Tips for Buying Property In a Foreign Country

Having now lived in about a dozen countries (counting living as spending more time than a couple of weeks), and having window-shopped for property in all of them, here are a few things that I’ve learned.

1. Property websites differ widely. In some, the offerings are updated regularly and reflect current prices. Others are dated. Some carry photos for years after the property has been sold. So, if you write and don’t get an answer fairly promptly, move on.

2. Make a phone call whenever you can. Many sellers don’t take emails seriously. Or they’re tired of long explanations to scores of strangers who aren’t really interested. After the first few emails, get on the phone and talk to the owner or the broker.

3. Ask questions. But don’t ask just about what you’re interested in. Ask macro questions about the area, the market, other cities, demographics, employment.

4. Don’t ask so many questions that you don’t have time to listen to what the broker is telling you. Good brokers have a wide knowledge of the market and even a casual phrase can save you hours of research on your own.  Tap into professional knowledge whenever you can.

5. Don’t reveal too much of your own plans. It’s premature and can sabotage your ability to negotiate (this is often hard for me, being a rather open person). On the other hand, being too cagey provokes caginess in others too.

6. Don’t assume anything. Sometimes working directly with the owner does save you money. Sometimes, it can end up being costlier. Brokered properties are not necessarily more expensive. Brokers often have a better idea of a good sale price than owners. Many an owner has put his house on the market at an inflated price only to have it sit there for months. Then he has to reduce the price, and by then, the market has moved on.

7. Don’t be pressured into buying. If the broker has other offers coming in, don’t rush to beat them. Offer what you think you’re willing to pay, and if someone else offers more, then that’s the way the game went. There’ll be another chance some where else.

8. When you have done your research long enough, make your move. Endlessly nitpicking something is a dead-end. There’s likely to be some draw-back to buying any piece of property. You get the architecture you want, but along with it comes plumbing problems; the location with good rental returns might not have as good capital appreciation as the location with the good rentals; the glorious facade might open into a boxy lay-out; you love the terrace, but the bathrooms are pokey. That’s life.

9. Read up on real estate procedure and verify with locals exactly what needs to be done at each step. It would be a shame to lose a property because you didn’t get a piece of paper right.

10. Be very clear about your goals. Are you buying it for rent or for profit or because you always wanted to own a piece of beautiful architecture?

11. Be very clear about your feelings. Some people might be willing to lose money fixing an old building. Would you? On the other hand, would you enjoy owning something cheaper and plainer in a frumpy area? Only you know your tolerance level for different things.

7 thoughts on “Tips for Buying Property In a Foreign Country

  1. May I offer this for consideration?

    Before making a huge commitment buying a house, rent an apartment or house in a particular district/neighborhood for six months or so to make sure you REALLY want to live there.

    Most places always look good from pictures, or staying there a few weeks in a four or five star hotel. But living there is a whole new adventure.

    Or even better, buy only where you have friends or family.

    Sherwood Smith
    Shanghai, Guangzhou, Kunming, Jiading, Longgang, Burlington, Lubbock, Amarillo, Santa Cruz, Houston, LA, Rocky Mount, Chicago, Clear Water, and more.

  2. Thanks!
    Yes. It’s absolutely necessary to live there more than a month.
    If you don’t, you get an idealized picture of things.
    May I ask where you ended up after that interesting list?

  3. to mb4:

    I am fickle and have no desire to settle in one spot at this time as the world is quite interesting and I would like to see more.

    Of course, I will keep one eye on Lila to see if she finds a good spot, in the mean time I will return to Asia and watch all this craziness from the outside.

    Kind Regards,
    Sherwood Smith

  4. You folks really are having existential problems.

    Although I have certain country in my mind, I would say any country where there is NO: McDonalds, WallMart, CNN, hedge-funds, Madoff and predatory lending and where: Hollywood, ownership of weapons, fear-mongering policy is not dominant cultural/government phenomenon is good one.

    Any country which takes care for it’s old/retired folks, who do not have to stand beside cash registers and country with sense of social fairness and justice I could call my country.

  5. My previous was missing information, I put “ownership” in quotes for a reason. I know of at least 3 cases in which ownership was really a 25 year lease, for expats could not own property.

  6. Hi – thanks for the information, Greg.

    Yes. I’ll post separately on ownership laws, squatting and so on.

    Anon – yes, you’re quite right. But how long will CNN, Hollywood, Predatory lending etc stay out of a country?
    The tentacles of empire are very long and very strong..

    That said, even though Montevideo is far from cheap (especially for locals) – I find the change of culture refreshing. People seem innocent. Happy with their family and friends, with more ability to share. More concerned about other people and less about their own self-aggrandisement.

    The government’s total monopoly or excessive taxation of some things here isn’t one of the good things though..
    it stifles competition..

Leave a Reply

Your email address will not be published. Required fields are marked *