Buying Real Estate Abroad - Tips, Info, Experiences?

I bought in Costa Rica after having spent much time there over the last 6 years. I first discovered it on a surf trip(quality, consistent waves and 80 degree water!). I love this country and could go on for hours, but to your question.

Most importantly I spent a lot of time in the country and made some good local contacts. I then found some good blogs that discussed real estate ( www.welovecostarica.com) and used local newspapers to look for listings. There are large sites that that offer information, but mostly to general, some what disconnected. The most important thing I did was spend time in the area we bought in.

We bought because we love the country and some day hope to spend at least 3 months a year there(currently we spend 1 month) and it looks like this is where we will retire.

Speculating for investment is another animal which I would not recommend to most.

Finding a good local blog is a good place to start.

London - family reasons, so not really an investment situation. Having said that, I spent years
looking in a very specific market, got a place at a very good price (even then) and renovated
to suit our purposes. Renovation went very smoothly because the GC there was a long time
acquaintance and would have been MUCH shunned at local pubs if he did not do a good job.

For the London market, the best RE aggregator is www.findaproperty.com.

The property we bought was an "estate" property requiring extensive work, the sellers were not
eager to take our bid, and didn't respond to our first offer because we sounded fishy. So I don't know how much that would apply to anyone's situation. We didn't up the offer, but trotted out some family members
on the ground there to meet up with agent to reassure them that we were real.
Closing was very smooth. The London attorney was efficient and his paralegal/assistant was very
prompt with emails.

What are the tax implications of a rental property abroad? And/or how do I find out?

The Brits like to be frugal and save on temporary lodging - so that gives rise to something called the "chain". Basically, the sale of a property becomes contingent on the successful "completion" or closing of the seller's next property, and so on. It's not unusual for 3 or 4 properties to close or "complete" on the same day as a result and for chains to break. So if you don't have a property to sell, then you are more sought after as a buyer. The mortgage is process was similar to the one here, except for the lack of a 30-yr or 20-yr fixed rate product. At the time, 5 years was the longest term you could get. One result of this is that many owners are enjoying a rate bonanza right now because many more of them are paying closer to LIBOR than we are here because they have true floating mtges.

irs.gov. If it's a pure rental property, it's no different than a rental property here. The only thing is you have to adjust for currency fluctuations monthly so adding up rent (and interest) is slightly more of a hassle. The other thing that you want to be careful of, if you have other ties to that country, is that you don't become subject to taxation there as well.

The other thing to take into account is that the foreign property is not so easily put into a trust, due to U.S. requirements for U.S. trustees, etc.

I don't imagine too many people buy abroad as a pure investment, unless rentals are their livelihood (could be wrong, but just seems like a major hassle to manage property from such long distances when it's not your primary source of income). I think it's also one of the barriers to navigating the market, as nyc10023's story above indicates - people can be wary of Americans buying their property.

Did you guys use brokers in these deals or no?

I bought directly from a developer and hold it in a anonymous corporation, similar to an LLC here. financing can get tricky, though we did not use any. Although they don't get to much into the nuts and bolts of the transaction; "House hunters International" follows people buying abroad, it's on HGTV.We love to "Hunt it up"...

When did you buy in Costa Rica?
Did you buy in Nicoya, Tamerindo?
How has the value of your RE done over time?
Did you build or buy something built already?
How far from the water....walking distance?
Is you property easy to visit during rainy season?

Bought about 4 years ago, pre construction in a gated community. It is now complete with roads,water electric.
We bought in early,rolled the dice, paid 6 dollars per M2 todays value about $30 per M2.
We are approx. 3 miles south of Jaco in Playa Hermosa about 1mile from ocean. Nice mountain views.
Rainy season access no problemo and about 1 1/2 hours from San Jose. New highway to beach almost finished, then 45 minutes. Though I like the ride over the mountains.
Bought with the heart not as an investment. That said real estate took off soon after, to much going on to list. We have all permits and will start building a small house in November.
Pura Vida,

Keith

I bought in Paris 9 years ago. Turned out to be a good investment. I have a friend there who manages place and would not have bought otherwise. Buying was pretty simple, but you need to be aware of transfer and gains tax rules that wil apply when you eventually sell. E.g., gains taxes in France are high and most parts of renovations dont add to basis to reduce your tax.

I bought a beautiful apartment in Buenos Aires in 2002 when their economy dropped and the dollar to peso value soared. no mortgages available and it was an impulse opportunity to have a place in a city that I love. Could not have navigated the beaurocracy if not for knowing a real estate broker there. The purchase has worked out wonderfully as I get to stay there and rent it out when not using it.