Purchasing international real estate is becoming more alluring to investors & vacationers world wide.Pragmatically speaking, it is a way to diversify an investment portfolio and/or to provide rental income.
Whether your considering a rental purchase in the states, tuscan villa in Italy or a beach side getaway in Dubai. There are some principles that should be followed when buying real estate anywhere.
Universal Principles of Real Estate Purchasing -
- Be certain your contract is with the person or entity that has full title to the property.
- Prepare & research the local tax laws. Some countries have no taxes, other have very high taxes. Some levy taxes only on legal residents, others may tax foreigners at a higher rate.
- Verify the government recognizes property ownership. There are still places in the world that DO NOT - notably if you are not a born citizen.
- Consider YOUR governments tax laws. If you live in the States and purchase a home in Ireland as your principle residence, you will not escape property taxes. Speak with an attorney regarding Capital Gains repercussions and currency transfer losses.
Familiarize yourself with the culture you wish to invest your time and money in. The marketing of real estate differs from country to country. For instance, in a technologically advanced , super savvy place like Great Britain, they still do not utilize a multiple listing system like we do in the states. Many agents do, however, more DO NOT. This makes purchasing real estate in Europe more of a local affair, and requires research, networking and connections.
Other things to consider when purchasing real estate Trans Nationally:
- Political Climate
- Currency Exchange
- Ability to work or own a business as a 'foreigner'
Diversifying your portfolio, purchasing a second (third or fourth) vacation home and/or investing in commercial real estate internationally is not for the faint of heart, but can be EXTREMELY EXCITING AND LUCRATIVE. Whether your purchasing real estate in the United States, Mexico or China, competent representation is a necessity along with research, research, research!
Consult Roberta Burish, a trans national referral certified agent for free consultation when considering the purchase of real estate in the states or abroad.