Buying property abroad: avoid the stresses
Buying a property abroad is a financial investment and personal commitment that may turn to be a very stressful and frustrating process. This article should help you in your house hunting.
Buying a property abroad is a financial investment and personal commitment that may turn to be a very stressful and frustrating process. We have all heard the sorry tales of people who have been house hunting and repeatedly outbid on properties they liked, or those who are unable to raise the finance after their bid has been accepted. However, with careful planning and good preparation you can avoid many of the problems associated with buying a property away from home.
The first step is to review your finances and get pre-approval from a mortgage lender. This is written confirmation that a lender has approved your application. You will then know what you can afford and will avoid wasting time looking at homes that are outside your price bracket. A common and tempting mistake is to start viewing properties first. But this can be wasteful and frustrating. After getting pre-approval you can concentrate your energy on properties you can afford, and you will be in a better negotiating position with the seller when you find a suitable home.
Then you should analyse your housing needs before you start the search. In the current Portugal wide and regional Algarve housing market, there is a temptation to rush the process for fear of losing out. Decide what you want and what you need in a property now, and what you are likely to need in the future. If you buy a property that is too small, or in the wrong location, you may end up moving sooner than you had planned.
View a large number of properties. It will help you become more aware of what you want and what you can get for your money. You will be in a better position to identify a suitable property, and you will feel more confident making your decision. When you find a property you really like, go back and view it at different times of the day. There may be a problem with light, noise or traffic congestion that you will only identify on your second or third viewing.
Buy for the medium to long term and not the short term. Buying a property with the expectation of having to sell in the near future can be risky. The transaction costs of selling and buying a house are expensive, and while price increases in recent years may have resulted in profits for those who sold quickly, this is unlikely to continue as prices moderate.
Before you commit to purchasing a property, think about an eventual resale. You may think a particular feature adds value to the house, but others may not see it the same way. A small road next to your property may be a positive thing for you, but years down the road a potential buyer may not be so thrilled.
By following those simple house hunting tips the process of buying property abroad should become easy.
Disclaimer
The information provided on the site is indicative only and does not form part of any contract. Any advice should be seeked after qualified legal professionals. Currency equivalents are indicative only and should be checked with your bank. |
