Savills Portugal

It goes without saying that buying a property off-plan overseas, especially during recent months, requires careful planning and preparation, but it will be well worth the time and energy you invest once the process of purchasing begins.

The first step you can take, before navigating travel restrictions to explore your chosen location or even choosing a property, is to give careful consideration to what you want from your purchase.

Set your objectives

Are you buying to enjoy the lifestyle of your chosen country or for investment purposes (or a bit of both)? Will it be a home that you relocate to immediately or a retirement property for later down the line? Do you want to be responsible for the upkeep or are you happy to pay a management company to take care of everything? Will you be looking to let the property out or share it only with friends and family? Are you interested in a renovation project or are you looking for a turnkey solution?

The answers to these initial questions may mean that purchasing a new-build property overseas is a more attractive option than an existing property. Not having to inherit repairs or update the interiors can be appealing. In some instances a new-build property also offers the chance to buy a furniture pack which can often be tailored to your tastes in advance and available at a discounted price compared to buying pieces separately.

Depending on when you purchase your property in the cycle of the construction process you may also be able to modify the final layout and finishes, saving you from having to bring in independent contractors and manage the process yourself from afar.

Speak to a financial advisor

Buying a property off-plan may also be appealing as the payment plan will usually span the length of time it takes to complete the construction, allowing you to spread the cost. It is advisable, however, to speak to a financial advisor in advance to explore the options available to you for converting your capital into the currency of your chosen country and potentially avoid fluctuating currency exchange rates.

Fully researching the purchasing process of the country in which you are buying will also help you budget any additional costs such as VAT which may be added to the cost of a new-build property and may be higher than what is added to a re-sale property.

Engage independent legal advice

For some, buying abroad is a decision which comes after many years of visiting or previously living in another country while for others it may be less about how well they know the location and more about its investment potential.

Regardless of how familiar you are with the country, you may want to consider engaging a lawyer or solicitor who is not only an expert in the local laws but who is also fluent in your language and that of the country you are buying in as translated versions of the legal documents and contracts may not be readily available.

This will help you make an informed decision and manage your expectations during the purchasing process. For example, understanding the ‘short stop’ and ‘long stop’ dates specified in the contract will tell you how flexible you may need to be with your move in date, especially important if you are planning to relocate to that country.

Research and explore the local area

Lastly, when you are able to tour the development of your choice, virtually or in person, it is worth factoring in the time first to do your own research. Exploring the surrounding area in person or researching online and thinking ahead to how you will be using your new home will help you decide if it is the right decision for you and shape the questions you will want to ask the on-site sales team during your visit or virtual consultation.

If having freedom to shop locally without needing a car or having great restaurants nearby is important to you, these may already be at the top of your list of things to ask, but it is also worth taking the time to consider less immediately obvious considerations such as the proximity of good health care, emergency services or even schooling, especially if you are planning to spend an increasing amount of time there in the future.

If you are looking to buy a new home overseas, featured below is a selection of off-plan properties in Europe.