Long term renting
This is not owning a home overseas. But it is a way to get into the property market in a foreign country before committing yourself to a long-term purchase. Renting, at least in the short term, is advisable before making a long-term commitment.
Remember to apply the same judgements when buying abroad as you would at home. How will property values hold up, what is the neighbourhood like, how good is the transport, health and education facilities, what are the local people like and will I/we fit in, will I/we feel at home here and numerous other questions. That is why renting is highly advisable.
CONDOMINIUMS
This is a strange concept to most British people who are used to buying flats on a leasehold basis. In America and on the Continent most apartments – and sometimes even houses – are sold on this basis. Unlike the leasehold system the purchaser does not buy the property for a set term but owns their property outright. There are rules covering the management of the block of flats and communal areas, the election of residents to this management committee and also rules governing what you can and cannot do with your property. You will have to pay a service fee to cover your share of the costs.
The advantage of this system is that you do not have to hand the property back when the lease term ends and you do not run the risk of having to cope with a bad landlord who fails to maintain the building. But running a building on a condo basis can also have problems, particularly if the residents cannot agree.
TIME-SHARE
Again this is a concept that you are unlikely to consider when buying in your home country. And you may not want to consider it abroad either. The time-share concept has suffered from much adverse publicity, but this does not mean that it is always a bad idea. Buying a time-share can work in your favour if you cannot afford to buy a property outright and do not want the bother of paying someone to look after your holiday home when it is unoccupied.
Time-share is a right to occupy and use a property, usually a furnished apartment, villa or hotel suite by purchasing selected specific weeks or weeks in a specialise seasonal time band annually, for a contracted number of years. You buy the time-share outright at the start. In addition you pay an annual charge to cover maintenance and management. This charge can and will rise so be prepared for increasing costs.
You will usually have the right to exchange, let or sell your time-share. This means that you can experience other countries and resorts.
Time-share is a big business. There are now 2.5 million time-share owners in over 3000 resorts around the world. Do not allow yourself to be pressured into buying a time-share as not all countries allow you a cooling off period in which to cancel. Always get a full description of your time-share showing your legal ownership right and details and where possible contact the owners’ committee.
FREEHOLD
If you are not buying an apartment or house on a purpose-built complex then you are likely to be buying your property on a freehold basis. Just as in the UK you should get your solicitor to check that the property is free from mortgages and other debts or that these are settled upon purchase, that there are no rights of way affecting the property and that all planning requirements have been met.