If you’re just beginning to think about buying a property abroad, it’s worthwhile to start by doing some research on the internet. There are many websites to choose from, so take the time to read about the searching and buying process before you begin looking at properties.

It’s a fact that the more specific you are with your goals, the easier it will be to achieve them. So it’s a good idea to start by determining what you want to achieve by purchasing an overseas property.

What are the options?

To own a holiday dream property that provides warmth, relaxation and a true home away from home
To sell your property in the UK and find a place in the sun to retire to, or to start a new life in your new country of choice
To own a holiday home which will also be a solid investment and give you good capital appreciation over the long term
To own a holiday home AND get extra monthly cash flow from letting it to renters when you’re not there
To own property for pure investment potential – for capital and/or monthly cash flow

How precise should my budget be?

There’s nothing worse than spending time and effort in researching areas and opportunities that are not achievable. Many purchasers fail to calculate all the costs and prior to getting their property, they run out of funds and have to make some very difficult decisions. So the more detailed and comprehensive you budget, the better your chances of achieving your goals.

What happens to my reservation fee?

A reservation fee is taken to secure an investment and maybe up to around €5 000. The reservation fee is fully refundable within 14 days if you decide not to invest.

What are the buying costs?

To buy a property anywhere in the world there are associated costs including solicitor’s fees, (or notary’s fees if applicable) taxes and other costs. These fees can be 3-15%, depending on the country. It’s good to make a note of these costs, as they can be a determining factor as to whether the deal will work or not.

How can I finance my property abroad?

There are several ways you can buy your new property. These include re-mortgaging your UK property; applying for a mortgage in the country where you’re buying; using savings or cash released from your pension; and clubbing together with family or friends.

How secure is my money?

It’s often the case in international property that you’re expected to part with cash before you take ownership. This being so, it’s important to have some kind of safeguard in place to protect you and your money. Paying deposit, for instance, with no form of security is not something we would recommend.

Protection options can include:

• A bank guarantee
• An escrow agent
• Payments staged through a lawyer according to a series of conditions being met
• Taking a ‘charge’ on the developer’s land

We will be happy to advise on any of the above.

What about the legal side?

The law governing the sale of property varies from country to country. It’s vital that you hire a UK qualified, registered solicitor who has experience in the country where you’re buying and who can guide you through the process.

How do I transfer money from the UK to other countries?

Using specialist currency exchange companies is generally far cheaper than banks. You can also fix the exchange rate for a specified point in the future – so your money’s worth the same whenever it’s transferred, for up to 18 months.

How do I rent out my property?

Generally you’ll find a local agency that will handle all the rental administration, including advertising and bookings. In addition, they will usually clean and maintain your property. Compare several agencies for service and charges before you commit. Alternatively, you can rent out the property by yourself, which is harder work, but means that all the income is yours.

What is a GRS?

Guaranteed Rental Schemes (GRS) mean the purchaser buys the property and signs an agreement with the developer/management company to let the property on his/her behalf for a fixed period of time. The income is set – often between 4 and 10 per cent net – for the period of the contract. The rates offered are often less than the market might return, but give the buyer confidence in the short term.

What are the tax implications?

If you rent out your property abroad, income will have to be declared to the British taxman. Check out the tax laws of the country you’re buying in. There may be implications if you rent or sell the house. Many countries have reciprocal tax agreements with the UK so that you don’t end up paying tax twice. You also need to make a will, as local inheritance tax laws may also come into play. An APP professional partner specializing in tax planning, maybe able to assist with this side of your purchase.

Do I need insurance?

As in the UK, you will be required to take out buildings insurance if you have a mortgage against the property – and would be well advised to do so in any case. Contents insurance is highly advisable, and you’ll need personal indemnity insurance, to cover your potential liabilities to anyone who is, for instance, injured while on your premises.

What about furnishing my property?

In most countries we can provide you with details of companies that will provide a whole package tailor-made to suit your needs.

What happens to my investment if I die?

Each country is different so it is always best to seek advice from your lawyer but in most cases if you have a will in that country you can state your wishes in the event of your death.

Will I lose money on my investment?

Any type of investment has an element of risk. The key to good property investment is minimising the risks by doing plenty of research and seeking professional advice. Property investments should be seen as a medium to long-term investment. Market fluctuations, trends and predictions suggest that the property market will continue to rise for the foreseeable future.

How long does the process take?

It depends on the country you are buying in – very generally in Europe, times can vary from 12 to 20 weeks. It doesn’t necessarily pay to rush the transaction through, it is much better to make sure all checks are done thoroughly and the legal implications have been carefully looked into.

What is an exit strategy?

An exit strategy is an essential part of an investment plan. You need to decide before you buy how and when you sell. There are many issues surrounding “when is the best time to sell”. The ideal exit strategy will aim to sell the property as the market peaks, so plenty of research into the local market history is required. Unless you’re very confident, it’s worth seeking expert advice on exit strategies. APP will be happy to discuss this with you.