What you need to know about buying property abroad

Are you ready to buy your dream home on the beach? Here are some things to consider before making your decision.

Real estate prices in Canada are quite high when compared to other countries, and many Canadians looking to buy a second home or a more affordable primary home consider buying outside of the country.

In many countries, the prices of homes have been decreasing in recent years, making them very desirable to Canadians.

Real estate is an investment, and you want to buy a property that has the highest return potential. Look at all of your options and consider which ones are most likely to increase.

Working with a local real estate agent

A local real estate agent should be able to give you detailed reports about the housing market and where it’s expected to go, as well as how the home prices in the neighbourhood you’re looking at have changed over the last decade. This should paint a clear picture of whether you should buy that property or look into something with more growth potential.

Unless you’re very familiar with the destination, it’s always a good idea to do as much research as possible about it. You’ll want to find out about crime, standard of living, costs of living, and more before you make your decision. You don’t want to buy a home somewhere only to realize that your family could be in danger, or that you can’t afford the lifestyle.

It’s also important to look at things like property taxes. People often forget about how many costs are involved in owning a home. When buying abroad, you should consider the same factors.

If you’re planning on renting out your new home to tenants, you will have to spend a lot of time researching the rental fees of the area.

Hiring a property manager

If you’re going to be in Canada while someone else is renting your property abroad, consider that you will likely have to hire a property manager to take care of the work and maintenance of your home while you are away. A property manager can cost as much as 25 per cent of your rental income, depending on what country and neighbourhood they will be working in, and you should calculate your income potential based on that.

Buying property abroad can be difficult, but with a bit of research and patience, there are some amazing deals and opportunities to be had. It doesn’t hurt to shop around and see what is the best investment.