Preparation - The Key Message
This will save to a lot of wasted time AND money. We STRONGLY recommend that you make contact with us BEFORE you go to look at any property. That way we can deal with all of the key issues (such as those listed below) calmly and clearly, before you get involved in the rush and pressure always associated with buying a specific property anywhere in the world.
Preparation Check List
Why are you buying the property? Is this for retirement, a holiday home, a holiday home that you want to pay its way or a pure investment. If you are buying a property as an investment, see our Guide to Buying Property as an Investment.
Which country and area will suit you best? If this is an investment, where are you likely to make the most money?
Which type of property is best for you? Villa, apartment, townhouse. This is not always obvious.
How are you going to pay for the property? Are you going to take out a mortgage? If so, where and for how much? What are you doing to guard against the risk of fluctuating exchange rates?
How are you going to manage the property? If you want to let the property, who are your target tenants? Who will manage the lettings? How much money will you make?
Who should be the legal owner of the property? The right choice here can save you £/€/$THOUSANDS, even on an ordinary holiday home. See below for more information
We will be happy to assist you with all of these issues.
Who should own the property?
Getting this question of ownership wrong is probably both the most common and the most expensive mistake people make when buying property overseas. There are many people who could be made the legal owner of the property or, as the case may be, the shareholders in the company that owns the property. The best choice is, often, not obvious.
Getting this wrong can cost you tens of thousands of pounds/euro/dollars of totally unnecessary taxes, during your lifetime and on your death.Most local lawyers will be unable to help you make this decision as it involves an understanding of both the local AND your own legal, tax and inheritance systems.
We will be happy to assist you in making this vital decision.
What are the options?
There are many ways to purchase the property. These include:
- in your own name alone
- in your name and in the name of your co-purchaser(s)
- wholly or partly in your children's
- names or in the name of somebody
- whom you would like (eventually!) to inherit the property from you
- in the name of a limited company,
- whether English, Gambian or "off-shore"
- via your SIPP/SSAS pension fund
- via an investment fund (REIT, PUT etc)
- via an investment club
- via a trust
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