Buying property abroad can feel like a big gamble, but if you know the traps and keep these things in mind you'll be able to feel at ease investing overseas.
After all, now that we've reached the age where one of our greatest dreams can become a reality — owning a property overseas and living abroad — you don't want to see that dream transform itself into a nightmare.
Here are eight key tips to buying a home overseas:
- Get the lowdown on residency restrictions. Different countries have different requirements for people who want to live there. For example, you may be required to have a pension or there may be health stipulations – some countries don't want anybody with a medical condition. You can get all the information you need on this score by checking with a U.S.-based consulate office for the country you're interested in. Just Google "Panamanian Consulate," for example, and you'll be able to find a Website and phone number for that office.
- Hire an independent attorney. Before you even begin looking, hire a local and credentialed pro who knows the law of the land. Ideally, he or she should speak English and be completely independent of the sales agent or developer you might be working with.
- Use a real real estate agent. There are lots of "cowboy vendors" out there, each hustling his or her brother-in-law's house to an American tourist. Instead, look for someone associated with a real estate company, preferably with more than one office. As for the developer, check to see if he or she is part of the Federation of Overseas Property Developers, Agents and Consultants (FOPDAC), which means he or she is a credentialed pro with a track record.
- NEVER buy blind. It may sound crazy, but people do buy property sight unseen on the Internet. Usually they're pressured, the deal's "too good to last," or they don't have enough time to visit. But you absolutely must see it before you buy.
- Make sure the owner is really the owner. Sometimes people sell what's not theirs, especially to unsuspecting Americans. The owner must have a clear title to the property, and you should have your local attorney check it out.
- Keep what you buy. Local laws of succession determine if you'll be able to will your property to your family when you die. Also review local "eminent domain" issues with your attorney as, in some countries, under certain circumstances, the government has the right to just swoop in and take your land.
- Open a bank account in the country before you buy. It will save you lots of time and red tape when you find the property you want.
- Always do a survey – even if you have to bring your own reliable surveyor along the plane with you.
For more, be sure to check out my video on buying a home abroad.
