Tips For Buying An Overseas Vacation Home

A majority of us have dreamed of owning an overseas home at home point in time. Owning a home overseas represents a different way of life, in a sun drenched tropical location that is teaming with activities and plenty of things to see. For many of us, owning real estate overseas is a dream that we all look forward to at some point in our lives.

If you have been considering buying a home in a foreign land, there are some things you should be aware of. Anytime you decide to buy a home in a far away land, there are traps and pitfalls that you need to be aware of. If you are aware of these pitfalls, you’ll go a long way in securing your home – safely and securely.

If you want to buy overseas real estate for the value, you should always keep in mind that real estate fluctuates – some months the value may go up, while other times it may go down. Not all countries have the same real estate economy, which makes it in your best interest to look into the economy before you buy a home. This way, if you are buying for the value, you’ll know whether or not your purchase will be profitable.

Legal systems are also something you should be aware of as well. Different countries do things differently, which is why you will need to look into the different legal systems before you decide on a property. The last thing you want is to purchase a home and find yourself totally unaware of how the proceedings go in the area you have chosen.

If you are buying your home to make some extra money, such as using it for a vacation or holiday home, you should always pay attention to the accessibility factor. If you plan to visit the home yourself for vacations, you’ll want to make sure that your property is easy to reach. If your property is hard to reach by automobile or plan, it will decrease in value and popularity over time. On the other hand, if your property is easy to access, it will be great for you and anyone else you decide to rent the property out to.

If you want the process to go as smooth as possible, you can always enlist the services of a real estate agent. Even though you may be buying an overseas home, a real estate agent will know the area and he can answer any questions you may have. Chances are that you aren't familiar with most overseas areas, which makes a qualified real estate agent a very worthy investment. Your agent can also make recommendations based on what you are looking for – and show you the homes that you wouldn't be able to locate without his services.

5 Major Reasons Why You Should Buy a Home Instead of Rent

There are times when it is better for a person to rent, but most often home ownership has many more benefits and advantages.

About 10 year ago a had a retired aunt and uncle who rented a condo in Las Vegas. Uncle Jim (not his real name) was a retired minister. Throughout his career he and his wife lived in parsonages, which are homes furnished by the congregation while they ministered there.

He and his wife told me that the biggest mistake they ever made was not to invest in buying a home. In their retirement years, when their other retired friends were living in homes that were almost paid off and had appreciated greatly, Uncle Jim and his wife were using a huge portion of their limited retirement money to make expensive condo rent payments. They strongly cautioned me not to make the same mistake they had.

Recent studies are showing that there are many benefits for both the owners and the community for owning your own home, including increased education for children, lower teen-age pregnancy rate and a higher lifetime annual income for children. Besides these, listed below are some of the primary advantages for owning your own house.

1. More Stable Housing Costs
   Rent payments can be unpredictable and typically rise each year, but most mortgage payments remain unchanged for the entire loan period. If the taxes go up, the increase is usually gradual. This stable housing cost especially important in times of inflation, when renters lose money and owners make money.
2. Tax Savings
   Homeowners can be eligible for significant tax savings because you can deduct mortgage interest and property taxes from your federal income tax, as well as many states’ income taxes. This can be a considerable amount of money at first, because the first few years of mortgage payments is made up mostly of interest and taxes.
3. Debt Consolidation
   If you need to, you can refinance a mortgage loan to consolidate other debts (an opportunity you don’t have if you are renting.) And the interest on this is also tax deductible.
4. Equity
   Instead of payments disappearing into someone else pocket, home owners are building equity in their own home. This is often one of a person’s biggest investment assets  Each year that you own the home you pay more toward the principal, which is money you will get back when the home sells. It is like having a scheduled savings account that grows faster the longer you have it. If the property appreciates, and generally it does, it is like money in your pocket. And you are the one who gets to take advantage of that, not the landlord. You can then use this equity to plan for future goals like your child’s education or your retirement.
5. It is Yours!
   When you own a home you are in control. You the freedom to decorate it and landscape it any way you wish. You can have a pet or two. No one can pop in and inspect your home and threaten to evict you.

Even young people, like college students out on their own, can often benefit from home ownership. It puts them ahead of other young people their age financially by helping with their credit and giving them what is often an excellent investment. Often a college student buying a home will rent the rooms out, and his or her roommates end up making the payments for the house. When the student is ready to move on, her or she can sell the home (hopefully making a profit) or keep it as an investment and continue to rent it.

Buying a home is an important decision. It is often the largest purchase a person makes in his or her life. Home ownership also comes with some increased responsibilities, and isn't for everyone. There are some disadvantages to home ownership that you should take into account.

