For most people, buying a house is a rite of passage: a dream they work toward for years. But who says you have to stick to real estate in your own country? Some people are lucky enough to be able to buy a second property overseas as a vacation home, while others have dreams of moving internationally on a permanent basis, either now or after they retire. If you’ve ever dreamed about owning an Italian villa overlooking a lake or a beach house in the Caribbean, then you’ve probably been thinking about how you could make it happen. While it can be challenging to purchase a home in a foreign country, it’s also worth the effort. Here are some tips for buying property abroad so that you can make your dream a reality.
Benefits of Buying Property Abroad and Things To Consider
Although buying property in a foreign country might seem intimidating, there are some major benefits to stepping outside the US real estate market. First, there’s the cost of living aspect. While some countries are more expensive than the United States, an American salary or retirement savings can go a lot further overseas. In many countries, the pace of life is slower and more relaxing, perfect for a regular vacation getaway or retirement.
With that said, it’s important to think about all the different factors involved. Is the government stable? What happens if you ever want to sell your home? Will it be easy to find a buyer? It might now seem like you’d ever want to sell, but things can change!
Know Foreign Laws and Tax Policies
If there’s one thing to keep in mind when buying property in a foreign country, it’s to do your research and understand foreign laws and tax policies. Many governments have special rules for foreigners buying property, and it’s crucial to follow those rules carefully. You’ll need to understand the tax implications of buying international property both in the US and in the country where you’re buying. Ask a professional for help whenever you’re in doubt—it’s not worth the risk of penalties to simply guess.
Before You Buy Property Abroad Consider Location and Lifestyle
Don’t make a snap judgement about buying a home internationally based on a quick trip or a first impression. Think about the location and lifestyle. If you buy a home, you may be further out from the city or town and have trouble accessing shops, restaurants, and service. In the United States, 2.3 million Americans live one mile or more from a supermarket and do not own a car. While some places may have good public transit, it may not be so easy to carry on a vacation lifestyle in another country. Factor in the economy as well, and be sure you’re investing in an area you really love that can meet your lifestyle needs.
Best Places Americans can Purchase Homes
You can buy a place almost anywhere in the world you want, with a few exceptions. Some places, however, are better-suited to Americans who are interested in buying property. Places like Canada, Mexico, and some parts of Europe may be a good option since they are easily accessible and often very safe. In some of these places, many people speak English, which can make the transition easier.
Consider All Expenses Before Buying a Home
The price tag of the home isn’t the last cost you’ll have to consider when buying a home—it’s just the beginning. Be sure to factor in additional costs like flights and travel costs, insurance, taxes, repairs, and your ability to sell the home in the future. In some cases, it might make sense to rent out the home when you’re not there if you only plan to use it for part of the year. Whatever your plans may be, it’s key to factor in all the costs before you buy.
Do Your Research
In the end, your success in buying a property in a foreign country will come down to research and planning. Find a trustworthy realtor and talk to people who already own in the area. If you don’t rush into anything, you’ll ultimately be much happier with your dream purchase!
