Before deciding where, when, or indeed whether to buy a home abroad, it's important to do your homework thoroughly and investigate all the possibilities. It may be that you already know the country where you wish to buy a home and have a good idea exactly what you want - but have you thought about the alternatives? It isn't uncommon for buyers to regret their decision after some time and wish they had purchased a different type of property in a different region or even in a different country!

The first question to ask yourself is exactly why you want to buy a home abroad? For example, are you seeking a holiday or a retirement home? Do you want a summer or winter holiday home or both? Are you primarily looking for a sound investment or do you plan to work or start a business abroad? Perhaps you have been transferred abroad by your employer or offered a job abroad for a limited period (in which case it's usually better to rent than to buy). Often there are a combination of reasons for buying a home abroad, for example many people buy a holiday home with a view to living abroad permanently (or semi-permanently) when they retire. If this is the case, there are many more factors to take into account than if you're 'simply' buying a holiday home. On the other hand, if you plan to work or start a business abroad you will be faced with a whole set of different criteria.

Which Country?
Having decided exactly why you want to buy a home abroad, the next thing you need to do is choose the country. If you're looking for a holiday or retirement home or 'simply' wish to made a long-term investment, you will be faced with a wealth of choices. There is, of course, no perfect country for everybody, although most people manage to find their particular dream home in their ideal country. Many retirees, particularly North Americans and northern Europeans, spend the winter abroad and return to their home countries in the spring or summer. This allows them to take advantage of the milder winter weather abroad, e.g. in Spain, Florida or South Africa, and spend summer with their families in their home countries.

When choosing a country there are numerous considerations to take into account. For example, do you want to enjoy year-round sunshine or are you only interested in a summer home? Do you want to live inland or close to the sea? Do you wish to ski, sail or play golf? Do you need or wish to be 'close' (measured in driving or flying time) to your home country or another country? Do you fancy living on an island or on the mainland? City, town, village or country? Can you speak the language or are you willing to learn? Will you be able to sell (at a realistic price) should the need arise?

You may already have some preferences, possibly influenced by where you have spent a number of enjoyable holidays or where your family and friends already own homes. Whether you're looking for a permanent or holiday home, you should choose a country that suits your personality and tastes, as this will be a key factor in your future enjoyment. For most people the primary consideration is the climate, particularly if they're buying a holiday home. If you're buying a home that will be used between spring and autumn only, you won't be too concerned if it's deluged or buried in snow during the winter. On the other hand, if you're seeking a winter holiday home you will want somewhere with a reliable snow record.

Renting
If you're uncertain about exactly what you want, how much you wish to pay and where you want to live, it's advisable to rent a furnished property for a period in order to reduce the chances of making a costly error when buying in an unfamiliar country or region. If possible, you should rent a similar property to that which you're planning to buy, during the time of year when you plan to occupy it. If you're looking for a permanent home, it's advisable to rent outside the main tourist season and during the worst part of the year (weather-wise). If you're planning to buy a property in a resort area, long-term rentals are usually good value, particularly during the winter months. If you're looking for a rental property for a long let, it's wise not to rent unseen, but to rent a holiday apartment for a few weeks to allow you time to look around.

Renting allows you to become familiar with the weather, the amenities and the local people; to meet other expatriates who have made their home there and ask them about their experiences; and not least, to discover the real cost of living for yourself. Providing you still find the area alluring, it will also allow you plenty of time to look around for a permanent home at your leisure. The wrong decision regarding location is one of the main causes of disenchantment among foreigners who purchase property abroad. Renting 'buys' you time to find your dream home at your leisure.

Research
Having decided the country where you plan to buy a home, your next decision will be to choose the area and the type of home to buy. The secret of successfully buying a home abroad is research, research and more research. You may be fortunate and buy the first property you see without doing any homework and live happily ever after. However, a successful purchase is much more likely if you thoroughly investigate a country, its regions, the type of properties available, prices and relative values, and the procedure for buying property. It's a wise or lucky person who gets his choice absolutely right first time, but you will have a much better chance if you do your homework thoroughly.

