Thinking about buying a property abroad? Possibly for a job abroad or just want to escape to some sunshine every now and then? Somewhere you can just hop on and off a plane? Check out our top tips and advice when buying a property overseas.
This article is aimed at UK citizens looking to move abroad and we focus on buying a house in three of the most popular European countries – Spain, Portugal and Italy.
Is it better to rent or buy?
If you are going abroad for the first time or want to spend time living in a different country you might want to rent for a certain period just to see whether you actually like the location. To visit somewhere on a holiday is very different to actually living there. But if you do love a certain location and are happy to settle, then buying really does have a lot of advantages!
Where do I start to begin the processes of researching and purchasing a second home in Spain/Portugal/Italy?
There are plenty of websites where you can view properties online and it’s the ideal solution to narrow down your search, whether it’s individual estate agent sites in Spain, Portugal and elsewhere, or large portals like rightmove overseas. Just put in the location, type of property and price bracket and you’re off and running. When you see a property you like online make an enquiry and the agent will come back and answer all your questions. You can then plan a viewing trip to see a number of properties and have the agents in place to show you around. And if you want a whole lot of information under one roof in a single day, then come along to one of our A Place in the Sun Live exhibitions.
How much does it cost to buy a property in Spain/Portugal/Italy?
The pound is currently strong against the euro making prices 20% cheaper than a few years ago, plus prices have dropped significantly in many countries particularly in Spain, down 30/40% in some areas. Ultimately you get what you pay for but there are some incredibly well-priced properties available right now, certainly when you see that £100,000 can get you a lovely three-bedroom house in Spain.
What are the five top tips you would you give to first time buyers buying a second home abroad?
Get your own independent lawyer to look after your interests, just as you would in the UK. The agent showing you around will be a very useful source of information but they are acting for the vendor so you need legal representation before you sign up to anything. The legal process in your country of choice may well not be the same as in the UK, so you need a specialist to guide you through to a successful purchase.
Plan ahead and stick to your budget. The lovely large house in France may stun you compared to what you can buy in the UK, but do you want to maintain that garden? Maybe you do and that’s one of the attractions, or maybe a local can be contracted to do it for you, but it needs some thought. As does access to your property, are there regular flights to and from your destinations? If not, then be realistic and flexible.
Don’t assume all things are the same as in the UK, whether it’s access to healthcare, the legal process, or connecting to the internet. A bit of research goes a long way, so if you are planning to rent out your property to offset some of the running costs, be realistic about how many weeks you will get.
Integrate; even if it’s just a painful attempt to greet a neighbour in their own language, a little effort will literally bear fruit when they drop round with a basket of apples.
Be cautious but don’t be afraid, whether it’s asking the agent a third time something you don’t understand, pitching in at a local event and getting involved, or wondering whether you have it in you to own a property overseas.
How can first time buyers find out about the area/neighbourhood they’re thinking about purchasing a property in?
Research; you need to visit the area and make sure you like it in-season and out-of-season. Find someone who lives there year-round if you can, expat groups tend to be active online and there’s lots of local information you can pick up from them.
What are the local laws that buyers need to be aware of when purchasing a second home?
While you should be aware of as much of the details as you can, you need an independent lawyer, see above.
Are there any additional costs that need to be taken into consideration?
You need to budget purchase costs into your financial plan, these vary from country to country and will be explained to you by your lawyer plus there’s lots of information available online. Check online to make sure you know what you’re in for.
Are there any upcoming destinations/neighbourhoods that are becoming more popular with second home owners?
Buyers are going back to what they like, particularly Spain which had become quite expensive up until 2008 but is now affordable again for lots of people. With regular flights to and from a range of destinations, lovely weather and fantastic food and culture, it’s by far the most popular destination. In fact 18% of all property sales to foreign buyers in the third quarter of this year were to British buyers.