What Are the Considerations of Buying Real Estate in Off-shore Markets?December 29, 2010
Buying real estate is always a difficult task. Perhaps the most difficult real estate decisions you will have to make are those related to off-shore markets. There are tons of off-shore real estate markets — such as those of
Australia, Central America, and Southeast Asia — that are currently on the rise. This means that the options for buying real estate abroad are many. Still, your chances for success depend on how well you know the market and how well you know how the market works. Here are three considerations to keep in mind when buying real estate abroad:
1. Remember that your decisions on real estate purchases will differ greatly depending whether you plan on using the property as your own place of residence or you plan on investing for re-selling purposes. Either way, you will have to do diligent research on the property before committing to your decision. Be sure to know everything from property regulations to taxation practices, budget, and travel costs.
2. The reason travel cost is important is that you should always factor into your budget the likely expenses for travelling back and forth between your primary home and your second home abroad. These prices can pile up, so it’s best to know now if you can or cannot afford it.
3. You may want to work together with an off-shore company to get some help with getting clearance for tax exemptions, expense reductions, and legal claims.