Negosentro|Whether you’re looking for a vacation home, planning to rent out a property, or just want to buy it as an investment, there are many reasons why you might be looking to buy real estate outside of the USA. While it can mean you get a great property at a much lower price than those on American soil, there can be added complications when buying and selling in different countries, so here are some things to consider.
What you’ll do with the property
You may be looking to buy overseas in order to have your own vacation home, but unless you’re retired and have a lot of free time, it’ll sit empty most of the time. This raises several questions, including:
- Who will maintain the property? For example, tending to the garden and making repairs
- How secure is the property when you’re away? It’s essential to keep empty vacation properties safe no matter what area they’re in
- What’ll happen if you have a break-in or there’s damage from a hurricane, fire or extreme weather?
It’s crucial to get excellent insurance and to have someone local you trust to look after the property, whether you let it out commercially or just to friends and family.
The buying process overseas
It’s important to work with a reputable firm when you buy overseas, as there are many scams and potential issues that can arise when buying foreign property. Find an expert broker; for example, if you’re looking for real estate Egypt, you can find real estate agents who offer sales on many different types of properties in the country. You’ll need to think about your budget, location and many other factors before you make your decision, so don’t rush into a purchase simply because you love a particular house.
Taxes and finances
American taxpayers will have to pay taxes on income from foreign properties, and in certain countries, you may have to pay local taxes too. If you’re using a rental income to make a living, then you need to take this into account as your profits may not be as high as you think. You should also be aware of currency fluctuations. If you’re making mortgage payments, then any changes in the currency could affect your outgoings.
Letting out your property
A vacation rental can be a good investment, but it’s important to research the market first, working out how much you can reasonably charge and what your occupancy rates might be. You’ll no doubt have high and low seasons and years where it might be difficult to get people to book. An alternative is to let the place out to the local market, which means you can get longer term rentals, although you might make less money. Think about which option would suit you best. Overseas property is an exciting investment, as it has endless potential and you can make a lot of money from it. However, it’s important to be cautious and to get independent advice before you commit to anything.