Investing in overseas real estate: highlights

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Buying real estate abroad

Buying real estate abroad can be tempting. However, you need to be cautious and understand the local situation well before making investment decisions.

Buying property abroad to rent out, to create a second home or for retirement can be tempting. The tax system is sometimes more attractive than in France and real estate prices are much lower. Nevertheless, you should be cautious and understand the local situation well before making investment decisions.

Study the local real estate market thoroughly

Before you start buying real estate abroad, you need to''Research the local real estate market thoroughly. If it is an investment property, this will identify geographical areas with development potential, assess average prices and ensure that the desired property is not overvalued. Also pay attention to geopolitical risks, they should not be underestimated...

Although it is possible to learn about a location or inspect a property from a distance using online tools, it is still advisable to visit the site in person to assess the property's condition, location and neighborhood.

Inform yourself about legislation and regulations

Local laws and regulations should not be taken lightly, and it is important to familiarize yourself with local real estate regulations as they can have serious''implications. Some countries may have restrictions on foreign ownership or special taxes.

Be careful about taxation

Beware of taxation, especially when it comes to investing in rental properties that generate income: you may be taxed twice on''rental income if the country in which you are investing has not entered into a tax convention with France. Also keep in mind that if you want to pass on the property to your loved ones, the rules on inheriting real estate apply in the country where the property is located, not in France.

Set a budget

As always, to set a realistic budget, you need to anticipate costs: property values, legal fees, taxes, delegating rental management to a professional if necessary. In the case of real estate investments abroad, you sometimes need to consider the exchange rate as it can affect the return on investment. If you need financing, you can apply for a mortgage loan from a French bank.''However, as the risks are higher than in France, the conditions for obtaining a loan are usually stricter (interest rate, down payment, guarantees and mortgages...). If you choose a local bank, as always, research the conditions carefully.