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Ever dreamt of owning a home in the sun? Well, believe it or not it's a dream that's come true for an estimated one million Britons and even more from the EEC.
That is how many people have bought flats or villas in Spain, France, Gibraltar, Italy, Portugal or
Cyprus.
And the same could be true for you. For as little as £15,000 -
the price of some double glazing and a porch for the winter overcoats - some sun-drenched corner of a foreign field can be forever England
(or Wales, Scotland or Ireland!)
No longer is owning a property abroad for the rich and famous alone. Since 1993 when business barriers came down across Europe, escalating foreign travel has opened our eyes to the closeness of the Mediterranean and the
possibilities of having a home there or beyond.
"But look before you leap is the message for anyone contemplating buying a place in the sun," says Simon Conn of
Conti Financial Services
Ltd,
a specialist Mortgage Broker in the UK, who has been involved in this industry for over 20 years).
"An alarming number of people go light-headed on their holidays and commit their life savings impetuously to a dream villa, apartment or timeshare only to find that they've made a dreadful mistake when they cool down. Putting down roots abroad needs all the thought buying a first home in UK can take ... and a bit more."
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Your first priority should be to think long and hard about the costs involved. There are several methods of raising the cash for your foreign home:-
If you are British, re-mortgage or take out a second mortgage on your UK home
Use
your prospective foreign property as security if purchasing in Andorra,
Australia, Bulgaria, Canada, Cyprus, Czech Republic, France, Gibraltar,
Greece, Ireland, Israel, Italy, Malta, Monaco, New Zealand, Poland,
Portugal, South Africa, Spain, Switzerland or even the Caribbean & USA.
If you are selling up to move abroad permanently and are currently British based, a short-term loan secured on your UK home could speed up the purchase
Think about combining your cash with friends or family, it could bring a villa with a pool within reach rather than just an apartment.
However, remember that the bills don't end at the asking price. Lawyer's charges, taxes, travel expenses and insurance must all be met as n your host country, but are often more expensive abroad.
Among the more exotic costs of buying abroad are money transfer deductions, service charges for expensive shared amenities such as tennis courts and golf courses and fees for translating documents into your own language - a must if you are no linguist and you want to check the small print in a contract.
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Ask your agent how long they have been established and what other
properties the developer they represent has built. Obtain the names and addresses of other customers the agent has advised so that you can check up on their claims and service.
Make sure you see the older properties on a development, not just the gleaming show of new homes of the latest building phase. It is a good way to see how competent the builders are and you can often spot real bargains among older properties especially in the current market.
A good ploy is to get as many different quotes as you can for your dream home. Variations in price for similar properties in the same development may emerge as you do the round of agents at a resort.
Keep an eye out too for those properties that come with special discounts, with extra amenities or other perks such as a year's free membership of a nearby golf course. The rule is not to be bulldozed into signing anything or parting with cash before you've had a chance to think or check into the legitimacy of the seller.
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Choose a firm of lawyers with representatives both in your own host country and abroad. It will prove much cheaper buying your home if you can avoid endless international telephone calls and air travel to sign documents.
A local lawyer can check that your holiday retirement home is on land legally acquired, is free of owed taxes or outstanding service charges, and is connected to the water and power supply lines. Cases do exist of people innocently buying properties built in restricted military or conservation areas, or having to pay for all too temperamental generators or overhead power lines as a surprise extra just to have light and hot water.
A lawyer will also study your contract and advise you of any pitfalls it may contain.
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Open a bank account in the country you've chosen and ensure you get a certificate of importation for the money bring in from your own country. This will make repatriating your cash much easier if you decide to sell up at a later date.
Set up standing orders on a local bank account to meet bills and taxes. Fail to pay your taxes in some European countries such as Portugal and Spain and the courts could seize your property. Include your home in a will that has been translated and officially recognised according to the law of whichever country you have decided to buy in. Failure to do this can lead to really expensive legal wrangles for your executors.
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"Buying a holiday home abroad is probably the fulfilment of many people's greatest ambition," adds
Simon Conn of
Conti.
There are many reputable agents and developers around but a bit of Summer madness can jeopardise a lifetime of saving. Planning and lots of caution are necessary if you've to avoid getting stung in the sun."
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For further information and to visit the
Conti website
Please
note that if you request information from Conti Financial Services Ltd
(overseas mortgage specialists) they will be dealing with your enquiry
direct and will be in touch with you shortly.
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