In this video Blog, Rui Hoe shares with you 10 considerations you need to make before buying property abroad. Some buy overseas for a better investment opportunity, some buy for the perfect dream home. But whatever the reason, here are the top 10 considerations you need to make before you buy: 1. Understand the real estate ownership laws Every country has a different take on regulating foreign ownership. So see what you can and cannot buy. If you check our website under the guide page section, we have one done up for Malaysia: (http://www.ppinpoint.com/en/guide-malaysia) 2. Conduct viewing trips to your target country Unless you are very familiar with the country and location, always view the property in person because it is really the best way to conduct a thorough research before you buy. 3. Understand the property market cycle. Every country is in different parts of the cycle and you need to see if the market can support your property purchase. If you find that the market you are interested in may not be as buoyant as you would like, don’t be discourage and consider looking at it long term. 4. Recognize that any foreign income will be taxed in your home country. If you are intending to rent out your second home, you would have to declare this income to the tax man in your home country. You might also need to declare it in the country in which your second home is located depending on the double taxation agreements in place between the two countries. So make sure you seek solid tax advice. 5. Understand the foreign property tax implications. This is important as property tax and stamp duties in some countries can be very different from your home country’s tax rate. 6. Find out the purchasing, management, selling and travel costs of your property. Factor in the legal and agency bills that you will incur when buying, renting and selling your property. Don’t forget to factor in your regular travel costs needed for visiting your second home into your budget to avoid any surprises. 7. Be aware of the legalities surrounding the contracts you enter into. Find a reputable lawyer and get key documents translated! Not understanding the language in which your legal contracts are written is a big NO! 8. Find out if you are eligible to obtain a mortgage. Cash may seem like the easiest and best way to go about purchasing a home, but it's not wise to tie all that money up in a slow to liquidize asset. So find out if you are eligible to obtain a mortgage at home and in the foreign country to get the best deal for you. 9. Make a will to cover both local and foreign inheritance laws. Specialist legal advice should be sought when you hold property in more than one country as inheritance laws not only differ from country to country, but certain foreign inheritance laws can completely contradict and invalidate your main will. 10. Consider buying through an offshore company. Whether this route is the best option depends on your individual situation and the country you are buying into. If you do buy through an offshore company, then find out how easy it is to transfer the property out of the company and what are the implications when you want to take the profit out after you've sold your property. Directed by Rui Hoe and follow him on 1) Facebook: http://www.facebook.com/rui.hoe 2) Instagram: https://instagram.com/ruihoe If you want to voice your opinion, please leave a comment or email your feedback to rui@ppinpoint.com and visit our website (http://www.ppinpoint.com/property-new-articles/en) for all Property Pinpoint videos. Please note that opinions, real estate practices, prices and data changes over time, so keep in mind the date when this video was published as the information could have become irrelevant over the past days, months and years.
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