Tips for Buying Property Abroad

In recent times, amidst an active period of globalization, people are increasingly migrating, traveling, and changing their lives and countries. The reasons can vary, including work, education, a desire for a change in climate, or the necessity of having a "second home" in a favorite resort destination.

The first and perhaps the most crucial question that arises when moving is the search for housing in a new and often unfamiliar country.

What can be advised to people facing this... I hesitate to call it a "problem." Indeed, the opportunity to acquire a cottage on the French Riviera or a chalet in the Austrian Alps is hardly a problem, but there may be some challenges nonetheless. First and foremost is the lack of knowledge about the laws of the country, especially those concerning real estate transactions. Therefore, the first, second, and third pieces of advice would be to consult with a professional real estate agent whose office is located in the territory of that country. In this case, you would primarily need to verify one thing - the agency's license, if such activity is subject to licensing in the country, or simply gather reviews and request the agency's portfolio. The real estate agent will handle all the rest of the work for you. This work can be extensive - from checking the property's status in the national registry to translating documents into the client's language, notarial services, negotiation with the owner in your favor, and identifying hidden defects... the list could go on endlessly.

What can you, as a prospective property owner, do during this time? Clearly and thoroughly describe your preferences to the agent. Keep in mind that 50% of the property's value lies in its location, which you cannot change at your discretion, unlike, for example, wallpaper. Therefore, you should take the selection of the neighborhood very seriously. It should be convenient for you above all else. Consider the presence of schools if you are moving with children, transportation accessibility, nearby shops, green areas - consider everything that matters to you personally. Then, in the suitable neighborhoods identified, you should clarify the average price per square meter and the dynamics of its growth over the past 5-10 years. It would also be helpful to learn about the city's development plan for the area - whether there are any major projects planned that could significantly impact property prices either positively or negatively in the near future. Your agent will undoubtedly assist you with this as well.

So, you've decided on the neighborhood. Now comes the most interesting part - selecting and viewing properties. At this stage, the assistance of an agent can be invaluable. A professional will tell you all the nuances of local construction that you may not have even considered. For example, in Montenegro, much of the housing outside cities doesn't have piped water but relies on cisterns with delivered water. In Southern Europe with mild winters, central heating may not be provided. A knowledgeable agent will explain all the pros and cons of utility costs, property taxes, maintenance expenses, and more.

Once you've chosen properties you like, it's essential to check their "cleanliness," including any encumbrances and additional costs associated with the purchase. Legislation varies greatly from country to country, with millions of nuances. For instance, in Thailand, there are quotas on property sales to foreigners, so it's crucial to verify whether the house you've chosen falls within the "foreign" quota. In Austria, non-residents require permission from the municipality where the property is located, and there are nine municipalities in Austria. In several European countries, there's a 4% transfer tax on secondary property purchases, but this tax doesn't apply to new construction purchases. It's impossible to cover all the pitfalls in one article. I don't want to seem pushy, but the advice remains the same - a professional agent specializing in the local market. Trust me; in the end, they'll save you much more money, time, and nerves than you'll spend on their fee.

Lastly, I'd like to offer one more piece of advice. Don't hesitate to ask your agent even the "silliest" questions, request explanations for anything you didn't understand immediately, and express even the smallest preferences for your new home. Ultimately, you'll be the one living there!