Buying Property Overseas: Avoiding the Common Investor Pitfalls - Modest Money
Buying Property Overseas: Avoiding the Common Investor Pitfalls
When you think about investing in property, you might only think about what’s in your neck of the woods. But, if you only look in your own country, you might be missing out on fantastic deals in other countries. With that said, buying overseas properties can be risky. Here’s what to look out for and when to snap up some property.
Decide on a country you’d like to own property in. There are so many great places to live right now.
Portugal is one of the best. Yes, Portugal. The Algarve region offers low real estate prices compared to the rest of Europe and there’s a wide price range. If you want a million-dollar home, you’ve got it. If you only want to spend $165,000, you can get something at that price range too.
There are no foreign ownership restrictions, but there is plenty of oceanfront property and amazing views.
Belize is another great place to own property. On Ambergris Caye (the largest island in Belize), there aren’t many homes that aren’t beachfront. The weather is mild, it’s a tropical landscape, and there are so many things to do here, you’ll think you died and went to heaven.
Best of all, you can get a 2-bedroom beachfront home for about $250,000. If you’re a bit short on money, a one-bedroom studio will run you $150,000 or less. Amazing.
If Belize isn’t quite your style, how about Nicaragua? Granada, was founded in 1524 by Spanish conquistador Fransisco Fernandez de Cordoba. It’s the oldest colonial city in Nicaragua. Its selling features? Warm weather, freshwater lake, and a very low cost of living. A two-bedroom condo costs about $170,000, while a fully renovated home runs you between $100,000 and $400,000.
And, if you’re really looking to live on the cheap, a small un-renovated hacienda can be snapped up for $50,000.
And then there’s Panama. Buying property here makes you feel like you’re either a mobster or a wealthy CEO of some kind. Prices are stable, with a brand new full-amenity condo on the beach costing less than $300,000. If that sounds too good to be true, it might be.
Panama City Beach properties are known to have property title issues because some beaches are nationalized. So, always check with a local lawyer and real estate agent first and bring this up before you go looking for properties.
The Dominican Republic is a favorite spot for honeymoons, but you don’t have to be just married to buy overseas property here. The Samana Peninsula offers pristine beaches and whale-watching as well as rich nightlife.
Prices for one-bedroom apartments run $100,000. Even high-end developments are usually no more than $300,000.
Turkey might not be a country you thought about before, but it should be on your radar. Istanbul (not Constantinople) is large and is currently going through a major boom in the real estate industry. If you buy in now, there’s still the opportunity for a good deal. A one-bedroom condo sells for about $50,000.
Do this before you start searching for properties that are for sale abroad. What you may not realize is that the real estate market in some countries isn’t the same as it is in the UK. For example, if you buy a home in Nicaragua or Belize, it’s very much a caveat emptor.
Sometimes, you might find yourself in the position of being offered a home by someone other than the person who owns the house. If you don’t discover this fact until after you’ve handed over a check, you don’t have much in the way of recourse. You’re expected not to get into trouble.
A lawyer can give advice which can help prevent this kind of thing from ever happening. Make sure the attorney represents you, not the seller, agent, or developer. He or she should only be working with you. Ideally, the lawyer won’t even know the other parties involved.
Finding a local real estate agent is going to be key in getting a good deal. Real estate laws and regulations vary by country, and most agents these days start their search on reputable websites. But, without an agent to guide you through the home, the buying process, the lending process, and the contract itself, you really don’t know what you’re getting.
How much space do you really need? This should be pretty easy to figure out, but it’s something some people overlook. If it’s just a summer or seasonal home, you might not need a lot of space. If you’re looking to retire here, plan on getting a home sufficient to house all of your belongings.
Ellis Shaw works as a real estate manager. He loves writing about the real estate industry online. His posts can be found mostly on property and real estate sites.
7 thoughts on “Buying Property Overseas: Avoiding the Common Investor Pitfalls”	
Funny enough we have talked about buying a home in Nicaragua, since my wife is from there and still has family living in the country I would defer to her, but having been there a couple times the country is beautiful and I’m sure we would enjoy our purchase.
I’ve never considered investing in property, I’ve only looked at investing in US property as a Canadian, which is the most common thing we do. We like our Florida summer homes 🙂 But looking for property in Turkey isn’t a bad idea at all, I’ve been there on vacation once few years ago and the tourist areas that I visited were really nice!
Been wanting to own a property overseas. One place in mind is in Mexico. I have been searching about the laws and pros and cons about getting property. Thanks for the tips by the way.
My brother in law is resigning from his Telkom job and he will be paid a large sum of money, almost $400,000. He mentioned he intends to buy a Holiday Villa in Turkey and i believe this kind of advice is timely for him at the moment let me share this with him right away.
Just reading through your tips here makes me feel an urgent need to get out into the world. It’s a human birthright to travel and experience culture shock. But I don’t just want to travel, I want to find a beautiful new place to live. These are great tips for just that.
I think its also key to fully understand the property buying process of the country in which you are buying the property. For example in France the process is much different from that in the US or UK. Using a reputable local expert or property consultant is really important especially if you don’t speak the language of the country in which you are buying.
It is so hard to decide where I want to buy property but I know I want to find it in another country. You suggested quite a few great options for places to build in south America. I might just have to travel around and check these places out before I decide to buy. If I visit then I can ask a local expert about the property as well and not just rely on the internet. Thanks for the help in making real estate decisions.