When considering the purchase of a property overseas, preparation is the key.
The first thing that should be established is the budget available. Deposits required, current and future exchange rates, total cost of finance, legal fees and tax obligations, should all be calculated before viewing any potential properties.
Mortgages can be pre-approved well in advance, and this could save both time and money. Many sellers will not accept an offer, unless it can be proven funding is in place or has been Pre-Approved. For the purchase of a re-sale property, the closing date will typically be set at 30-45 days after the signing of the sales contract, and some contracts may impose financial penalties for late closing/completion. Appointing a lawyer, who is qualified in local law, may pay dividends at this stage.
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Exchange rates can greatly affect the cost of an overseas property purchase. Deposits and closing fees would normally be converted from your home currency to the currency of the country you are buying in.
Finally, tax which may be payable not only on income, but also on capital gains. Mortgage interest and other costs can usually be offset against this, however a tax advisor should be consulted, or you could employ the services of a local accountant.
Henderson Morgan can provide a comprehensive service to those thinking of buying abroad with excellent exchange rates, an premium account in GBP, US$ and Euro. Our bilingual mortgage team can secure a mortgage and our wealth management team can ensure your tax is managed effectively and efficiently.
We pride ourselves on exceptional customer service and your relationship manager will manage the process from start to finish to ensure a stress free purchase of a new home.
Contact us at advisor@henderson-morgan.com
