Buying property abroad can be riskier, not least because you’re entering a real estate market – and legal jurisdiction – you may not understand as well. But at the same time, there sometimes is a tendency to exaggerate or misunderstand the exact nature of those risks. So for those of you who are seriously considering a second property abroad, take note of the following:
Common misconceptions of buying overseas property:
Most of these misconceptions stem from oversimplification. While there may be a kernel of truth, generalising them is often a mistake, or misdirects you from where the real risk lies: Issues of instability or corruption Reliability of foreign developers Complicated buying process and taxesFinancing difficulties Unpredictable yields and gainsExchange rate complicationsOnly “golden postcodes” make any money
1. Issues of instability or corruption
Not every property investment overseas is going to be plagued by corruption, require...