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What to Know Before Buying Foreign Property

By: Thomas Berten

Depending on the motives for purchasing real estate, the factors you need to consider will differ. For example if you are buying a property with the main aim of financial gain you may not give much attention to certain factors such as the social aspects or climate. Capital growth and yield are much more likely to be the most important factors for investment.

On the other hand a retiring or elderly couple will be looking for different things when buying property than an investor. For instance, elderly retiring couples will more than likely consider the demographic of the people that live in the area, the lifestyle, and the climate.

Though there are many factors that can be considered when buying a foreign property, I will highlight just a handful of them here:

Climate - If you have spent the winter in a cold city such as London you will know how important this can be. For this reason many people choose to live in countries of warmer climates such as Italy, Greece, and Spain.

Language - There are several destinations around the world that are showing a huge potential for property investment, but the language that is spoken in the area is a point that many people do not consider. Unless you have someone who will be acting on your behalf and can speak the language if you are looking to invest, it may be very difficult to converse with the locals.

Investment potential. You should determine both the long and short term potential of real estate in a certain location. This is to safeguard you against any downward turn in the real estate market.

Socio-political issues - The crime rate, attitude towards foreigners, and economic prosperity need to be considered for both investment and permanent living purposes. Is the location prosperous or is it on a downward trend?

Other factors such as healthcare, taxation, schools (if you have children), general cost of living, and environmental pollution should also be given due thought before deciding on any particular location.

Also, if you are planning on making a new life in a foreign country and will need to work, research the area to discover how marketable your job skills are in the area.

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