10 Top Considerations For Those Buying Property Abroad

Are you one of a growing number of people considering buying a second home in the sun, an idyllic home from home abroad or a lucrative investment property overseas? If so youre not alone!

Statistics show that globally were all on the move with a recent survey by YouGov revealing that 55% of adult Britons were seriously considering settling in another country and the British Centre for Future Studies predicting that by 2020 one tenth of the current British population will be living or working abroad!

Add to this the fact that there was a 250% increase between 2000 and 2004 in the number of Britons buying property abroad solely for investment purposes, that over one and a quarter million Brits own second homes in Spain and France already and that the Office for National Statistics in the UK recently revealed that 200,000 Britons go overseas yearly with the intention of remaining for at least twelve months, and you can see that the passion for buying that dream home abroad is universal.

But whats fuelling this ever growing interest in the overseas property market?

Well, despite reports to the contrary the UK housing market is seemingly ever on the up and those Britons whore acquiring massive levels of equity through their residential property are considering selling up, buying abroad and establishing a pension fund simply on the back of what they have left over from their house sale. Others in Britain cant actually afford to get on the first rung of the property ladder and some are looking abroad to find more affordable housing.

Then of course theres the state and confusion surrounding the pensions market which is getting ever worse meaning that a growing number of Britons are considering the option of buying a second property abroad to let out for an income towards retirement. Others just share a commonly held dream of owning a holiday home in the sun or escaping the rat race to get a new life overseas.

Whatever reasons you may have for considering buying property abroad one thing is for certain; before you go ahead and buy you should understand some of the far reaching legal, financial and taxation implications of buying abroad. This article examines ten top points worthy of your consideration.

1) The British national obsession with property prices, equity and re-mortgaging is as foreign a concept in many other countries as mushy peas or vinegar on your chips so dont just assume that your second home will rise in value and dont assume that itll be easy to sell. Do your homework to see whether the property market youre interested in can support and sustain your particular hopes and ambitions for it.

In countries such as Northern Cyprus and Bulgaria the real estate market has been suppressed for so long that property prices remain highly competitive and many can see the room for substantial growth in the market. In other countries such as Spain, France and Portugal where the property market has been soaring for years can you expect the same levels of growth to continue? Know that every countrys property market is different.

If you decide to compare overseas markets to the UK housing market some may not appear as buoyant, however consider examining the longer term trends. Speak to established estate agencies in your country of choice to find out whether the market is stable or stale. If its stable then youre more likely to enjoy a steady, realistic increase in your propertys value rather than the extreme peaks and troughs that the UK market tends towards. If on the other hand the market is stale you need to consider the economy of the country and whether its due a positive correction any time soon.