As when making all major financial decisions, it isn't advisable to be in too much of a hurry. Many people make expensive (even catastrophic) errors when buying a home abroad, often because they don't do sufficient research and are simply in too much of a hurry, often setting themselves ridiculous deadlines such as buying a home during a long weekend break or a week's holiday. Not surprisingly, most people wouldn't dream of acting so rashly when buying property in their home country! Before deciding on a country it's advisable to do as much research as possible and to read books especially written for those planning to live or work abroad (such as those published by Survival Books!). Bear in mind that the cost of investing in a few books or magazines (and other research) is tiny compared to the expense of making a mistake!

Finance
Can you really afford to buy a home abroad? What of the future? Is your income secure and protected against inflation? In the 1980s many people purchased homes abroad by taking out second mortgages on their family homes and stretching their financial resources to the limits. Not surprisingly, when the recession struck in the early 1990s many of them lost their homes abroad when they were unable to keep up the mortgage payments. Buying a home abroad can be an excellent long-term investment, although it's possible to get your fingers burnt in the volatile property market in some countries. In many countries local people don't buy domestic property as an investment, but as a home for life. You shouldn't expect to make a quick profit when buying property abroad (although it's possible), but should look upon it as an investment in your family's future happiness, rather than merely in financial terms.

Mortgages
Mortgages or home loans for those buying a home abroad may be available in your home country, the country where the property is situated, and possibly also from financial institutions in offshore banking centres. The amount that can be borrowed varies depending on the country where the property is situated, the country where the loan is to be raised, the lender, and, not least, your financial standing. In the last decade, lenders have tightened their lending criteria in many countries due to the repayment problems experienced by recession-hit borrowers in the early 1990s, and some lenders apply strict rules regarding income, employment and the type of property on which they will lend. Foreign lenders, such as banks in offshore financial centres, also have strict rules regarding the nationality and domicile of borrowers, and the percentage they will lend. In theory, lenders based in European Union (EU) countries are allowed to make loans anywhere within the EU, but in practice a single market doesn't exist.

In some countries the law doesn't permit banks to offer mortgages or other loans where repayments are more than one-third of net income (which includes existing mortgage or rental payments). Joint incomes and liabilities are included when assessing a couple's borrowing limit (usually a bank will lend to up to three joint borrowers). Most banks require proof of your monthly income and all out-goings such as mortgage payments, rent and other loans and commitments. Proof of income usually includes three month's pay slips for employees, confirmation of income from your employer and tax returns. If you're self-employed, you usually require an audited copy of your balance sheets and trading accounts for the past three years, plus your last tax return. However, 'no-income qualifier' loans are available in many countries of up to 60 per cent of a property's value. If you want a mortgage to buy a property for commercial purposes you must usually provide a detailed business plan. In many countries it's customary for a property to be held as security for a loan, i.e. the lender takes a first charge on the property which is recorded at the property registry.

Mortgages are granted on a percentage of a property's valuation, which itself may be below the actual market value. The maximum mortgage granted in most countries is 70 to 80 per cent of the purchase price, although it can be as low as 50 to 60 per cent for non-residents and buyers of second homes. Loans may be repaid over 5 to 30 years, depending on the lender and country, although the usual term in most countries is 10 to 20 years for residents and possibly less for non-residents. Repayment mortgages are the most common type in most countries, although endowment and pension-linked mortgages may also be offered. Repayments are usually made monthly or quarterly, although bi-weekly payments (which reduce the interest considerably) are also possible in some countries.

Note that you must add expenses and fees totalling from around 5 to over 20 per cent of the purchase price (depending on the country) to the cost of a property. There are various fees associated with mortgages, e.g. all lenders charge an 'arrangement' fee and although it's unusual to have a survey in most countries, lenders usually insist on a 'valuation survey' before they grant a loan. Always shop around for the best interest rate and ask the effective rate, including all commissions and fees.

Foreign Currency Loans: It's generally recognised that you should take out a mortgage in the currency in which your income is paid or in the currency of the country where a property is situated. However, it's possible to obtain a foreign currency mortgage in major currencies such as GB£, US$, Swiss francs or Euros. In the 1980s and 1990s, high interest rates in many countries meant that a foreign currency mortgage was a good deal for many people. However, most borrowers should be wary of taking out a foreign currency mortgage, as interest rate gains can be wiped out overnight by currency swings and devaluations.

