Things You Need to Know Before Purchasing Real Estate Abroad

Hands down, Netflix has positioned the world to see some of the most beautiful landscapes and residential real estate from coast to coast, whether it's a sky scraping penthouse in Manhattan or a lush infinity pool against a breathtaking North Cali skyline, they have done an astonishing job with broadening the scope of some of the best of the best in prime real estate. 

But, as an investor and also as a real estate agent, selling real estate stateside doesn't have to be the end of your portfolio. Real estate is located everywhere, here, there and abroad. 

Investing in real estate abroad can be an exciting opportunity to diversify your portfolio, generate rental income, or simply own a vacation home in a different country. 

Let's be honest - owning a home in a charming village in the Tuscany countryside in Italy is something that nearly anyone could dream of.  

It’s possible. However, just like any typical important purchase, it requires research - significant research considering that the investing party’s primary area of residence will be outside the country they’re intending to invest in. 

So, before making such a significant investment, there are several important factors to consider both before and after purchasing real estate abroad. 

Before Purchasing Real Estate Abroad:

Research The Market

How many times have you heard this before? Plenty. Whether looking to buy in your own backyard in your hometown of Albany, New York or an exotic pad near the vineyards in Sicily, research the market. It is crucial to thoroughly research the local market trends, property prices, rental yields, and legal regulations in the country you are considering. Understand the economic and political stability of the country, as well as any restrictions on foreign ownership of property.

Set A Budget

Regardless of what end of the financial spectrum you are considering, it has a number, which is the budgeted amount you would not like to exceed in this particular purchase.  Determine your budget for the real estate investment abroad, including property price, closing costs, taxes, maintenance fees, and any additional expenses. NOTE: Consider currency exchange rates and fluctuations that may impact your budget.

Connect With Local Professionals

Connections are key here. Considering there will be quite a bit of viewing and researching on the behalf of the purchasing party, it’s crucial to connect with a local trustworthy real estate professional that can be a maneuvering resource of knowledge, connections and simply an industry expert who can be the liaison between the primary location and location abroad. 

Still, it is important to seek out local real estate agents, lawyers, and property managers who are familiar with the local market and regulations of the country abroad. They can help navigate the buying process, negotiate deals, and ensure a smooth transaction.

Visit The Property

It would be wise to build in travel accommodations into your budget. Purchasing abroad will have a certain element of sight unseen, but considering it’s such a large purchase, maybe not in its entirety. If the purchase is facilitated by an investor's group or even if there is an agency of sorts deciding on behalf of the buyer, it’s understandable how it could be completed without visiting. However, otherwise this may not be the best option. 

If possible, visit the property in person to inspect it, assess its condition, and evaluate its location. Consider factors such as proximity to amenities, transportation, schools, and potential rental demand.

Understand Legalities

The laws of the land will surely vary by the land. Consider becoming familiar with the legal requirements for purchasing real estate abroad, including property ownership laws, tax implications, residency permits, and inheritance laws. Consult legal experts who are well versed in real estate in the specific country.
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National Real Estate Management Group Can Help You Reach Your Goals 

Closing on an international property is not the end of the process. It is the beginning. There are a few things to keep in mind post purchase, such as property management, especially if it’s an income producing property. Applicable taxes, insurance and overall upkeep and maintenance are other factors to consider.

Perhaps you are not seeking or yet prepared to begin investing abroad. That’s ok too. NREMG can help prepare and aid you in executing successfully on your goals for real estate investing right here in the States. And, when you are ready to expand, plug into our network of far-reaching real estate professionals.