Buying a home is an incredible milestone no matter where you are, but buying a home away from home can be a dream come true. Of course the dream can come with challenges, from navigating foreign regulations to finding the right advisors outside of Canada.
For many buyers that I’ve spoken to, purchasing a holiday home or a pied-a’-terre in a foreign country can seem unattainable, but I’d like to think I’m changing that. As someone who is based in Vancouver, who owns an international real estate portfolio and travels often, it’s really important to me to help my clients make their international lifestyle dreams come true by owning properties around the world. Trusting the wrong people with your purchases can cost you time, money and energy. But you can avoid this by making sure you are working with the best professionals in our industry, no matter where in the world you want to buy.
What you need to know before you start looking for homes abroad.
Here are a few key considerations to keep in mind if your goal is to diversify your portfolio internationally:
- Surround yourself with the best industry professionals
Connect with someone you trust who understands what it’s like to purchase a home internationally and discuss the reason for your purchase. Your goals will influence which city you buy in and the type of property you secure, based on whether it’s going to be used for personal use, rental income, retirement or as an investment for future appreciation. Your trusted point of contact will be able to introduce you to the best advisors, lawyers, accountants and property management companies in the city so you are surrounded by the best of the best in order to be able to make an educated decision and be fully taken care of. - Be aware of market volatility
Make sure you have an exit strategy even if you plan on keeping the home forever. Planning for how you will eventually sell or understanding if you can transfer ownership is important. Ask about the potential resale value of the property and how easy it will be to sell again in the future. Consider the liquidity of the local real estate market and any legal or tax implications of selling property abroad. Whether it’s for personal use, rental income or resale use, have a good understanding of the market conditions for potential future transactions. - Know your future exit strategy
Make sure you have an exit strategy even if you plan on keeping the home forever. Planning for how you will eventually sell or understanding if you can transfer ownership is important. Ask about the potential resale value of the property and how easy it will be to sell again in the future. Consider the liquidity of the local real estate market and any legal or tax implications of selling property abroad. Whether it’s for personal use, rental income or resale use, have a good understanding of the market conditions for potential future transactions.
Trusting the wrong people with your purchases can cost you time, money and energy.
Other important factors to keep in mind when buying abroad.
- Service charges and maintenance costs
Factor in ongoing service charges, maintenance costs and additional fees associated with owning property in a foreign country. These costs can vary widely depending on the property type and amenities provided. - Purchase costs
Don’t forget to calculate all costs associated with the purchase, including notary fees, registration fees and taxes (such as property transfer tax or value-added tax). The biggest mistake I see clients making is not calculating currency exchange rates properly. Currency fluctuations happen overnight so plan ahead strategically. - Rules and regulations
Each country will have different rules regarding foreign ownership, inheritance laws, zoning and property taxes. They will also have their own local laws and regulations, such as residency rules, visa requirements and tax implications.
While buying a property abroad can seem complicated and daunting, working with a trusted advisor here in Canada can make the process a lot easier and safer.
When I work with clients, I connect them to the best professionals working in the markets they’re interested in, from lawyers to accountants to property managers. I have spent years nurturing these relationships so I can ensure you will be properly taken care of.
Are you ready to start exploring what it’s like to own property abroad?
Not sure where to invest or what properties are available? Take a look at my video series showcasing some incredible international real estate opportunities:
