Singapore is popular with families, many holiday homes in Cape Town, and Mallorca is ideal for retirees looking for sunshine.
Process of Buying a Home Abroad
If you think you already have a place you like – whether you want to move to another country, country or city by buying a house abroad, we recommend following these steps.
1) Set a Realistic Budget
With an independent online search, you can estimate the moving average cost of the type of property you want to buy: this will give you a general idea about the prices of the houses in your desired area. You need to examine how much you have to spend on your desired house within your financial means. This makes it easier to sort the houses by defining a budget.
2) Find an Agent
If you quickly search the internet to find houses and land in your favorite area, it will lead to the contact details of many real estate agents. Understandably, the temptation to take a phone call or send an email can be overwhelming.
However, the best way to buy a home abroad is to start by getting the services of an experienced real estate agent in the country or region. Prioritize working with agents who are active or newly engaged in the country.
Provide the agent with preferences including location and budget, so that they can understand your needs when looking for a suitable property.
3) Property Inspection
When a real estate agent comes up with a list of real estate for you, you can arrange a meeting with the seller. To get expert advice, you can appoint a real estate agent to search a house according to your requirements, inspect it and put up an offer to the seller on your behalf.
4) Present an offer
You can make an offer in two ways; whichever suits you better. The first way to make what is offered is also known as a book of purchase intentions or a purchase offer before the deal is done.
The other way is to try to inspect the place even before having a meeting with the seller. This method is more advantageous if you are short on time or don’t have plenty of money to spend. If you look at the place before, you can put up a more accurate offer. The offer will also be very attractive to the seller as there will be no home inspection conditions.
5) Sign the Contract
If you see no flaws in the house and your lawyer has viewed that agreement and its terms and is satisfied, then you can proceed to sign the contract. You can ask a professional immigration lawyer from Aberdeen to review your contract. If you are unable to understand the contract or it is not in your known language, you can request its translation. Before signing a sales contract, make sure you understand every single clause. Postponing a signed contract can be costly.
6) Pay the price of the House
It is usually the most difficult step of the whole process of buying a house overseas. If you are financing a 100% loan, you will not need to consider how the money will be sent to the seller. If you agree to pay for the property in full or in installments, talk to the seller about his preferred mode of payment.
7) Property Buying rules in the United Kingdom and Wales
Anyone can buy a home in the United Kingdom without any restrictions under the laws defined. Non-residents and outsiders may qualify for a deduction. However, those under two years of residence and who do not have a permanent UK job can only access non-state loans where they pay 25% of the minimum payment.
There is a certain limit to buying a property for rent or you are obliged to pay a Stamp Duty Land Tax (SDLT) if the property is too expensive. Currently, the limit for residential property is £ 125,000, and non-residential space is £ 150,000. After selling the property at a higher price for profit, you are obliged to deduct Capital Gain Tax and it may be 18% if you are a primary taxpayer and 28% if you are a secondary taxpayer.
In addition to stamp duty, other previous home purchase costs in the UK include the mortgage (5-40%), property costs (estimate, planning, and booking fees), legal fees (over £ 1,000), land registration fees, and removal costs (range between £ 300-600). If the property you are buying is in the lease, you will have to pay the contractor’s costs ranging from £ 50-100 per year.
8) Consider citizenship by investment programs like Greece’s Golden Visa
You can also consider citizenship by investment programs like Greece’s Golden Visa, which can also offer opportunities in the real estate market. These programs provide a dual benefit of residency or citizenship alongside investment in the local real estate sector. Greece’s Golden Visa program, for instance, allows investors to obtain residency by purchasing real estate worth €250,000 or more. This option not only provides a foothold in the European Union but also offers various benefits such as visa-free travel within the Schengen Area.
Investing in real estate through such programs not only secures your residency but also potentially yields returns in a thriving market. However, it’s crucial to thoroughly research and understand the requirements and implications of such programs before making any commitments. Consulting with legal and financial professionals familiar with these programs and the real estate market can help navigate the complexities and ensure a smooth transition to your new home abroad.
