14 June 2013
The Perks of Buying Real Estate Overseas
Buying real estate in a foreign country often means a lower price. The cost of property, like all other costs in a free market, is determined in part by supply and demand. If you’re looking for a property downtown in any major city, prices will rise simply because demand is high and space is hard to come by. Another factor on real estate prices is the economy. By scouring the globe for real estate in places where land is cheaper and the economic situations are ideal for buyers, you can get a bit more for your money.
Once you’ve purchased real estate, you’ll have to pay property taxes on it, but some countries have lower property taxes than others. Property taxes aren’t something you only pay once, like sales tax, you’ll have to pay property taxes each year for as long as you own the property. If you can find a country where property taxes are lower, or even better, non-existent, you can save a lot of money.
Maintaining a home can be a major expense, especially when you aren’t living in it for most or all of the year. Usually, you’ll need to pay for a property manager or other service providers to take care of the property while you can’t. The cost of maintenance usually comes down to the cost of labor, so if you can find a house in a country with lower labor costs, there is one more place to save some dough.
Of course one of the major perks of buying real estate (international real estate having this particular perk) is owning property in an exotic location. Whether you want the location to lure in renters or future buyers, or you just want to live in the home yourself, buying overseas can add a bit of excitement. With the potential savings as well, there’s no reason not to expand your search.