So in the spirit of avoiding the latter at all costs, here’s a look at the five cornerstones of ensuring a successful overseas property purchase:
Ownership of the Property An arguable no-brainer to kick things off with – does the seller of the property or its developer actually have full ownership of the place and the land it occupies? It sounds like a bit of an obvious pointer, but overlook this little matter and there’s every chance you could end up buying a property that’s knee-deep in debt. If there are outstanding payments on the place and you buy the place from the current owner, guess who also inherits the debt?
Location Consideration Location means so much more than just the name of the place and how pretty the property is. In some areas, the biggest lump of the value of property for sale Monaco is added by its proximity to things like entertainment hubs, airports, city centers and so on – you need to check all of these before making up your mind. After all, it may be just the ticket for you and your tastes, but your target market might not get-off on the same things you do.
Local Currency Before buying, open a bank account where the property is located. This will make it so much easier for you to deal with all the financial stuff that comes later – just be sure you get a decent account with an international bank ideally to make it all as smooth as possible.
Additional Costs The asking price of the place might seem reasonable, but this isn’t the total cost you’ll end up paying…not even close. Once you’ve added on local and national taxes, the fees your lawyer will charge, bills from the estate agent, exchange rate fluctuations and so many more besides, you might end paying about 15% more than you expected to in total.
Taxation Last but not least, research the local and national taxation laws of the place you’re looking to buy into. The problem so many face is the way in which they go hell for leather into a purchase and have all the best intentions in the world, though end up making a genuine mistake when it comes to tax. When this happens, the best you can hope for is a stern slap on the wrist and a pretty hefty fine added onto your bills at the worst possible time. At worst, you might end up having the property taken away from you and find yourself thrown into a potentially life-changing legal battle. So while it’s not the most lively and pleasurable part of the process, you need to be savvy on all tax issues home and abroad.