Are you among the increasing number of people thinking about buying a second Gambia houses with a view of the sea, a dream home away from home or a profitable investment property in another country?
In addition, consider the reality that there is an increase of 250% between 2000 and 2004 in the amount of Britons buying properties abroad to invest in, which is more than one quarter million.
Brits have homes with two homes on Spain as well as France already, and is what the Office for National Statistics in the UK recently announced that more than 200,000 Britons take a trip each year to foreign countries with the goal of staying for at least a year and it is evident the desire to purchase that dream house abroad is widespread.
What’s Driving This Increasing Interest In The International Property Market?
However, despite reports that suggest otherwise, there’s no doubt that the UK housing market appears to be increasing and Britons who are accumulating massive amounts of equity from their homes properties are contemplating selling or buying property abroad. Setting up an investment fund by utilising the funds they’ve accumulated from their Gambia apartments.
Some people in Britain cannot afford to climb the first step of the ladder of property and some are even looking elsewhere to find cheaper housing.
And then there’s the current state and confusion around the pensions market that is growing more difficult. Which means that an increasing number of Britons are thinking about the possibility of purchasing a second home in another country to rent out for retirement.
Some people just have a widely shared dream of having an idyllic holiday house in the sun or getting away from the rat race for a fresh start abroad.
Whatever the reason to consider buying property overseas there is one thing that is certain, before you decide to purchase you should be aware of the extensive tax, legal and financial effects of buying property in another country.
This Article Focuses On Ten Key Aspects That Merit Your Attention
- The British nation’s obsession with equity, property prices and remortgaging is something that is just as foreign in several other countries as mushy peas and vinegar on your chips. So don’t believe that your second home will appreciate in value, and do not assume that it’s simple to sell.
Check Out Whether The Market Or Property You’re Considering Can Meet And Keep Your Desires and Goals For It
In places like Northern Cyprus and Bulgaria the real property market has been stifled for such a long time that prices remain competitive, and many are able to see potential for significant expansion of the market.
In other nations like Spain, France and Portugal where property prices have been rising for many years. Are you expecting similar levels of growth to be maintained? Keep in mind that every country’s housing market is unique.
If you choose to examine the market in other countries compared with that of the UK housing market, some might not be as vibrant. However, you can look at longer-term trends. Talk to established estate agents in your chosen country to discover if the market is steady or stagnant.
- Consider the regular costs of travel to visit your second home when you create your budget. Remember any extra trips you may need to arrange for repairs or renovations, for instance.
This may sound obvious but unfortunately, many people get shocked to discover that they are unable to travel to the new location as often as they would like. Or even worse, once they have moved abroad, they discover they don’t have a home to visit family members and friends, etc. Be careful with your budget and don’t get in the middle!
- If you are planning to let your second residence, you have to declare the revenue to the tax man in your home country. I’m worried!
In addition, it might be required to declare it in the country where the cheap houses for sale in Gambia are being built dependent on the double taxation agreement in force between the two countries. It is important to get professional tax advice before making any purchases.
- If you’re planning to rent out your home, ensure you are aware of how much it will cost to hire an agent to take care of the day-to-today operations of your property as well as organising the rental aspect of things.
It is essential to have a reliable agent to ensure your interests are safeguarded, particularly if you’re not planning to stay in the country that the property is situated in.
Include these costs in your budget or subtract them from your anticipated rent to give you an estimation of the revenue potential of your home.
You’ll have to pay a management agent in any of the weeks or months that the property is not occupied.
- Think about the tax implications local to purchasing, owning and selling your home as taxes on land and property in certain countries could create UK taxes on stamps and council taxes fade to nil.
For Northern Cyprus for example tax rates aren’t currently high but they could change, so always seek current information on tax and fee rates along with figures and information from the estate agents in addition, verify the information with your local accountant or lawyer.
- Create a will that will protect the local laws on inheritance taxes, and ensure that your property in another country is listed in a will that is register in the country where you reside.
Legal advice from a specialist should be out when you own properties that is locate in multiple nation since inheritance laws don’t just vary greatly base on the country, but local inheritance laws could completely in conflict with and invalidate your original will.
- Consider the legal expenses that you’ll be paying in the process of buying, renting or selling your home into your budget overall.
There are many additional charges including notary charges as well as valuation fees and translation fees, and so on. If you take them into account, there shouldn’t be any unpleasant surprise charges.
- Make sure you are aware of legality of any contract that you enter into. Choose a trusted lawyer, and have important contracts translated, and be aware that ignorance is not a reason!
The language that your important contract documents are can be an issue. So don’t overlook the issue! Don’t sign blindly on the dotted line. It’s your obligation to stay up-to-date.
- The option of buying through an offshore corporation to avoid tax costs, laws and expenses is often an option to anyone who is looking to purchase a product overseas.
If this is the best option is debatable! It all depends on the country where you are buying. In addition, local representatives could have a wrong impression of foreign buyers using their knowledge of the local context.
This strategy can be beneficial for Gambia real estate prices. But it could cause you to be in a amount of tax issues whether at home or abroad!
There are specialist companies that can offer advice depending on your specific situation. As there isn’t one approach that is universally applicable.
- What is the best option you would prefer to pursue when financing your new purchase? Are you thinking about the possibility of releasing equity and a second loan?
Be aware of the advantages and disadvantages of each alternative. Cash might seem like the easiest and most efficient option to go. But do you really want all that cash tangled up in a comparatively slow process to liquidate an assets in another country?
What is the best way to finance a mortgage using the local currency? You must consider how stable the local currency is as well as the fluctuating exchanges rates.
Summary
In terms of the choices you must think about when thinking of buying a property Gambia overseas. These ten best guidelines are not comprehensive but will give you some inspiration.
As you move forward, you must be aware; do not make any assumptions in a foreign country that you wouldn’t consider back home. You should seek expert legal, financial and tax advice at each stage.
