5 pitfalls when buying overseas houses, which you do not say

23.10.2010 12:26
Buying an apartment or house somewhere on the Turkish or Bulgarian beach attracts many Russians, for obvious reasons. Sometimes it is enough to look at the prices to hand reached for the phone. When I was six months ago, have worked to Participate in St. Petersburg, the housing in Bulgaria, interested in St. Petersburg even pensioners dream to exchange his room in a communal into individual "apartments" somewhere on the Sunshine Coast.

Plans are feasible. Another thing is that there for a long time istayavshim Iron Curtain does not always deal with real estate are as beautiful and as easy as advertising.

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Tax Trap
Purchase price - it's not just the cost of purchased housing plus commission realtor. For Russians, accustomed to the rates FRS, it is sometimes surprising that the list of expenses, which lies on their shoulders in the transaction and can be from 2 to 7% of the cost of housing.

Amount of taxes and levies paid by the buyer of real estate differs from country to country. Thus, the modest expenditure of waiting for a buyer in Bulgaria and Montenegro: here the total cost will be about 2%. In Turkey, the costs are already higher. Even higher - in countries of Western Europe.

And with their taxes happen, local tricks. Thus, in most countries, with real estate transactions by VAT, whose size can reach up to 20%. But sometimes, this tax is the responsibility of the buyer, sometimes - the seller.

For example, in Cyprus in real estate transactions the buyer pays VAT at 15%. True, the purchase, construction of which commenced before 1 January 2006, it is not taxed. In Spain, if the property is purchased directly from the contractor itself, the purchaser must also pay VAT whose sum is equal to 7% of project cost.

Sometimes there are cases where the seller, not differing too much cleanliness, exposes your property for sale at an attractive price. Excluding VAT. So for the buyer, had been attracted by ads, there could be a waste of time, or - hidden costs. This could easily happen in the markets of Bulgaria or Turkey.

So what if the price of an object differs markedly from the cost of similar worth to specify in advance the tax issue.

Apart from the cost when you buy, there are those who will serve on the owner in the future: property taxes, utilities, etc.

The highest property taxes expected to property owners in the "old EU" - France, Spain, Italy and the UK. And if a property owner is going to take my apartment lease and earn an income, he can not get away from income tax. In European countries it averages between 15 to 20%.

There is one more thing related to taxes and still not fully adjusted. Buying a home in those countries with which Russia has not signed the agreement on the absence of double taxation, the owner may come under a double tax burden. Fortunately, these countries there are very few. But, for example, including Latvia and Estonia - they do such an agreement with our country has signed. A property in these countries, recent years enjoyed a stable popular with residents of St. Petersburg.

Infrastructure Trap

If you buy an apartment in a residential complex, in addition to the traditional "light-water-heat", you will fall in the cost of maintaining the common areas: swimming pool for cleaning, security, salary, concierge service infrastructure. And it is not always harmless amount. They are usually prescribed in advance in the sales contract. But who among the Russians used to thoroughly acquainted with the contract? As a result, people are thrilled to buy apartments in the complex, where there are restaurants, a spa and sauna, and massage. A move in, discover that behind all these pleasures have to pay ... about 2000 euros per month. Regardless of how often the owners themselves will enjoy all the proposed amenities.

At the same time in the same complex with the same value of the apartments monthly fee for maintenance of common property may be only 600 euros. Because of infrastructure - only pool and sauna. So if you plan to spend in his apartment just a few weeks of the year may be reasonable to use third-party spas and restaurants? Resort towns typically do not suffer from shortages.

Crisis Trap

So happened that the Russians often there are certain stereotypes of "abroad": when it comes to buying real estate in Europe, many tend to relax and believe that "there is civilization." Blunting of vigilance often contribute to and realtors, who assert that the local markets operating smoothly running mechanism: all the deals go through a notary (or lawyer), and therefore nothing to fear. But this is only applied to countries with well-functioning economies, like Britain, France, Italy, Switzerland, etc.

But there are a number of European (and other) markets, popular among Russians, where everything is not so smooth: Montenegro, Bulgaria, the Baltic States, Turkey, Egypt, Thailand, United Arab Emirates. With the onset of the crisis in these countries, as well as in Russia, became urgent problem of unfinished construction. Local builders enjoyed boom in customers and is gaining momentum, not having sufficient own financial base. After the crisis, banks have curtailed their lending, the demand has fallen - and the developers were on the shallows.

It is true that realtors say that in many countries work on the suspended projects have resumed. But since the victory over the global financial crisis is still too early to celebrate (and otherwise would sound regularly dire predictions of prominent international economists), the purchase of "unfrozen" the new building - the same thing as a lottery ticket.

However, if you face the truth, then in Eastern Europe the market of new buildings before the crisis is not very safeguards for the buyer. In the same Montenegro actually engaged in the construction of half of the population. And the other half - built sales. Accordingly, the majority of houses built without any permits. The prices in the powerless homes "there were generally lower. A telltale mediators persuaded that any problems living in such facilities does not promise. Forgetting to mention the lack of any rights of the owners of such facilities. That is, if one day the government wants to demolish these buildings and paving on the site a new road, no claims to anyone to show you can not.

