If you are retired now or retiring in the next twenty years, NOW is the time to consider buying that piece of paradise!

Some of you reading this may be saying “What??? I don’t retire for 20 years yet … there is still plenty of time” … but is there?

Research shows that over the next 10-11 years there will be over 1 billion people who will reach retirement age. Many of them want to buy their piece of ‘Paradise’ … it is estimated that as many as 123 million of them will be considering doing this in the next 18 months and approx 8 million of them will be from Canada!!!

There is only so much paradise out there – only so many beach front, ocean view, and mountain retreats.

Experts believe that the same thing is going to happen to prices in the vacation, 2nd home, and retirement offshore markets that we have seen happen in our local housing markets.

Think about the price your parents paid for their 1st home and the price they would pay for that same property today – tens of thousands of dollars apart. The same thing is going to happen to the ‘paradise’ market! Those that get into the market first will reap the greatest rewards!

So how and where do you find your piece of paradise?

First, it is important to make sure that you are buying in the right location for YOU & your lifestyle!

Take a moment to remember a time when you were enjoying a ‘piece of paradise’ … maybe you were sitting on a beautiful beach, listening to the waves with a cold beverage in your hand or maybe it was relaxing & breathing in the fresh clean air in a mountain village … and the thought crossed your mind that buying a place here would be perfect. But would it? Does it have everything you need to sustain your enjoyment of life? Imagine having to be in this ONE location for 100 consecutive days.

Could you?

Would you have everything that you need in this location to live? Is there shopping? Medical facilities? Is it a family friendly location for when your grandchildren come to visit? Is it accessible? Can you travel there easily? Are there direct flights, easy ferry access? Are there other ex-pats living close by? Are there social activities taking place locally that you enjoy?

Many people get caught up in the moment and buy impulsively which can often prove to be a very expensive mistake. If you REALLY fall in love with a place it will be worth making sure you do it right. Take a deep breath, step back, come home and do your research before signing anything. There is a lot to consider even if you are not going to live there full time. Take time to consider the 100 days question. Consider what are the core elements that are key to you being able to live a full, rich life in a location for an extended period of time.

When buying in Paradise it is essential to do your due diligence and research before making any commitment!

You will need to find and work with professionals who know the local market. Some of the people on your ‘team’ should include:

Qualified reputable Realtor – get a referral to a knowledgeable Realtor in your chosen location. Work with a Realtor who will be sure to have YOUR best interests in mind. Licensing laws for Realtors are not the same everywhere. We have some of the toughest licensing requirements here in Canada – unfortunately the same cannot be said for many other countries.

Many off shore locations have NO MLS system. Good Realtors in these locations do a significant amount of research to find properties that meet their buyers requirements and they generally have to drive significant distances to show them the property. Unfortunately, some tourists have abused Realtors in the past and used them as a way to get a free tour of the countryside with absolutely no intention of buying. Recently I have noticed Realtors in some locations have started charging a fee for their services (these fees are refunded if you purchase a home from them within a year). Of course you will be notified in advance before you make an inspection trip.

Developers – if you plan on buying something new, pre-construction, or off plan, be sure that you are dealing with a well-established developer. Ask what other developments they have completed & if possible go and have a look. Do they have a history of completing projects on time? How long will it take to build your new home? What happens if construction is delayed? What kind of warranty do they have? If at all possible, don’t buy what you can’t see!

Ideally, they will have some model homes or condos already completed that you can look at. In this case, check the construction and finishing carefully to reassure yourself that you are dealing with a quality developer.

Local Lawyer – Your Realtor will generally be able to recommend an English-speaking lawyer to you who will be able to:

• Handle the closing of the transaction locally for you.

• Ensure that the title is clear – generally you don’t want to be buying property with ‘rights of possession’ and you need to fully understand the terms if you are buying a home with a ‘land lease’.

• Help you to understand the closing process & costs involved

• Ensure that the contract is accurate. Often the contract will be prepared in the native language and then translated to English. It is essential that the English translation matches the contract in the native language as it will be the native language version that is taken to be the official version should ever a dispute arise. Remember that you will also be subject to the contract laws of the country you’re buying in should you have a dispute with the developer

• Check to see if there is a clause in your contract that allows the builder to charge you extra if material prices increase? If so how much? Is it fixed or variable?

• Can you re-sell the property prior to closing? If so what are the costs involved?

• Advise you on residency visa requirements and assist with applications. etc.

Financing – in most countries it is possible to arrange local financing. However, you will generally find that interest rates tend to be quite a bit higher (8+% in most cases) and down payments will be 30% or more. It is certainly do-able and it will require patience. If you have a significant amount of equity in your current home you may be able to use this to buy your piece of paradise or at least use it to minimize the amount you need to borrow off shore. Often developers will have financing options available. You may also receive a discount for paying cash – another good reason to arrange a Home Equity Line of Credit (HELOC) on your local home if possible.

Other things to consider …

Title Insurance – Is it available? The major title insurers are now operating in many Caribbean countries – but not all countries yet.

Deposit – Make sure you know who will hold your deposit where and how you can get it back if the transaction doesn’t go together? Never send your full deposit until you have an agreed contract!

Tax implications – understand what to expect with respect to taxes, both at home and abroad. Proper tax planning is essential if you are planning to spend significant time outside of Canada, or are thinking of moving offshore in retirement.

Property investments – Ask if there are incentives for owning investment properties? Is there a rental pool operating? What are the management fees that will be deducted from rental income?

Property Management – Will you need to engage a property manager? Is there a property management contract for the development you are considering? What will property management cost?

Exit Strategy – do you have one?

These are just a few things to think about when beginning to consider buying offshore property.

In many locations you will find it is a buyers market and there are some very good buys out there.

Remember don’t impulse buy – it is so easy to get caught up in the sales hype, false urgency or because someone says you should! Get the information, come home, evaluate whether it is the right ‘fit’ for you and your life style. If it is, then do your research and then return to buy. Even if you end up having to pay a little more for visits and advice up front, in the long run it will be much cheaper than buying impulsively and making a very expensive mistake.

Please contact Sue by e-mail or call 1-800-209-3214 for assistance and information on buying International Real Estate!

Information taken from sources believed reliable however buyers should verify all information for themselves.