Jul
16
If you are looking at purchasing a home south of the boarder, there are 6 things that you should really look at and seriously consider before purchasing. There is a link to a document from REIN at the end of this article that outlines everything that you need to know about purchasing down south!
Rule One
Go There Twice, not just once… Don’t sign the dotted line until you fly!
You will want to view the home and area in different seasons. Don’t just take a local’s word for it, do your due diligence.
Rule Two
Always check out the Competition on Both Fronts
It is important to look at the competition not only locally, but also in other countries. Get to know the area and what is being offered. Don’t just buy the first property that you come accross because it looks like a great deal!
The other competition is to look at the competition that your potential renters will be looking at. If you are not planning on living there full time, you will most likely want to have some revenue on the property.
Rule Three
Know the Local Property Laws
This is very critical… if you don’t know the local laws, you are truly playing with fire… You will want to find out what restrictions there are to foreign owners.. as there may be many!
Rule Four
Have Your Own Legal Rep in the Country
This individual must have nothing to do with the development or property that you are purchasing, and should review absolutely everything before you sign it… Do it right the first time, or it could cost you!
Rule Five
Dig into the Tax Implications - How will Profits be Treated?
How will the taxes be handled with owning outside of Canada? Is there a tax treaty between the coutnries?
Rule Six
Know Exactly What You Are Buying
Do you know what you are truly buying? Is it a true real estate investment, or is it an investment into a company? Can you hold the title in a company name or personal name as a Canadian citizen?
Make sure you do all the due diligence that you can, as you don’t want to have to potentially pay for the property twice, cause you didn’t do your homework…
You can download the 6 Rules To Tropical Real Estate here which originated from REIN.
REIN - Real Estate Investment Network www.albertarein.com
Comments
One Response to “Wanting to Buy a Tropical Home?”
Leave a Reply
The Chamberlain Group
Buying a home can be complicated and frightening. You acquire a large debt and assume many new responsibilities. And in the back of your mind is that nagging question, “Did I get ripped off?”I designed a list of few tips to help one make the best homebuying decision possible.
1. Look at the purchase as an investment.
2. Avoid short term loss. Most places have slow, steady home appreciation. You can make the most of your investment by buying in a neighborhood where home values are expected to appreciate.
3. Use a buyer’s agent. A buyer’s agent represents the buyer and is paid by the buyer to represent their interests. If you’re not a skilled negotiator, a buyer’s agent is probably the smart choice.
4. Choose agent wisely. Look for an agent experienced in working with buyers, with knowledge of the neighborhood you are considering and without a reputation for being “pushy.
5. Carefully inspect the home. Learn as much as possible about evaluating the condition of a home.
6. Watch interest rates. The lower the interest rates, the bigger mortgage a buyer can afford. An asking price may sound too high, but at a lower interest rate, you might be able to qualify for a loan and afford the payments.
7. Study, study, study. These tips are only the beginning. You’ll need to know a lot more if you want to make wise decisions. Read articles on homebuying, financing, negotiating, home inspection, and real estate contracts.For more view- realtydigest.blogspot.com