Many people now days are buying a second home abroad, say Dubai
as either a holiday location or because they have decided to
relocate to that area due to work commitments or because they
are retiring and would like to enjoy a bit more sun.
When people are thinking of buying a property abroad there are a
number of issues you may need to consider before making that all
important purchase and I list below some of them.
1. How much capital do you have available to invest in the new
property and if you need to obtain additional capital for the
purchase will it be through your current lender or will you be
requesting it from another source, say a lender in the country
where you are looking to purchase your property. If you wish to
lend from a financial institute in the country of your choice
you will need to investigate what percentage of borrowing you
allow, in some countries you will only provide them with an 80%
loan, which means you will need to provide the other 20% capital
for your purchase.
2. The type of property you are wishing to purchase? Will it be
a town house, an apartment or villa? Also what sort of location
are you looking for? Do you want to be in a gated community or a
complex, the country, town or village? Also what sort of
facilities do you want close to your property, such as shops,
restaurants, bars, and sports facilities?
3. Make sure that you contact a reputable real estate agent, one
who will be able to provide them with all the necessary
information on the property that you are looking to purchase,
including all building regulations and planning permissions that
should be held. Also this agent should be able to put them in
contact with a solicitor/legal advisor who will be able to deal
with the drawing up and completion of the contracts of sale.
4. As stated above, where possible request that the real estate
agent provides you with the necessary paperwork relating to the
buildings legality. In some countries an issue has arisen where
people have brought properties and then find that permission for
the property to be built has not been given and the consequences
in some respects have ended up with these people not only losing
their homes but also all the money they have invested in the
property.
5. Another thing I would suggest you carry out is research on
any local customs or laws for the region you are looking to move
to, as in some countries you may find their laws and regulations
are not so relaxed as where you reside now, say for instance you
decide to purchase a property in Dubai you will find that you
are only allowed to drink alcohol within the confines of your
own home, in hotels or at a licensed premises any where else and
you could find yourself at the mercy of the local police force.
Finally another reason for buying a second property abroad that
could influence your decision is the Cost of Living i, for
example you may find that the money you have to buy a property
at home, say a two bedroom apartment will in fact allow you to
purchase a three bedroom Villa in the country where you are
looking to purchase. By investing in the right property in the
right area you can providing yourself with an additional income
from rentals and a property that will incease in value over the
coming years.
I hope the above has given you food for thought and helps you
when making a decision about purchasing a property abroad.
About the author:
Ahmed Raz is a director of http://www.dubailiving.co.uk Which
includes the informative Dubai Lifestyle and Property Forum
http://www.dubailiving.co.uk/forum/index.php
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