Things You Must Know Before Buying Overseas Property

Dreaming of a relaxed vacation by the seas of Hawaii? Or escaping to the Alps? An overseas vacation, that too in Cyprus, gets quite a makeover when you have your own house, cozy and comfortable, to put up. No hassles regarding hotel reservations. No waiting for your turn at the buffet breakfast. And no surly room service men either. It is all about you and the seas, the waves lashing on the shores and the soft wind caressing your hair.

Types of Overseas Property

Overseas property can be of two types: off-plan and resale property. In the first case, you buy the property even before it has been built. A resale property is bought after it has been built.

Going for an off-plan property has its definite advantages and there’s no dearth of buyers opting for this kind of property. Now there’s a catch to off-plan property and you need to be very careful about it. There are chances that your off-plan property might just as well end up a notch smaller than the plan you had fallen for.

There’s also the time factor that you need to keep in mind. Off-plan properties are notoriously slow off the mark and have quite a reputation of failing to meet deadlines. Brace yourself for this situation.

Keep a tab on the construction phase of your off-plan property. Remember that you will be in for trouble if the building doesn’t adhere to the plans.

The Do’s Of Buying Property Overseas

Where you are buying your property doesn’t matter much. Whether it’s France or Finland, Cyprus or Canada, there are certain things that you need to consider when you are investing in overseas property.

First and foremost, think twice before zeroing in on a particular country. There are larger issues to be considered than just the sylvan surroundings or the proximity to the seas. And in this regard the thing to consider is the stability of the economy in the country you are buying your property in. Take for instance, Cyprus. Cyprus may have just attained EU membership, but it has a robust currency. So you can very well buy your property here.

You should also enquire into the property market of the country. Just to ensure that your hard-earned money doesn’t go down the drains. There are countries like Cyprus where the property market is very much stable and you can make an investment here almost blindfolded. Besides, Cyprus just happens to have the fastest growing property market in Europe, with moderately low inflation figures and comparatively low commercial and income taxes. On the other hand, there are countries where you need to tread carefully, weigh the pros and cons of every deal and then commit.

You should be absolutely clear about the purpose of your purchase. This will actually determine the particular locale for your property. For instance, if you are contemplating buying a property that will be converted into a hotel, then go for that lovely Spanish villa by the highway. Most travelers appreciate a place that is easily accessible. If it’s a vacation home for yourself that you are looking into, then the almost tumbling down Tuscan manor in the middle of nowhere will suit you.

In fact, in this respect, you can go for Cyprus almost blindfolded. For Cyprus is one of the prime tourist destinations in Europe with a heavy footfall annually.

When you are choosing a locale, see to it that it is not a place, which is not shunned by the local people. Locals usually steer clear of a place when they smell a rat. You might be mesmerized by the jungle setting, but think awhile.

After you have decided on the property, concentrate on the all-important money matters. And in this respect, remember that you will need to dish out more than the face value of the property. There will be the lawyer’s fees to consider, the sundry taxes and of course, the VAT that will add up to the cost of the property. Unless and until you are buying property in a rare tax-less land like Dubai, taxes alone will have your property value shooting up.

However, the good thing about buying property in Cyprus is that the local authority taxes here are quite low, which means that your property price won’t spiral out of control.

When you are in foreign shores, it is always worthwhile to solicit professional help when you are dealing in property matters. Although the basic property laws are more or less same all over the world, you will need a consultant or a lawyer to guide you through the peculiar intricacies of the legal matters.

Language barrier poses quite a problem when you are dealing with property investments in foreign lands. You may find a document penned in a foreign language thrust in front of you to be signed on. Be very careful before signing on the dotted line; take the help of someone to decipher the text, ensure that you understand the text and the small print too, and then proceed. You may never know what burden the property comes saddled with.

There are certain things about investing in overseas properties that tend to get overlooked in the flurry of activity that usually accompany such deals. For instance, people actually tend to underestimate the importance of arranging for mortgage cash beforehand, that is to say, before committing to buy the property or before signing on any contract.

Speaking of mortgage cash, try to arrange for it in currency format, unless you are dead sure that you are going to receive rent in the local money from the property you have brought.

There is another oft-neglected area in the case of buying overseas property. Buyers often forget to check whether there is any debt attached with the property, and soon find themselves in quite a soup when things take a turn ugly with astronomical debts. This is because, there are many instances when builders take loans for construction purposes and this sum is assigned to each individual plot as an extra security measure for the developer’s bank.

Remember to obtain the Certificate of Importation from your bank in the foreign country so that you can easily transfer cash from your homeland to this country.

Countries are very strict about taxes, and more so, in cases where foreign nationals are concerned. So if you have bought an overseas property, decide on a local bank and issue standing orders to it to pay off your bills and taxes at regular intervals. There are countries like France and Spain, where you are severely penalized and even your property is confiscated if you fail to pay your taxes on time.

Take the right steps to ensure that your purchase deal goes off as smoothly as possible. Bask in the profits that your overseas property generates or revel in the glories of your overseas vacation villa. And while you do so, rejoice in the fact that buying it proved as easy as anything.

Some sources to get more information:

Property in Larnaca Find a large range of properties for sale in South Cyprus at Sunshine Estates