The advantage of having a mortgage in the currency in which your income is paid is that if the currency is devalued against the currency of the country where you own a property, you will have the consolation that the value of your home abroad will (theoretically) have increased by the same percentage when converted back into your 'income' currency. When choosing between various currencies, you should take into account the costs, fees, interest rates and possible currency fluctuations. Irrespective of how you finance the purchase of a home abroad, you should always obtain professional advice. Note that if you have a foreign currency mortgage, you must usually pay commission charges each time you transfer currency to pay your mortgage or remit money abroad. If you let a home abroad, you may be able to offset the interest on your mortgage against rental income, but pro rata only. If you raise a mortgage abroad or in a foreign currency, you should be aware of any impact this may have on your tax allowances or liabilities.

Legal advice
It cannot be emphasised too strongly that anyone planning to buy (or sell) property abroad must take expert, independent legal advice. Never sign anything or pay any money until you have sought legal advice in a language in which you're fluent from an experienced lawyer (preferably someone who has been recommended). If you aren't prepared to do this, you shouldn't even think about buying a home abroad! The majority of people buying a home abroad don't obtain independent legal advice and most people who experience problems take no precautions whatsoever when purchasing property. Of those that do take legal advice, many do so only after having already paid a deposit and signed a contract or, more commonly, after they have run into problems. You will find the relatively small cost (in comparison to the cost of a property) of obtaining legal advice to be excellent value for money, if only for the peace of mind it affords. Trying to cut corners to save 'a few pence' on legal costs is foolhardy in the extreme when a large sum of money is at stake. However, be careful whom you employ, as in certain countries some lawyers are part of the problem rather than the solution!>

Location
The most important consideration when buying a home abroad is usually its location (position), or as the old adage goes, the three most important points are location, location and location! A property in reasonable condition in a popular area is likely to be a better investment than an exceptional property in a less attractive location. There's no point in buying a dream property in a terrible location. Note that the wrong decision regarding location is one of the main causes of disenchantment among foreigners buying property abroad. Where you buy a property will depend on a range of factors including your personal preferences, your financial resources and not least, whether you plan to work. If you have been offered a job abroad, the location of your home is likely to be determined by the proximity to your place of employment. However, if you intend to look for employment or start a business, you must live in an area allowing you the maximum opportunities.

Getting there
Although it isn't so important if you're buying a permanent home abroad and planning to stay put, one of the major considerations when buying a holiday home is communications (road, rail and air links) with your home country. How long will it take to get there, e.g. by air, taking into account journeys to and from airports? Is it possible to drive? One of the main advantages of being able to drive to a holiday home abroad is that you can take much more luggage with you (including provisions unavailable locally) and the cost for a family may be significantly lower than using public transport.

Could you travel by bus or rail, e.g. via Le Shuttle from Britain? What does it cost? How frequent are buses, flights or trains at the time(s) of year when you plan to travel. Is it feasible to visit a holiday home abroad for a long weekend, given the cost and travelling time involved? Note that some charter flight companies can be unreliable and over-booking is often a problem in the high season. If you plan to make frequent trips to a home abroad, it obviously makes sense to choose somewhere that involves a relatively short journey and isn't too expensive. If a long journey is involved, you should bear in mind that it takes most people a day or two to fully recover from a long journey, particularly when a long flight (and possibly jet-lag) is involved.

Renovation/Restoration
In some countries (e.g. France and Italy), many properties purchased by foreigners, particularly homes in rural areas, are in need of restoration, renovation or modernisation. The most common examples are 18th and 19th century farmhouses and village houses that have been almost totally neglected since they were built (or abandoned) many years ago. A derelict building often needs a damp-proof course, timber treatment, new windows and doors, a new roof or extensive repairs, a modern kitchen and bathroom, re-wiring, central heating and decorating.

It's vitally important to ensure that a property has sound walls. Buildings that have walls with serious defects (e.g. bulging) are best avoided, as it's usually cheaper to knock them down and erect a totally new building! Almost any other problem can be fixed or overcome (at a price). A sound roof that doesn't leak is desirable. Don't believe a vendor or agent who tells you that a roof or anything else can be repaired or patched up, but obtain expert advice from a local builder. Preferably electricity and water should already be connected, as they can be expensive to extend to a property situated in the middle of nowhere.

How much you spend on restoring a property depends on your objective and the depth of your pockets. If you're restoring a property as an investment, it's easy to spend much more than you could ever hope to recoup when you sell the property. On the other hand, if you plan to use a property as a holiday home or live there permanently, there's no limit to what you can do and how much money you can spend. Note that original estimates can escalate wildly and many buyers have been bankrupted by the cost of restoring an old property!

