Long Way to the Top

The most strikingly obvious difference with buying property abroad is, of course, different currency and with that, currency fluctuations. It is important to always shop around for currency when buying property abroad, a few phone calls can save thousands of pounds. There are now specialist currency exchange companies that offer competitive rates and also good brokers will put forward the option of fixing exchange rates, this way there will be no nasty surprises as the process goes on. 

As with any investment, purchasing property is a carefully thought out decision with budgets which leave very little room for manoeuvre. Obtaining a mortgage for property abroad can present many varied options but the key question to ask yourself is: do you want to get the money in a foreign currency? If you are earning money in sterling it may be best to acquire a mortgage from a UK based lender, however if you are earning the local currency it may be best to get a local mortgage. Overseas mortgage brokers are not regulated by the FSA, if you are going to go down this route make sure that you go with a well established firm.

oreign mortgages tend to be less generous than UK ones, they tend towards a deposit of over 10% and the repayment period is over 15-20 years, rather than the UK standard of 25. It should also be noted that typically in European countries only a third of your disposable income can be taken up by debt. It is important to have a good lawyer who is fluent in both English and the native tongue, when buying property abroad you are faced with an endless stream of rules and regulations which are alien to the UK’s property market.

Resale of property should also be a consideration, when your move is permanent resale value cannot be underestimated, this is your chance to get your foot on the property ladder and just like the UK, lack of research can be costly. The ability to resell is particularly important with new developments, here tempting discounts can be offered but is their a viable market for resale? In certain parts of the Spanish Costas and Dubai it is difficult to sell second hand apartments.

If you follow the same rules when looking for property abroad as you would in the UK, you must view the property at least twice, at different times of the day. Quiz your agent on the local market and make sure that they have sold in the area before, this way they will have knowledge of the local market and established contacts in the area. If you still have any doubts about the reliability of your agent then opt for a firm that is registered with an internationally