Buying Overseas: Think of the Issues
Thursday, November 13th, 2008Many people move abroad financially established home-owners. Normally you are used to owning your own home so if you migrate abroad the instinct is to quickly buy your own piece of your new country. This may not be the smartest move, however. moving abroad can be a big step forward financially but think about your property purchases carefully.
Reasons Not to Buy Immediately
You don’t know that you will stay. Not every immigrant stays in their new country. Not every migrants “stick”: some quickly return home for many reasons. Its more flexible to rent until you are sure about your overseas move. If you sell in your home country and buy in your new country and then have to sell again – you will probably lose significant amounts in fees and commissions even if the property prices have remained stable or increased.
You don’t know the property market. Your unspoken assumptions put you in a weak negotiating position. For example an Australian wouldn’t buy a family home in many parts of a Australia that did not provide a shaded outdoor entertainment area. An immigrant from a cooler climate may not see the problem with a north-facing exposed courtyard until they have moved in.
You may change city, suburb or state. Its so much easier to move if you haven’t purchased a house. You may rent initially in your desired area only to change your mind 6 months down that track buy in a different area.
