Buying property abroad is an exciting and rewarding investment. Whether you are planning to buy a cozy villa on the beach in Bali or a luxury apartment in Dubai, there are several important aspects to consider.
In this article, we will look at the key points to pay attention to when buying property abroad.
1. Legal aspects
Each country has its own laws and regulations regarding the purchase of property by foreigners.
In Dubai, for example, foreigners are only allowed to purchase property in specially designated areas. In Bali, on the other hand, foreigners cannot own land directly.
It is important to familiarize yourself with the legal aspects in advance and, if necessary, contact local lawyers to avoid unpleasant surprises.
2. Financial and tax issues
When buying property abroad, it is necessary to take into account not only the cost of the property itself, but also additional costs: taxes, registration fees, insurance, as well as maintenance costs and utilities.
In Dubai, for example, when buying a property, a registration fee of 4% of the property value is charged. In Bali, there may be additional costs for land registration and construction if you plan to build a house.
You should also consider currency risks and exchange rate fluctuations, which can affect the final cost of the purchase.
3. Purpose and use of the property
Before making a purchase, decide on the purposes: will it be your permanent residence, a place to relax, or an investment property. The choice of location and type of property depends on this.
In Dubai, property in the city center and popular areas such as Dubai Marina attracts investors due to the high demand for rentals. In Bali, on the contrary, you can find quiet secluded places ideal for relaxation.