Whether you’re looking for a new life in the sun, preparing for your golden years, investing in a promising market, or taking advantage of house prices, it helps to know there’s much to consider when buying property abroad. NewbridgeFX’s guide to buying property overseas provides a good introduction to what could be one of the most exciting decisions of your life.
Why buy a property abroad?
Relocation for work or personal reasons is one of the main reasons for buying property in another country. Some of the other common reasons include:
- Holiday property
- Property to rent out for attractive returns.
- Long-term investment.
The most popular locations for British people buying property overseas include Spain, France, Portugal, Cyprus, and Greece. Australia, Canada, South Africa, New Zealand, and the United States are other popular destinations. You can send money to all these destinations with NewbridgeFX, ensuring that when you buy property abroad, the transfer of funds is not a stumbling block.
How to find an overseas property
Knowing how to find what you are looking for is a key element of learning how to buy property abroad. There are several ways to start looking for a property:
Local Estate Agents: You can find a local estate agent through the Association of International Property Professionals or when you visit the country while on holiday or a scouting visit.
Online Property Portals: Check the websites of high-end UK and international estate agents such as Christie’s and Sotheby’s, as well as property sites such as OnTheMarket, Zoopla, and Rightmove.
Exhibitions: Search the web and community noticeboards for exhibitions and seminars on buying property overseas in your area.
How much does buying a property abroad cost?
Cost often is one of the most important factors to consider when buying a property abroad. The most common costs to consider include:
Property Prices: Consider property prices in various countries.
Mortgages: Analyse and compare various products and services offered by different companies to find the one which is most suitable for your needs and capabilities when buying property overseas. Consider how local currency-GBP exchange rate fluctuations could affect your repayments. With a NewbridgeFX account, you can make fast, secure international payments, protect your money with risk management solutions, and keep an eye on exchange rates.
Common Additional Costs: Financial advisor fees, chartered accountant or quantity surveyor fees, international bank transfer fees, bankers’ draft/bank-guaranteed cheque fee, fees to arrange power of attorney, shipping and insurance costs, legal fees to make a will, connection fees for council/municipal services, and translation fees. If you already own a property and are looking at buying property abroad, you will have to pay extra Stamp Duty.
Common Ongoing Costs: Mains drainage and refuse collection fees, annual property tax, income tax or income tax for non-residents, community fees/levies if your property is part of a larger estate or development.
Capital Gains Tax: You will need to pay CGT if you ‘dispose of’ a property overseas and make a gain on the sale.
Financing an overseas property purchase
Knowing your options for financing a purchase is another key aspect of knowing how to buy property abroad from the UK. There are a number of ways to finance an overseas property purchase. One of them is by buying the property outright using savings or a pension lump sum. Another option is to borrow part of the cost with a mortgage.
If you are not a cash buyer, you probably will need to look at taking out a mortgage. As mentioned, compare different providers’ products and services to find the best option for your needs.
Transferring funds overseas
Regardless of how you decide to fund your purchase when you buy property abroad, you probably will need to transfer large amounts of money overseas. One way to do this is to use your high street bank, which can be costly and take longer than expected.
Another way to do this is to use an international payments expert such as NewbridgeFX. We offer competitive rates, low fees, an easy-to-use market-leading online platform you can use to manage your account and your money, trustworthy knowledge and guidance, and superior customer service. We also offer risk management solutions such as forward contracts that allow you to lock in an exchange rate for up to two years.
Easy and secure international payments
Whether you want a change of scenery, a holiday home, a source of rental income, or a long-term investment, buying property abroad can be one of the wisest and most exciting things you do. There’s much to consider and a great deal of homework to be done, but NewbridgeFX can guide you along the way. Register for a personal account with us.