If you are just looking for an investment, you run some of the same risks any real estate speculator runs. Mainly, you risk buying at the top and having prices decline. If you are buying before the property is built, you risk construction flaws and the builder going under and the units not selling fast enough. That's a problem if you have carrying costs, like a loan. Here it has been fine. I know people who bought a condo for use as a vacation home, back when it was still just on paper, and bought two more units as an investment. They made deposits, but never had to pay for the extra units. They sold them just before the construction was completed and made a substantial profit.

If it is your first venture into real estate investment, buying abroad seems a little bit more than you should be taking on.

How much do you have to invest and how much can you afford to lose? If you have a chunk of money you were planning on putting into speculative stock, then it might be reasonable to buy investment property somewhere overseas. But if you are going to be using money that you had saved for a downpayment on your own home, then you shouldn't be buying investment property at all.

Hi!

One of the points most people forget, is that you should have to look at the inheritance laws of the country.

In most EC countries, if you have a house, you will be subject to local laws. So that usually means that your home will is worth nothing.

Many Expats have been caught for example in France because they thought they could leave a proprerty to a 3rd party.

First of all, you can not necessarily do it, because there are reserved heirs who have priveledges, then it can cost up to 60% death duties.

Yours,

giantpanda

That is something I never thought of. Interesting. So do you need to write a will in the places where you own property? In the US, the laws differ by state, but they all have laws that take over if you don't have a will. That's the situation you are describing, since the will in your own country doesn't count. We also have states where distribution laws override the will. For instance, in Pennsylvania, if you are married, one third of your estate must go to your wife, and if you have minor children, one third must be divided among them (or something close to that). Do the laws in France override any will you might make, too?

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The answer is basically "yes". Notwithstanding you have to take into consideration the laws and the practice of the land.

For example in France wills are pretty rare ( underless you have a rather high estate, and in very specific cases ). The matter on one side is more simple, because it is governed by your marriage contract, whereby here clauses can be instereted.

As foreigner if you buy in France, you will be classed "séparations de bien " - But the French interpretation of that.

But you can change the marriage contract - there are conditions.

1. If you have a " maison secondaire " in France, French law will override a foreigh will.

2. If you are a French fiscal resident then all you possessions ( except houses, flats in other countries ) are subject to French succession laws.

If you can send private messages on the site, I can tell you more - no charge basis( I am new on the site )

Yours,

giantpanda