How wonderful would it be to own some beautiful land and a nice home in the tropics of Costa Rica? Or your own vineyard in Italy? Many Americans are looking to purchase real estate internationally with the hopes of gaining more bang for their buck! During the financial crisis, property prices in Europe fell drastically and have not made a complete recovery. This makes International property prime for potential American International Home Buyers.
Purchasing real estate overseas can be quite different than purchasing real estate nationally. Here a few tips to keep in mind during your search.
Hire a Real Estate Professional
Find a good real estate agent and a good attorney that not only understands the title laws, but also has a firm grasp of foreign properties, policiesand taxes. Each country has it's own set of real estate laws and restrictions, it is best not to go it alone.
Put your money where your mouth is
According to CNN Money, assume that you can only pay cash for your new property. This allows you to have a better grasp on what you can afford overseas. Financing a property abroad is less common that financing in the United States. Buyers tend to pay cash for properties in countries such as Mexico, Central America and Greece. If you are unable to afford to pay cash for a property overseas you may still be asked for a 40% down payment. So, be sure to have plenty of cash on hand during this endeavor.
Google can be your friend during this time as research is the most important thing you can do before purchasing property abroad. Interest rates, down payments and closing costs can vary from country to country, so make sure you look hard into these costs while you are searching for your international property. Each country has their own procedures and rules and some countries won't allow foreign ownership at all. There are some countries that are not real safe to live in either, you can check country information out at the U.S. State Department.
This can be an exciting time, make it a fun project!