Want to earn more money from property investment? Well, investing in property overseas is always a great chance for you to create massive wealth. The expert always said, investing in property overseas is not only putting your money into other country’s economy, yet it can generate the high return to you.
But, there are some things that you should consider before decide to investing in property in any country. Today, we will discuss about which 5 things that you should consider about;
1. Residency & Citizenship Schemes
In certain countries, investing in property may make you eligible to apply for a residency visa or even a citizenship scheme. For example, some countries offer a “Golden Visa” to investors. Golden Visa is a term given to a residency permit. This is granted by only certain European countries, including Portugal Malta and Cyprus.
It’s very important to get yourself understand about the concept of residency and citizenship. It is advisable to consult some property experts who have invest in property overseas.
2. Reputable agents and lawyers
Always find yourself a good lawyer who is independent from the proceedings and therefore has your best interests in mind. Avoid taking on a lawyer recommended by the developer or estate agent who is selling you the property as they can occasionally be acting for both parties.
It is advised to check if they are:
➥ Qualified to practise in both the UK and overseas
➥ Speak both English and the local language
➥ Specialised in property law
➥ Experienced in working in your chosen country
It is advisable to seek for help from Law Society or property investment experts (may intro you the good lawyer to helping you) if you decide to investing in property overseas. Besides, do search the country law itself as well as the property law.
3. Taxes
Taxation is complicated, particularly if you are buying property abroad. Make sure you do your research on what taxes you will be eligible for; (this ultimately depends on the country you are buying property in). When in doubt seek expert advice and make sure you’re 100% clear on all the processes involved.
➥ Double taxation agreements are available in most European countries (make sure to check they have them in your chosen country). These can help prevent you from being taxed twice in both the UK and your adopted country.
➥ Income Tax might have to be paid in your chosen country if you rent your property out while you are away.
➥ You will be subject to Capital Gains tax if you decide to sell your property.
I strongly agreed with this. Taxation is very complicated. Do consult the lawyer or experts about taxation matters of the country that you chosen.
4. Location
When buying property anywhere in the world, one of the key concerns is the location, as this can have significant impact on services you can access. For both business and leisure purposes, it’s important that your property is within reasonable distance to train stations, taxis and airports – all the services you’re going to need to make your existence more comfortable.
If you are planning on moving your family with you, you’ll want to ensure that you have access to a reputable:
➥Hospital
➥GP surgery
➥ School
➥ Quality retail outlets for food and leisure
Also consider the pros and cons of living in urban or rural areas. Rural regions tend to be quieter and more authentic for culture. However, cities and towns tend to be more diverse, with lots more to do and experience. Urban areas will also have services closer to hand such as electricians and plumbers in case something in the house goes wrong.
“Location, location, location” which is the property investor always replied with the phrase. Make sure you have do the research of which location is good for property investment and be sure its location will bring you high profit over time.
5. Check and make copies of the paperwork
Ensure that you have a written confirmation of any negotiations. For any transactions or payments, try also to ensure you have paper receipts rather than email confirmations.
There’s nothing wrong with keeping copies of all your business transactions because if anything goes wrong, you have proof of contacts, and can retrace your steps. Everything from details of the property, to the valuation summary should be filed.
Don’t forget the small but crucial aspects of property investment:
➥ Does the seller or developer own the title deeds? Can these be transferred to you?
➥ Particularly for investment, or property still under development, check the title deeds actually do exist (make a copy of these and, as above, hire a good lawyer to check also)
➥ If you are intending for your family to inherit your property, draw up a will
Although hire a lawyer isn’t cheap, but they can help you to check all the documents as well as protect yourself from legal issues. Besides, it is advisable to making a copies of all the important documents. This is very helpful if you are participate in Golden Visa investment programme because the government is likely to check on your investment’s evidence.
In conclusion, whether you’re purchase a holiday property for yourself or investment purpose, the transactions over property are not as easy as your country. You will need to take some times to study the above matters. Besides, do consult some experts and lawyers before decide to investing in property overseas, and always fully clear the terms and conditions of the agreement. Furthermore, you must understand yourself whether you are suitable to investing in property overseas which according to your financial status.
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