Archive for March 2015

Buy a Home Abroad Using Equity Release

Buying an additional property in your home country with funds accessed through an equity release plan is quite a popular trend. However, investing in a foreign property is also gaining popularity and can certainly pay off when it comes to taking a vacation and your eventual retirement. Just imagine being able to enjoy a holiday abroad without having to pay for a hotel room. Or how about retreating to your favourite spot in the world one day?

Whenever you consider purchasing a property in another country, it’s important to get independent, professional advice. Experts in this field are aware of all the latest trends, possible risks and the laws and regulations of foreign countries. There are many ways in which you can ensure that you reduce possible risks and get your money’s worth too.

The fist main tip is to ask about paying off the mortgage in that country’s currency rather than having to convert. Mortgage rates are known to be reasonably lower which will make buying a foreign property that much more affordable.

You should also establish how much you will require to put down as a deposit and how changes in interest rates could affect you. Enquire about any additional fees, whether they are upfront, monthly or even annual. You will need to consider all taxes, levies and other fees. As mentioned above, different countries have different laws and taxes often differ from those of your home country.

In certain instances, if you prefer not to deal with a foreign mortgage, you can use your entire equity release amount to pay for the property in full. So you will need to locate a property with a value that is either less than or at least equal to the equity release amount. That said, you should not simply rush out and buy blindly, you need to make sure that the property you are buying is in fact a sound investment.

Finally, before making any purchases, you must do your research on that country and look for the best areas to buy. You want to avoid bad neighbourhoods and you should visit this area at least once before signing on the dotted line. When you do visit, pay attention to various factors like where to find the closest supermarket, hospital and services that you might find handy. For example, a home in the mountains is a great place to retreat but these houses are generally far from civilisation. As such, in the event of an emergency, you won’t receive assistance as promptly as you normally would when living closer to the city centre. Take the location of your new home very seriously before making any final decisions.