Here is a list of questions to answer before you think of investing
Investing in real estate abroad, certain questions need to be asked and answered and these are specific to the Country you are looking up to.
Some of these countries offer mortgages to foreign buyers but chances are that lower percentages of total cost are covered (which translates to higher down payment rates), or high interest rates are payable in comparison to residents.
Taxes on rental income and capital gains tax on resale are also caveats to be considered. Credit checks, ID numbers and verifications are part of the process in all countries.
There might be additional procedures also - for example, in Turkey, nationals of some countries are required to get approval from the relevant ministry before purchasing real estate while others don't have to do so.
1. Why do you need this home or houses? This reason can help you make a decision on which country to consider and what budget to have. Investors and young couples might look at re-investment and resale opportunities while retirees look at quality of life and cost of living. Some people might invest to get residency.
2. Does your country restrict investment in residential real estate in foreign countries?
3. What additional costs are incurred as a result of you being a non-resident? Is the extra cost reasonable in comparison to the property value?
4. Are mortgage options available and what taxes are payable?
5. What are the resale and inheritance rules of your country as well as the foreign country with regard to property?
6. If you are doing this for the residency permit, does the permit include your immediate family as well? Do you have to fulfill any other conditions?
7. Is the country close enough for you to conduct maintenance audits regularly?
8. Any other legal or documentary requirements of the host country
Some of these countries offer mortgages to foreign buyers but chances are that lower percentages of total cost are covered (which translates to higher down payment rates), or high interest rates are payable in comparison to residents.
Taxes on rental income and capital gains tax on resale are also caveats to be considered. Credit checks, ID numbers and verifications are part of the process in all countries.
There might be additional procedures also - for example, in Turkey, nationals of some countries are required to get approval from the relevant ministry before purchasing real estate while others don't have to do so.
1. Why do you need this home or houses? This reason can help you make a decision on which country to consider and what budget to have. Investors and young couples might look at re-investment and resale opportunities while retirees look at quality of life and cost of living. Some people might invest to get residency.
2. Does your country restrict investment in residential real estate in foreign countries?
3. What additional costs are incurred as a result of you being a non-resident? Is the extra cost reasonable in comparison to the property value?
4. Are mortgage options available and what taxes are payable?
5. What are the resale and inheritance rules of your country as well as the foreign country with regard to property?
6. If you are doing this for the residency permit, does the permit include your immediate family as well? Do you have to fulfill any other conditions?
7. Is the country close enough for you to conduct maintenance audits regularly?
8. Any other legal or documentary requirements of the host country
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