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The How and Why of Buying Property Abroad

Because this is a web post and not a ten volume work of international real estate, we’ll have to limit ourselves to very general explanations. But this may be sufficient to make interested parties out of those on the fringe, and action-takers of the people already interested. There are many reasons that people buy property overseas. We’ll look at a few of those, as well as novel ways that these investors and travelers are funding the endeavor.

People buy property overseas for a variety of reasons. Commonly, it is done as an investment. Because of the differences in international currency values and real estate markets, it’s often easier (and more valuable in the long run) to buy property overseas than it is to find a great real estate deal in one’s home country. That’s the problem with living in a wealthy nation. On the one hand, your currency is worth quite a lot. On the other hand, so are all of the real estate options. By carefully selecting appropriate property for the needs of the individual investor, as well as anticipating beneficial appreciation in the region, real estate investors can make a lot of money buying property overseas.

Photo Credit: Emily Amie L. Cabillada via Compfight cc

But this isn’t the only reason people buy property in countries which are not their own. Some people buy a house for vacations and holidays, renting it out when they are not using it. Others buy property for their university students while they are living abroad, using the excuse to buy houses for the purposes described above. Others are looking for a property to live in when they retire and move overseas permanently. There is no limit to the reasons someone might make this sort of purchase, but there are limits to the ways in which buyers finance these expensive projects.

For those who are not independently wealthy, financing is necessary to buy or build a home overseas. Those savvy in overseas asset tips would likely direct interested parties to a new breed of international finance companies that has sprung up in the past decade, particularly in the UK. These are financing options which exist outside of the traditional banking sector. Some are self-identified P2P, putting borrowers in touch with private lenders or capital sources. These small, nimble companies are usually able to offer better terms and service to their international customers. And some of them aren’t even so small any more. With individual companies clearing tens of millions of dollars each year, this is no cottage industry.

The same goes for the companies which actually transfer the funds. In the old days, it used to be very expensive to send money overseas. Today, there are many new companies which offer the service for much less, at much faster rates. While expanding out from Europe slowly and steadily, many of these (primarily) British companies are increasingly international in their provisions, accepting customers from around the world. For people looking to ship large amounts of money overseas to buy property, it is imperative that the money be transferred at the most affordable rate, a service that many companies are scrambling to fulfill.

Violeta-Loredana Pascal

Violeta-Loredana Pascal is a business coach and mentor at her company - AdvanceNowBiz - with more than 15 years of business experience and a background in public relations, marketing and communication. She is passionate about reading, blogging and traveling – see Travel – Moments in Time and Earth's Attractions. Follow her on Twitter - @TravelMoments and @EarthAttract.

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