Essential Tips for Moving and Buying Property Abroad

Buying a property can be both exciting and daunting – especially if you are purchasing aboard. Overseas property purchases come with their own challenges, such as understanding local tax regimes, navigating new legal systems and dealing with multiple parties across different time zones. It’s important to be aware of these challenges before making your investment and to seek advice from professionals if needed.

Benefits of investing abroad

Purchasing a property abroad can help diversify your investment portfolio. Generally speaking, diversifying your assets across different countries can help lower risk. Investing in an overseas property could provide an additional source of income if you decide to either rent it out full-time, or as a holiday home. Purchasing in tourist destinations means you could enjoy the property yourself, but be able to rent it out during peak seasons for extra cash.

What do you need to consider when moving and/or buying abroad?

Before taking the plunge, it’s important to consider several factors. As with buying a domestic property, securing a foreign investment property takes time and can quickly become very expensive.

  • The timing of your purchase is crucial, as exchange rates can fluctuate quickly. Consider speaking to a dedicated forex dealer to monitor and secure the best rates available.
  • Overseas legal systems can vary substantially to the UK legal system, so it’s worth seeking specialist legal advice from either a local overseas firm or a UK firm whose focus is on overseas property purchases.
  • Tax is also essential to consider. Overseas tax regimes can differ greatly to the UK tax system, so be sure to obtain local tax advice if you are unsure how you are affected.
  • A foreign property investment might look attractive at the outset, but as we have seen recently, geopolitical events can rock a country’s housing and currency markets. It’s worth keeping an eye on the news to see if there are any additional risk factors you may want to consider. For example, the Pound has been weaker against the Euro since Brexit, and the tensions within the Middle East have had knock-on effects for the wider global economy, including currency markets.
  • If you plan to invest in an owner-occupier property, it’s important to be aware of the cost of living in the country you’re moving to. For example, the vast majority of access to healthcare is free in the UK, but elsewhere you may have to pay for routine check-ups and treatment. It’s worth factoring in a new monthly or yearly budget before deciding whether moving abroad is right for you or not.

How can IFX Payments help?

At IFX Payments, we have a team of dedicated forex dealers to help you with your foreign property purchase:

  • You’ll get your own personal dealer to manage your account and help you navigate foreign currency markets.
  • We offer competitive exchange rates and transparent fees on international transfers, meaning you can keep more money in your wallet.
  • We can help limit your exposure to market fluctuations by providing limit orders and stop losses, so you can choose to trade when you feel comfortable.
  • If you’re thinking of investing in a property abroad, get in touch with one of our forex dealers so they can guide you through the process, and you can buy with peace of mind.
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