Community Properties
In most countries, properties with common elements shared with other properties, whether a building, amenities or land, are owned through a system of co-ownership or community ownership. This includes apartments, townhouses and detached homes on a private estate with communal areas and facilities such as swimming pools, tennis courts and gardens. In the USA, condominiums are community properties (as portrayed below), but co-operative apartments are not, as apartment owners own a number of 'shares' (depending on the size of their apartments) in the corporation that owns the building. In general, the only properties that don't belong to a community are detached houses on an individual plot in a street, or a house on a plot of rural land. In some countries (e.g. in Britain) there's a system of leasehold, where the owner of the freehold of an apartment block sells leases for a number of years (e.g. 99 to 999 years).

Under co-ownership rules, owners of community properties own not only their homes (e.g. an apartment or townhouse), but also a share of the whole complex including the communal parts of a building (e.g. lifts, hallways and passages), gardens, roads, swimming pools, tennis courts and other sports facilities. Owners of community properties must pay service charges or community fees for the upkeep of communal areas and for communal services. Fees are calculated according to each owner's share of a development or apartment building, with shares apportioned according to the actual size (e.g. in square metres) of properties. For example, 10 properties of equal size in an apartment block would each pay 10 per cent of community fees. The percentage to be paid is detailed in the property deed. Shares not only determine the share of fees to be paid, but also voting rights at general meetings.

Rental Income
Many people buying a home abroad are interested in owning a property that will provide them with an income, e.g. from holiday letting. If this is your intention, it's important to ensure that letting, particularly short-term holiday letting, is permitted before buying a property. For example, in Cyprus holiday letting by non-resident home owners is forbidden, in Malta it's limited to villas with a swimming pool, and in some US states (e.g. Florida) short-term rentals (generally less than 30 days, but possibly less than six months) are prohibited. Rentals are restricted to protect local hotels (and others offering permanent tourist accommodation) and also because many permanent residents don't wish to live in a community or development where short-term rentals are commonplace. In some countries you may be required to notify the 'community of owners' or management committee before letting a home in a community development. You may also be required to notify your household insurance company if you let a property.

If you're planning on holiday lets, don't overestimate the length of the season, which varies depending on the country and region. In some countries the holiday letting season is as long as 16 weeks, while in others it's 10 weeks or less. In countries with a permanently warm climate, properties have year-round letting potential, which usually also applies to homes in cities and winter holiday resorts. One of the main points to bear in mind when buying a property for letting is access, which is of paramount importance. A rental property should usually be located as close as possible to the main attractions and/or a beach, be suitably furnished and professionally managed.

Avoiding Problems
The problems associated with buying property abroad have been highlighted in the last decade or so, during which the property market in many countries has gone from boom to bust and back. The laws regarding the purchase and sale of property in some countries are full of holes and an open invitation for dishonest sellers to exploit a foreign buyer's ignorance. On occasion some observers have even gone as far as to advise people not to buy in certain countries! However, although the pitfalls must never be ignored, buying property in most countries needn't be a gamble. There are millions of foreign property owners owning property in a large number of countries, the vast majority of whom are happy with their purchases and encountered few or no problems when buying their homes. This should be borne in mind when you hear or read horror stories concerning foreign property buyers abroad.

Security
Before (or soon after) moving into a new home it's wise to replace the locks or lock barrels and fit high security locks, as you have no idea how many keys are in circulation for the existing locks. At the same time you may wish to have an alarm system fitted, which is the best way to deter intruders and may also reduce your home contents insurance. Many companies provide home security systems connected to a central monitoring station. When a sensor, e.g. smoke or forced entry, detects an emergency or a panic button is pushed, a signal is automatically sent to a 24-hour monitoring station (with some systems it's even possible to check properties remotely from another country via a computer link). Some local security companies guarantee to respond to an alarm within five or ten minutes.

External security lights (that switch on automatically when someone approaches); timed switches for internal lights, radio and television; dummy security cameras; and tapes that play barking dogs (triggered by a light switch) may also help deter burglars. Holiday homes are particularly vulnerable to thieves and in some countries they are regularly ransacked. In many countries it's common for owners to fit two or three locks on external doors, alarm systems, grilles on doors and windows, window locks, security shutters and a safe for valuables. A dog can be useful to deter intruders, although it should be kept inside where it cannot be given poisoned food.