Overseas property with FAKTOR

Turkey and Northern Cyprus are closer and cheaper, and are usually considered for relocation or seasonal letting. The UAE is a different level of sums and a different logic: people buy there for managed rental income and for residency. Indonesia and Thailand are mostly about resort letting.

What to understand before buying

Ownership abroad does not work the way it does at home. In some places you get full freehold, in others a long lease of the land for several decades, and those are different things even though a listing will call both ownership.

The second thing is taxes and upkeep. The annual tax, the utilities, the management company fees and the tax on rental income together make a figure worth calculating before the deal rather than after. The third is how you will manage the property from here: yourself, through a company, or not at all.

What it costs and what to budget for

The price of the property is not the whole sum. On top come the purchase tax, the notary or lawyer, translation and legalisation of documents, and in some countries compulsory insurance. Together that runs from a few per cent to a tenth of the price.

Then the monthly side: utilities, the complex service charge, internet and security. In resort developments with a pool and a concierge this is a noticeable sum, payable whether or not you are living there.

How we work with this

We select for the purpose: relocation, rental income or preserving money. We check the developer and the title documents through local partners. We run the deal remotely, under a power of attorney, if you are not flying out to sign.

If this is your first purchase abroad, start with a conversation about taxes and upkeep rather than with the catalogue: that is usually where the budget turns out to look different.