As complicated as buying a home is, going international with it is adding a lot more to the mix. There are certain things you'll have to take into consideration that you would not have to deal with domestically, but getting the home of your dreams is worth almost any kind of trouble.
Exchange rates
One of the things that can affect your purchase of a home most severely is the monetary exchange rate between where you are going and where you are. For instance, the recent economic hiccups in the U.S. have damaged the value of the dollar internationally. In essence, buying a home or property where the Euro is the dominant currency will probably result in you paying more than the property would be worth at home. Of course, it's hard to compare apples to apples in all of this (a Mediterranean villa vs. a townhouse in Cambridge?), except to say that you might be paying a lot more than you would expect.
But, of course, there's always the possibility that your dollar will be worth more in the new country. It's relatively simple to compare exchange rates between countries online (at http://www.x-rates.com/calculator.html, for example). If you're thinking about buying internationally (or browsing internationally), take this quick step first.
Political climate and housing markets
Whether you plan to move to a new country or just to buy some real estate as an investment, the political climate of the new location is incredibly important to take into consideration. An area that is experiencing turmoil now or may in the near future could put you into an uncomfortable living situation or affect the resale value of the property down the line. Keep up with the news concerning the areas in which you are looking to purchase real estate. Does it seem like a stable investment?
Political turmoil is not the only factor that can influence the value of your property. Look into the state of the housing market in the new country, specifically in the area you are considering. If you don't plan on owning the home for the rest of your life, you'll want to think about whether you may be losing money in a few years when trying to sell it (or, worst case scenario, whether you'll be able to sell it at all). An experienced international real estate agent will be able to help you with these issues, as well. That being said, it's still worth your time to read the newspaper or talk to people who currently live there or have in the recent past.
TIP: Set up a Google Alert for the countries you are thinking about buying real estate in. Google Alert will email you when new information comes up in the news, among other things.
Culture shock
There is something romantic about moving to another country. You may end up cultivating a way of life that is very different from what you are used to, which may be exactly what you want. Preparation, however, is always important, especially in a decision of this magnitude. Some things to seriously consider:
- Cultural differences: Can you and your family easily adapt to the differences in behavior and thinking in this new country? Try and get some first-hand advice from natives or (even better) transplants.
- Cost of living: How difficult will it be to find employment that can support you and your family comfortably? Are food, taxes, and other necessary expenses going to be adequately covered by your income?
- Healthcare: Especially if you or someone making this transition with you has a medical condition, you'll need to research the healthcare available in the new country.
- Language: Will you have to learn a new one? Will members of your family have to learn it, too?
Purchasing international real estate takes even more work than doing it in your home country. It's hard to imagine it being a solo venture; enlisting the help of experts is going to help you make the most informed decisions. Once you do finally make the call, though, you'll have something very special on your hands.