1. Increased Expenses
   Your monthly expenses may increase, depending on your situation. Even if the monthly payments are the same, home owners still have to pay property taxes, all the utilities, and all the maintenance and upkeep costs for the home. Often you need to supply appliances that were furnished with a rental.
2. Decreased Freedom of Mobility
   Homeowners can’t move as easily as a renter who just has to give notice to the landlord. Selling a house can be a complex and time consuming process.
3. Risk of Depreciation
   In some areas with over inflated prices, there may be a risk that the house will depreciate instead of increase in value, if the prices go down. If you then sell the house, you may not get enough money from the home to pay back your mortgage, and you will still owe the mortgage company money.
4. Possibility of Foreclosure
   If for some reason you are unable to make your payments, you risk having the lender foreclose on your property  This can result in the loss of your home, any equity you have earned, and the loss of your good credit rating.

When considering home ownership, you need to weight the advantages and disadvantages for yourself. If you are like most people, you will find that home ownership is worth the risks and disadvantages.

When is the Right Time to buy your First Home?

There are many market predictions, however if you want to buy your first home—there is no wrong time. The motivation to buy is not determined by regional market conditions or by location. Industry opinions and investor speculation can not predict when a particular individual will be ready to buy. For the great majority of folks, the most compelling reasons to buy a home are based on individual circumstances and personal needs.

• Family needs and desires for children/parents/in-laws/couples 
• Convenience to home, work, school, social activities 
• Sense of achievement or fulfillment 
• Freedom and independence

Even though there are many changes in the market, both up and down—people still need and want to buy homes. This desire to buy a home is deeply rooted in the fabric of our consciousness. The value of homeownership gives far more satisfaction than ROI calculators can quantify.

Today, there are many different loan programs with flexible terms to fit all buyers. There are city and county down-payment assistance programs to assist in buying a home. For future buyers with blemished credit, there are debt reduction and counseling programs to help gain a fresh start.

How do you make the leap to become a homeowner? First, determine that you want to buy a home. Get your finances in order. Determine your financial situation and check your credit to determine where you fall as a borrower. Look at all of your available assets for your down payment and examine all of the finance options available to you. If you have some credit blemishes, take the time to make timely payments to your creditors to present the best financial picture. Make sure that you have a track record of stability in your employment history. Postpone any major purchases. Your actual home purchase may still be 12-18 months down the road, but you can still prepare for it now.

Get pre-approved for your mortgage. Once you’ve cleared the financial hurdles, talk to your lender or broker to find out how much you can afford to borrow along with the expected out-of-pocket costs you will need to incur for the closing. This will include the required down payment along with funds for closing costs. If you are buying in a seller’s market, you may want to search for homes below your approved price range, so that you can have the most room for negotiation.

Find a credible licensed real estate agent. Look for an agent that can work with you based on YOUR needs and your schedule. Check references of previous clients. You may not know exactly what you want in terms of a new home, and your agent should work with you to determine your needs and help you find a property that meets your immediate and future needs. Check with family and friends for successful agent referrals. Ask them how satisfied they were with his/her services and if they would use them again. Become an informed and practical buyer. Once you determine where you would like to live, determine what factors are most important for your family. Calculate your new commute time and research school information for your children. Make sure to evaluate the surrounding factors that are most important to you, along with factors that are least important.

Find a home that works for you. Envision yourself (along with your family living in the home). What are the key points of consideration for your home? If you spend a lot of time in the kitchen, then you want to make sure that the kitchen can accommodate your habits. If you will be working from home, make sure that your home office setup will work. Make sure that all of your telecommunications and electrical needs can be met. Make the offer. Once you have located a property that meets your needs, make an offer based on the listing price, along with comparables information and market considerations. Your agent can work with you to determine the best price, along with any contingencies for the sale.

It is good to get a home inspection, so that you can know what the potential pitfalls and future maintenance needs may be. In a seller’s market, you may find yourself bidding with several other buyers for a single piece of property. Work with your agent to determine what is customary in your area. This is when negotiation skills really come in handy!

Once your offer has been accepted, you will enter an escrow period, where all of the title research will be handled, funding requirements met; tax and title transfer paperwork managed. Prior to the close of escrow, you will sign all of your finance paperwork, and pay your remaining deposit and closing fees. After funding is complete, the title company will record the new purchase deed with the County Recorder’s office, and you will officially “close”.

Congratulations! It’s time to move. Make sure to connect your new utilities along with mail forwarding. The purchase of a home can be a lifelong achievement, but one that is truly a worthy accomplishment.