Mistakes People Make in Buying Real Estate Abroad
Sometimes, a very good holiday and a round or two of some sunset cocktails in a tropical paradise can all lead to regretful financial decisions. Not a few foreigners have been led to buying real estate in some holiday country without giving so much a thought.
Instead of enjoying a vacation home in a mini cottage facing the Pacific somewhere in the Philippines, or looking forward to retiring in your very own home straight out of Mamma Mia! the movie in some island in Greece, it is replaced with woeful, regretful memories of paying hastily, impulsively and losing valuable savings and possibly get into a really big, bad debt.
The biggest mistake, really, comes from haste, overeagerness, and acting on impulse. Click on this video from South Bay Association of Realtors for its advice on how to buy real estate abroad– lots of good points that you can actually use someday.
It’s not all fun and games– investing abroad takes a lot of courage, as there are risks involved. Point is– don’t let the good things and good words about your dream vacation destination get you carried away into buying real estate property abroad. Apart from this, here are the other most common mistakes people make when buying real estate property overseas. In addition, our previous article might be really helpful to read first before continuing reading this. Take note, you would want to avoid the following:
- Falling for deals that are too-good-to-be-true. The most attractive deals are those that come with super low rates. They offer shoreline areas at the price of a wine-and-steak dinner back home. Irresistible as it may seem, be wary of these kinds of offers because these sellers know just how much your foreign money can afford. Remember to research–whether online or through the locals. My “go-to” site for real estate news can really help you. What they offer cheaply on the price of the property, they might just take back in hidden and surprise costs.
- Marrying a local to get the right for a titled property in your country of choice. While there are many countries in the world that are open to foreigners owning properties in their lands, there still are countries that do not allow non-citizens any right for ownership of property. And some, especially the enterprising ones who are looking to buy for investment purposes, take in a local woman to marry just to get those rights by virtue of marriage to a citizen. While we can never judge your relationship, this may not be the best option finance-wise. Find a real estate lawyer to give you proper advice in these situations rather than risk getting scammed and losing your investments to equally enterprising locals.
- Forgetting the figures. It is really easy to fall in love with a land- and seascape that you may just forget how much it is truly worth and spend all your cash on it. You might end up spending more than what it really is worth, or worse, spend more than what you can actually afford and end up in debt for something that you cannot easily resell or earn from to pay off for debts.
It is so easy to fall in love with something good. But let not your summer romance with your dream destination end up badly and in financial mire by rushing into ‘marriage’ with it. Get to know more about your dream destination and only make a decision when you’ve thought about it over and over and over.