Overseas Property

Buying property across town can be hard enough. With constantly changing real estate laws, mortgage requirements, and unforeseen (but inevitable) red tape, purchasing a plot of land can be tricky. However, if you’re one of the many people now looking to sink down some real estate roots overseas, the process can become infinitely more complex. Language barriers, differing ordinances and laws, and the actual physical barriers facing those purchasing land in a different country, can create timely and costly barriers. Although there are inherent difficulties in purchasing overseas property, they are not inevitable.

Overseas Property for Sale
You can’t call your hometown realtor to help you locate overseas property. However, there are some resources available specifically for those on the international real estate market. The International Consortium of Real Estate Associations (www.icrea.org) is a good place to start looking for a broker overseas. Or, you can simply call one of the nationally franchised real estate companies to see if they have any brokers overseas. Some are affiliated overseas and can help. Still can’t find someone? Often, local attorneys can (and do) serve as realtors overseas. Do, however, ask around to find the most dependable representative for you. No matter where you locate your broker, however, expect to pay 4-6 percent in commission.

Overseas Investment
Want to buy an overseas investment property, or maybe “flip” a property for profit? Be aware that many countries (such as Vietnam) have limited property rights, while some countries that do allow ownership by non-nationals require that they keep any profits from real estate sales in a local bank account. Understanding your rights will protect your sweet overseas investment from turning sour.

Overseas Financing
These days, real estate buyers have a wide array of mortgages from which to finance their property. This is not so for those looking to purchase land overseas. Local lenders typically don’t offer loans for overseas purchases, and many overseas markets typically demand cash up front. Put simply; plan on having cash ready for your purchase. Even the more lenient English-speaking countries will often demand at least 40% of the purchase price in cash.

Title Insurance and Overseas Property Insurance
Once you buy a piece of property, it’s yours, right? Not necessarily, especially in more unstable or undeveloped countries. With property lines and ancestral claims constantly changing, buying title insurance is a must. Even those buying luxury property overseas are not immune from property disputes, and must stipulate title insurance as part of the sales transaction.

But what about property insurance? While certain locals may not require it, protecting your investment only makes sense. Start by contacting insurance companies that you are already familiar with. Often, these companies will also offer overseas property insurance. Still can’t find what you’re looking for? Ask your broker. Often, brokers have the best resources for these sorts of things.

Whether you’re shopping for a little cottage on some foreign shore, or looking for luxury property overseas, shopping from half a world away can be frustrating. However, understanding the nuances purchasing property overseas will alleviate some of the long distance strain and potential financial losses.