4 Tips to Successfully Renting or Buying a Home Abroad

If you’re moving overseas, it’s important to make your new house feel like a home.

However, finding the right property as a foreigner isn’t easy. The debate over renting or buying is even more intense in an area where you’re unfamiliar with your surroundings.

Here are four tips when buying or renting a home in a foreign country:

1. Understand foreign real estate laws

If you’re thinking about buying a home, make sure you understand any rules regarding purchases by noncitizens.

In some cases, there are tax advantages to owning foreign property. Some countries restrict foreign ownership entirely.

Other countries may charge foreigners higher prices or demand that buyers pay cash. There can also be resale restrictions—controls to prevent foreign sellers from taking the proceeds out of the country at the end of an international assignment.

2. Evaluate economic stability

If purchasing property is a possibility, make sure it’s in your best interest. Check with the U.S. State Department about the economic stability and safety of the country you’re moving to.

3. Make practical decisions

Even in countries where there are no obstacles to prevent an expatriate from buying a home, it may be more practical to rent.

Ask yourself whether you want the convenience of being able to walk away from the home at the end of your time abroad. Do you want the pressure of selling the property before leaving the country or facing challenges trying to conclude a sale after you have left the country.

If you own a property, do you want to be directly responsible for maintenance and upkeep? It can be daunting for newcomers who don’t have a network of service people.

4. Seek expert advice

Whether you decide to buy or rent, you’ll need a trustworthy local agent to help you in your housing search, as well as an adviser to provide legal assistance and guidance when negotiating the final contract.

An experienced professional should familiarize you with local laws and customs, including the following:

• Verifying a clear title
• Letting you know if you need to offer a “gift” to help secure a transaction
• Outlining the details of the security deposit on a rental property, including the conditions of the refund at the termination of the lease. You should also know who’s responsible for the maintenance of the property, which utilities are included in the rent, and the conditions under which you can terminate the lease.

By taking steps to understand the housing market in a foreign country, you’ll ensure your next home is a picture of paradise.

Updated from an earlier version