New Build
If buying from a developer, ascertain their track record and how long they have
been trading. Check comparable properties in the area and any re-sales offered
on the same development.
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Cooling off
Before making any commitment, try to give yourself a ‘cooling off’ period
if you see a ‘must-have’ property and are tempted to put down a deposit
there and then.
Location, Location, Location
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Conduct research about local facilities & transport. People gravitate to locations
with a nearby airport, especially if it’s served by a budget airline. Proximity to basic
facilities like restaurants & shops is also important. Talk to people who live in the
area to get a better feel of what it’s like to live there. Consider the property off-season as
many resorts are seasonal and practically shut down when the tourists return home.
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Local Money
Open a bank account in your chosen country and ensure you obtain a ‘Certificate of
Importation’ for the money you bring in from your home country. Set up standing
orders in your local bank account to meet local bills and taxes. Failure to pay your taxes in some
countries such as France, Portugal and Spain, could lead to action by the authorities.
Extras
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Bear in mind that bills don’t end at the asking price. Lawyer’s fees, IVA, local &
national taxes and insurance must be met in your host country and can often add a
further 10% to your cost of acquisition. Ensure you are aware of the costs charged by the
legal and government authorities for purchasing a property in your chosen country.
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Tax
Check the inheritance and capital gains tax laws of the country where you
are buying. For example, in France your children automatically inherit rights
to your house; your estate may not automatically pass to your spouse and
you may, therefore, need to compile a separate will.