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Never sign a contract
that you do not understand (for example - if it is in a
foreign language).
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Always ensure that
you seek specialist advice from independent Solicitors,
Architects and Surveyors before considering a purchase
overseas. They should be proficient in your chosen
country's laws and processes and also know the specifics
involved in buying a property there.
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Before proceeding
with the purchase (and would especially apply to a
re-sale property, regardless of age), ensure an
Independent Valuation of the property is carried out,
which should point out any problems with the property
such as subsidence, damp, wiring defects etc. and could
also possibly highlight any boundary disputes etc.
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Ensure you do not
inherit a debt on the property before you purchase,
which a solicitor should be able to check - ie: If the
developer has borrowed money to build the development
and this amount has been allocated against each plot as
additional security to the developer's bank.
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Always give yourself
a `cooling off` period if you see a `must-have property`
and are tempted to put down a deposit there and then.
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Try to arrange your
mortgage finance 'in principle', before agreeing to
purchase the property, or before signing any contracts.
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If you are buying off
plan and need to transfer foreign exchange to pay the
deposit and thereafter regular instalment payments then
we suggest you use a professional money exchange
service.
Please
click here for details on buying foreign currency and
live exchange rates for money transfers.
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It is best to arrange
your mortgage in the currency that you earn in where
possible, unless you are going to receive rental income
from that property in the local currency and then this
may be a possible alternative option, dependent on the
lender's criteria.
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Think about combining
your cash with friends or family as it can give you a
greater financial reach allowing you to get better
value for your investment. For example, perhaps on your
own you can only afford a 1 bedroom apartment but with
the combined strength of family and friends, you may get
a 3 bedroom apartment or even a villa.
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Check with the agent
or vendor about the costs charged by the legal and
government authorities for purchasing a property in your
chosen country.
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Where possible, open
a bank account in your chosen country and ensure you get
a Certificate of Importation for the money you bring in
from your home country. Set up standing orders in a
local bank account to meet bills and taxes. Failure to
pay your taxes in some countries, such as France,
Portugal and Spain, could lead to court action and
possible seizure of your property.
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Remember that the
payment does not end at the asking price. Lawyer's fees,
Taxes, Insurance etc must all be met in your host
country and can often be more expensive.
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In the UK currently Barclays and Lloyds
TSB are offering overseas mortgages for properties in
Dubai. HSBC is also offering overseas mortgages but only
on selected developments.
