Beware Buying Overseas for Retirement

Many people dream about retiring in a foreign country, Spain, the southern hemisphere, or another exotic location. This dream can turn into a nightmare if the property investor doesn't do their homework first. Mortgage lenders in foreign countries do not always operate by the same rules as the standard, popular banks.

Just visit any mortgage website and you'll learn things that we take for granted in this country:

It is impossible in many countries to borrow a 100% mortgage.

Banks are reluctant to lend money for investing in certain countries.

In some countries, you can take your money in, but if you sell the property at a later date, the government will not let you take the money back out of the country.

There are some options, like the buy-to-let developers in other countries that offer 'guaranteed rents.' Unfortunately, they overcharge on the property, then give the property owner back their 'own money' in the form of rents. However, the property is not let.

Many foreign countries experience a difference in the lender's idea of the house property, and the real estate boards. This often leaves the property owner with more than 20% to put down on the property.

Not all banks will lend money for investing in foreign countries.

Retirement should be a time to relax, a reward, a dream come true, and it can be...just do your homework first.