Buying a property abroad exerts a great attraction on many people. No wonder, because depending on the country, completely new possibilities open up – regardless of whether someone relocates their residence or only wants to use the property on vacation.
But as appealing as buying a real estate may be, under such circumstances he brings several pitfalls with him. In several areas, the differences compared to real estate acquisition in Germany can be very large. We would like to point out the greatest dangers in this article.
When it comes to costs, many people think of the purchase price as a priority. But beware, depending on the country can incur considerable additional costs – both one-off and permanent follow-up costs.
An excellent example is the property taxes. There are countries in which, compared to Germany, much higher property taxes are incurred. Depending on the object they are by no means to be taken lightly. Over the years, they can add up to a staggering amount, making the real estate purchase much more expensive than originally thought.
Of course, the legal framework is completely different. Accordingly, it must be particularly careful with the contract / purchase contract. In general, it is advisable to visit a specialized lawyer on site, who thoroughly checks the purchase contract and, if necessary, also provides for rectification. Those who blindly sign a contract instead take a high risk.
Incidentally, the divergent legal framework is not limited to the purchase contract. Depending on the country, it may be, for example, that property owners are significantly less well protected by law. A typical example is expropriation: In Germany expropriations (eg for the construction of infrastructure) are made comparatively rarely. In addition, the persons concerned are entitled to reasonably adequate compensation. In other countries this need not be the case.
The financing of the property is often completely different. Real estate loans with variable interest rates are still very common. But now is a conclusion risky: while market rates may be low, but in ten years, this could change fundamentally.
Outgoing borrowers should therefore examine in detail how secure their proposed funding actually is. Even if the local people conclude such a variant without hesitation, it can be useful to take a different path yourself.
An equally underrated topic are entry requirements. Anyone acquiring real estate property within the European Union need not worry about it. It looks different if the property is located in the USA, for example. There are very strict entry requirements. It may happen that due to such regulations it is suddenly no longer possible to enter the country. This would make the property unusable.