Currency ServicesCurrency Online Newsletter April 2008

THE SMART INVESTOR

Intelligently Purchasing International Properties

Doing your homework before you purchase

Before making such an important purchase, there are a number of factors you should consider

Keep clear, organized motives
Before you start looking for a property, ask yourself the following questions: The type of property you are wishing to purchase? How much capital do you have available to invest? Do you want it to be managed in your absence and rented out?

Do the math
Don’t get carried away buying a property you cannot afford. Remember to add on approximately 10-15% to the asking price to cover taxes, fees and other costs. If you are looking to rent out your property, calculate what rent might be achievable over the year, both in peak and off-season, to help cover your mortgage payments, net of management fees and other costs.

Chose a reliable agent/developer
Make sure that you contact a reputable real estate agent, one who will be able to provide all the necessary information on the property that you are looking to purchase. There are professional groups of agents that focus on serving the international buyer.

Always use an independent lawyer
Engage a reputable and knowledgeable lawyer that speaks your language to provide legal advice concerning all aspects of your purchase including real property laws and taxation laws of the country where you are purchasing.

Save money on currency exchange
Be aware that with a purchase as large as a property, you could save thousands simply by using a professional currency exchange specialist to make your money transfer. Remember banks generally don’t offer consumers as competitive rates as they do corporations. You can access these better rates through foreign exchange specialists such as Currency Online. The savings can be in the thousands of dollars. You can also lock-in rates to avoid currency fluctuations.

“There are many legal issues and financial implications (tax, estate planning, and insurance) that are involved in the purchase of any substantial asset in a foreign country. Be sure to consult all of your advisors for complete counsel.”
HodgsonRuss LLP is one of the global partners that Currency Online works with in delivering a “Value Added Client Experience” to overseas property buyers.

To find out more about the currency services Currency Online provides please visit Currency Online Limited.