To buy or to rent, that is the question. Moving abroad will bring with it many questions, but one of the most crucial ones is accommodation. There are several factors that one should consider before making a final decision, and one must not rush into it. Age, personal finances, the country and the neighbourhood, any future plans and the current real estate market should all be carefully thought about. Buying a house in your home country is already a big deal – let alone buying one in a new country. Therefore, it’s is recommended to weigh your options and look at both choices in detail. After all, we’re talking about your new home.
First of all, let’s go through some common factors. Think about your budget and whether you have enough money to purchase a house in the new country. If you’re thinking ahead, start saving. Start cutting down on the extra expenses – as little as they can be, as a whole they could add up to a great amount. Consider cancelling gym memberships or any other services that you are currently paying for. Additionally, you can look into the possibility of working overtime or getting a second job that will help you increase your income. Be responsible. You have a larger goal and you need to work for it to become a reality. You should also pay all your bills on time and try to keep credit card balances low! Whether you’ll be renting or buying, you’ll need the extra cash.
We’ve often been told to rent before buying or that buying isn’t worth it abroad. But is this a feasible solution? Renting is usually the preferred option for expats planning to return home after a few years. One of the biggest pros to renting is that you will not be responsible for major maintenance, as that will fall under the landlord’s duties. There’s no need to worry about the value of the house you’re living in – you are truly flexible. If you’re looking to rent, the first thing you need to do is set the period of time you will want to rent the apartment or house for. Long-lets tend to have a minimum of a year to them, however, if you are looking to rent for a shorter time, you’re likely to also find three-month and six-month rentals. This is usually agreed by a contract that state that you are the tenant of the place. Make sure to read the contract carefully to take note of the details. Additionally, the landlord generally asks for a deposit.
Renting and not owning the place is both an advantage and a disadvantage in itself. The pro is that you don’t have to pay for the major maintenance. If there’s a house-related problem – call the landlord and they will get it fixed. There’s also the positive of not taking out a large sum of money upfront. However, you aren’t the owner, and therefore, you cannot do whatever you want. Some landlords do not allow pets in their rented apartments, so check before whether the place is pet-friendly or not. Discuss with your landlord beforehand what the bills cover. Don’t hesitate to ask the landlord for additional services – you’re paying a good price, so check if they offer you free Internet or cable TV or additional stations. Some landlords are not inclined to allow their tenants to host parties or get togethers as they fear that some items may get broken, so you’d like to get that discussed before signing anything. We also advise you to see the property before making any payments. There are some adverts for rentals that are scams, unfortunately. Most are genuine and honest but it’s best not to risk it. On the other hand, you may find more options if you’re looking to rent instead of buying, therefore, you will have a wider variety of neighbourhoods to choose from. Renting is a cheaper alternative to buying property – and you’ll still be getting quality! That’s why you should be open and view most of your alternatives. Get an idea of what you could have and then compare them afterwards.
Buying property is always good investment. A major flaw of renting is that the property will never be yours – therefore there’s no goal at the end. In contrast to what we’ve said earlier, it will be your home, and no one can tell you no. You can do whatever you please – paint the walls the colour you desire, throw parties and get as many pets as you want. You are living in a home where you can feel at home as you can make it your dream home! You don’t need to think about lease contracts, terms, extra fees, bond payments or any other costs related to rent! Buying property is also more secure – you don’t need to fear receiving an eviction notice or having to pay more expensive rent due to the rise of the cost of living.
To add on, it automatically forces you to save money beforehand. Unless to have a substantial amount of money resting in your bank account, you will need to save money before to manage the down payment without any problems. This would serve as a great motivation to start budgeting and even learn to budget! Buying a house abroad is not much different from buying property in your homeland. The first step is to set a budget to know what price range the house must be in. A property agent could be a good option here, especially if you are not living in the new country yet. As always, don’t rush in! Take time to evaluate all options and this a big deal and a lot of money.
A loan is always a good option that you can opt for when it comes to buying a house, however, you will still need to complete the initial down payment. Before taking out the loan, check whether there are any schemes that might apply to you, as a first-time buyer in a country or as a new expat living there. This is one reason why an agent from the area may come useful! However, you will need to be disciplined to be able save up for the deposit and pay back the loan in a decent period of time. Any tips? Budgeting is one of the most obvious suggestions. Start cutting down on the extra expenses – as little as they can be, as a whole they could add up to a great amount. Consider cancelling gym memberships or any other services that you are currently paying for. You can look into the possibility of working overtime or getting a second job that will help you increase your income. Automatically deposit a percentage of your income in a new account as soon as it is received so that you will ensure that it is untouched. It is also a good idea to settle every other debt you may have ahead of securing a loan, so that you would cope with all the expenses that you have whilst keeping a comfortable lifestyle.
A fairly important question you must ask yourself is, what will you do with your current home? Will you be renting it whilst you’re away? Selling it? Leaving it as a getaway home if you ever decide to go back or visit your home country? Owning two houses may get complicated – even more if you’re renting it out. Remember, you won’t be in the country to meet or help the tenants. Renting your old home could be good money – but as mentioned, it’s hard work. If you don’t want to be disturbed whilst you’re away, consider asking a family member or a friend to take care of the business. The other alternative is selling it, which would generate a larger one-time income.