Second Home
Buying a Second Home in a Foreign Country
By Buyincomeproperty.com
Oct 20, 2005, 17:48

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!