Theoretically legitimize such objects is possible. But only when the place will be made to the development plan (TLP) and will be paid by utilities (tax of built area, whose value depends on the area and location).

By the way, the situation with frozen objects in these countries may have an even more depressing continuation. In some regions, where the market is actively growing, builders began work on lending money - in the hope that they can repay the debts from sales of apartments. But with the onset of crisis, sales have stopped. Many developers have been insolvent, and the banks for repayment of debts took their unfinished objects. It is easy to guess who suffered in this situation the most.

If the owner timely notice signs of trouble, he could theoretically withdraw from the project. But sometimes in practice it is not so easy. On Web sites devoted to real estate sector is not uncommon complaint for developers who do not want to terminate the contract to return the money already paid. And, it is likely they have a right to be afforded a fine line in a multi-page contract in Arabic or Turkish.

Price Trap

Too many buyers are trying to understand the situation on foreign markets using data on price movements. At that often play and realtors: start talking about undervalued markets, opportunities for further growth in the same Bulgaria, Montenegro, Serbia, Hungary, etc.

But the dynamics of the price - a rather tricky score.

First, the nature of this growth can be different. Thus some markets, where prices in pre-crisis time, swelled by leaps and bounds, were frankly investment. The most striking examples - Dubai and Bulgaria. All of that supposedly insane demand, which raised prices, in fact, had nothing to do with the popularity of local apartments and villas. The British, Germans and Dutch do not fell out with the sudden love for the rest of the Bulgarian coast or the excitement prior to artificial islands in Dubai. In these markets reigned resale contracts: essentially the same game as on the exchange.

Just as the securities were purchase and sale contracts, investment contracts. This acceleration in prices for customers is fraught with at least two troubles. Firstly, the fact that in the worst possible time price bubble burst. And accordingly, the prices went down, as happened in most countries of Eastern Europe and Dubai.

The second implication - that the future liquidity of the housing will be very low.

The growth of prices and liquidity in general are not always directly proportional. Many home buyers have fallen on the market right now console themselves with the upbeat news: the prices are stabilized, and some countries are even beginning to show growth.

But alas, this does not guarantee a bright future to your investment. Most of the "burst" of markets - Bulgaria, Spain, Montenegro, etc. - were overstocked new buildings. And even with the resumption of buying activity the entire amount will be sold out any time soon. And accordingly, the market will remain sluggish, and sell it to standard apartments will not be easy: take a wait indefinitely, or a substantial discount.

Another thing, if you do not want to part with the purchased sites and intend to use it at your pleasure. Then these problems for you is not too relevant: bought the apartment is not going to get worse because of their illiquidity.

Legitimate trap

Even well-established mechanisms from time to time give the crashes. Foresee all of them impossible. But we can at least browse through the Internet to gather information on the forums about the market vending country. It was here that often pop up the most outstanding complaints. And sometimes not even have to delve into the blogosphere - just news.

So, a year ago has received a sufficient extent the history of British couples Orams, sudivsheysya because of his home in Northern Cyprus. In 2002 the family bought a house with a plot of the Turkish Cypriots. All documents, including the right to property, were seemingly in good order. However, some time later Metelios Apostolidis, Greek by origin, has filed a lawsuit Nicosia (Cyprus) on the Orams, argued that the sole legal owner bought their plot in northern Cyprus and that the land his family lost in 1974. In accordance with international law, his right to property has a greater force than the right of Turkish Cypriots who sold the Orams site.

After much litigation in the courts of different levels of the European Court ruled in favor of Greek.

The root problem is that after the division of Cyprus since 1974, Turks began to actively sell the land and property in Northern Cyprus. At far lower prices than it cost to Greek Cyprus. Naturally, the buyers flocked to such prices like moths to a bright lamp. As a result, today from 6 thousand transactions made by the British in Northern Cyprus, 4 th should be avoided. In this case, property in Northern Cyprus, and now continues to be sold with the same scale. And of course, at very attractive prices.

Of course, in most countries, the buyer is not exposed to this risk. But with poor knowledge of local laws may be other, similar in essence, into trouble. Thus, in some countries there are restrictions on the use of the land: that is, you can buy it and build on it whatever he wants, no.

In addition, in some countries there are restrictions on the purchase of real estate by foreign persons. For example, in Croatia, an individual can not make a purchase. To deal requires registration of a company in the country. Other countries may have problems with the purchase of land, such as in Bulgaria. So, even without the help of professional realtors, does not prevent myself to gather as much information about laws, taxes and possible surprises in the country where you intend to create a foothold overseas.
Content tags: Overseas property
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Your comments:
В Казахстане можно купить дом с соседями рабовладельцами и махаля ,это общежитие на 100 человек на 6 сотках.
Та ладно краски то сгущать ...все нормально, покупают и радуются жизни ...Нравится россия ...ну и живите в снг....
М-да...Мечты о собственном домике в теплой стране на берегу залива как мечты об утраченном детстве. Остались только воспоминания...