Choosing your expat accommodation: renting or buying?
November 3, 2017
The decision of purchasing a property abroad, it should be carefully taken as it can have long-term implications.
Are you going to move abroad and you would like to purchase a house in your new country? Are you familiar with the local housing market? Do you know the taxation system in your destination? Which taxes should you pay for your new home as an owner? All these are questions you should ask yourself before deciding to buy a house in your expat country.
1) Buying or renting
First things, first. Do you really need to purchase a home? Will it be worth the investment? If you are planning to relocate abroad for a relatively short period of time, it’s definitely better to focus on renting.
However, renting is also advisable for people planning to stay in the long run. Discovering the city, getting to know the neighborhoods, checking the amenities available… All these are important at the moment of deciding where to live and will allow you to make a better and more informed decision if you decide to purchase a house later on.
2) Budget and taxes
It’s always good to be reminded that buying a home involves much more costs than just “purchasing a property”. Have you thought about leaving some money aside for the initial deposit? Are you familiar with the legal fees that you might have to pay for setting up the purchase? Do you know how much are you willing to spend monthly on repaying your mortgage?
3) Currency fluctuations
In which currency are you planning to pay your new home? Will it be the same one as in your new destination country? Be aware that exchange rates can alter dramatically from the time you agree to buy to the time you actually pay for your property.
4) Expert advice
Translations, local regulations… buying a home in your new country is not an easy task and counting with the help of a local advisor can save you a lot of worries. Search for someone with experience working with foreigners and familiar with how local regulations apply to newcomers.
Do you have more questions? Contact your local Crown representative