How great would it be to have a second home on the coast of Spain? Or perhaps
your dream of a second home has it set in the beautiful countryside of Tuscany.
Buying a second home in a foreign country is a worthy goal, but take a minute to
consider advice from those who have already done it or work with clients to get
it done.
If you’re buying a second home in a foreign country, you have to consider the
legalities of that country. Unless you’re extremely familiar with the laws
governing property sales in that country, hire a lawyer. Most of the horror
stories of people who have been scammed while buying a second home in some other
country happened because they skipped this step. Some things are optional when
you’re setting out to buy property outside the United States (or whatever
country you live in). This one is not.
A real estate agent isn’t a lawyer. Some people think that because they’ve
worked with a real estate agent throughout the process of purchasing their
second home, they don’t need a lawyer. That agent may very well be knowledgeable
and may have your best interests at heart. He or she still isn’t a lawyer who
will be sure that your interests are fully protected.
Mortgages on a second home are sometimes a bit tricky, especially when that
home is outside the country in which you currently live and do business. Look
for lenders who are accustomed to working through this situation. International
lenders will also be able to guide you through the purchase process, helping you
with money conversion and other issues.
Buying a second home at retirement time is often an anticipated event. You’ve
probably vacationed in some particular country and couldn’t wait to get back
there to spend the long, relaxing days of your retirement years. Carefully
consider the situation before you turn that second home into your only home.
Vacationing in Spain, Italy or Egypt may have been wonderful. But are you truly
ready to give up your home in the US (or wherever)? Will you miss your family so
much that need to return for extended stays? What happens if one of you faces a
debilitating illness, will you want to return to the US? What if one of your
family members – a child or grandchild – becomes ill and you simply have to
return? Renting your first home could be an option. You’d retain ownership and
could return home if you decided to at some point. Or you might consider renting
your second home instead of making the commitment to purchase, at least while
you try out full-time residence in that country.
If you’ve really liked traveling and that’s what took you to Spain, Italy or
any other country in the first place, consider whether you truly want a second
home there, or if it’s just an extended vacation you’re craving.
There are other considerations. How will you deal with the plumber when he
comes to repair a leak, or the young person who is going to do the upkeep on
your lawn? Learning the language – at least a smattering of it – may be
necessary. Medications and health care services should be arranged ahead of
time.
At the end of the process, having that second home may very well be your
dream come true. And if you’ve taken the time to plan carefully, that dream and
the reality may be closer than you think!
