Buying property overseas is something that many expats consider. Since the United Kingdom exited the European Union (EU), living and purchasing property in the continent has become a bit more complicated but continues to be an attractive option.
Countries such as Spain, Portugal, Greece and Cyprus offer a wide variety of properties to satisfy every buyer and budget. Our blog explains why you should consider buying property in a foreign country and what you have to take into consideration.
Should I invest in overseas property?
The answer is yes if you have done the math and you make an informed decision. Investing in brick and mortar is one of the most stable and, many times, profitable investments. Purchasing property is a great way to start building or diversifying your portfolio.
Property markets have skyrocketed in many countries in the last few years due to low-interest rates and monetary policies implemented by central banks. Rental yields have also increased so the return-on-investment rate of a property is likely to be high depending on the area and local economic conditions.
Buying a property overseas includes another diversification factor: location. Becoming an owner of a property overseas means that you no longer hold all your eggs in one basket. For example, British buyers are not restricted to buying an apartment or a house in the UK. Still, they can explore the potential of a different property market in another country.
Advantages of buying property overseas
Owning a home overseas comes with some benefits. Read below which these may be and take them into consideration before deciding on your next step.
Alternative residence in another country
You may live in the UK or work as an expat in Europe, Asia or Africa. Being a tourist or looking for career opportunities, you might have lived in another country and have grown fond of its beauty. Did you ever think that an overseas property may allow you to live there for the rest of your life? Or secure your holidays in a fantastic place for the next years?
Suppose you had bought a lovely apartment in Lisbon or a house in Costa Del Sol. Your property could be the alternative residence that you always dreamt of. Wouldn’t it be great to spend your retirement there? A second home abroad could help you live the lifestyle you always wanted.
Get a second passport
There are many citizenship and residency by investment schemes offered by a lot of countries in Europe and the Caribbean Sea. Some of them are Portugal, Spain and Greece in the EU as well as St. Kitts & Nevis and Antigua & Barbuda in America. Most of these programmes offer a second passport in return for investing a specific amount of money in the local economies.
One of the best and easiest ways to get a second passport is by buying a property. The initial costs may be a bit high, but you can become a homeowner in one of those countries that are also excellent tourist destinations. Plus, you get a second passport that allows you to work in the country and travel visa-free around the world, depending on the programme.
Investing in such a programme means hitting two birds with just one stone. If you don’t want to keep the property after some years, you will be free to sell it, invest in another asset or country and keep the passport.
Cheaper housing options abroad
UK house prices have risen significantly in 2022, maintaining the momentum that even the coronavirus pandemic couldn’t stop. The same price course upwards has been a reality in many countries abroad, especially in Europe. However, it should be noted that the UK property market is, in some cases, cheaper than the overseas property markets such as the UAE and Hong Kong. The cost of living can be lower in some cases than in the UK.
As a result, an overseas property purchase may be a fine solution if you would like to become a property owner. International property is always a good option if you have the funds and the will to add such an asset to your portfolio. You can either use it as a rental property or you can use it as a primary residence. We always suggest that our clients get professional advice before scanning the overseas market, as there might be tax implications that you would like to know before pulling the trigger.
What should you consider before buying property abroad?
Making such an investment abroad isn’t the easiest task. You will have to consider some things before investing to minimise costs and reduce uncertainty.
What are the country’s home ownership laws?
Of course, it is not easy to know the ownership laws of every country. Depending on the country, they can be very complicated. Before you start searching for your dream home, we suggest getting in touch with a lawyer experienced in international property transactions. Holborn’s advisers can recommend top professionals so don’t hesitate to contact us.
Exchange rates and purchases
Buying property in the UK doesn’t involve checking exchange rates and currency transfer costs. However, when you plan to buy a home in countries such as Germany, Spain, United Arab Emirates etc., you should consider exchange rates and how much it would cost to transfer a vast amount of money. We suggest reading our blog on how currency transfers services can help you understand the service’s characteristics fully.
How can I get an international mortgage?
This is the part where Holborn’s expertise can help you. Getting an international mortgage can be more complicated than the average mortgage so you need the help of a financial adviser that can review several mortgage solutions and assist you in picking the right one.
Holborn Assets and buying property abroad
Purchasing property is sometimes a stressful process. Buying it overseas includes international transactions on many levels that might deter potential overseas buyers. Before making such a move, you will have to conduct thorough research to understand market conditions and review the pros and cons of having an additional property in your portfolio.
For more than 20 years, we help expats achieve their financial goals. Holborn’s multiyear presence and experience in property markets allow us to be able to give qualified advice to individuals who’d like to become foreign property owners. Our mortgage specialists are always on hand to offer top quality service, tailor-made to your needs and budget. Specialist advice can save you large sums of money wherever you may be. Don’t hesitate to contact us today by filling in the contact form.