The Real Cost Of A Home Overseas: Beyond The Purchase Price

Transaction costs come first. Depending on the country, the costs typically include a property transfer tax, notarial charges, land registry charges, the cost of legal advice and broker fees. For budgeting purposes, set aside a meaningful percentage on top of the price, then check the exact local rates.



Recurring property taxes come next. Assessment methods differ enormously, and a number of markets levy different rates depending on residency. Where the dubai marina property investment sits empty most of the time, additional levies sometimes apply.



Service charges are easy to underestimate. A flat in a managed building with a swimming pool, an elevator and round-the-clock security generates recurring costs that keep coming even when the flat is empty. Request the last two or three years of accounts before you commit, and enquire about any planned major works.



Distance adds costs that local owners never see. A caretaker must handle keys for emergencies, receive correspondence from the authorities, and organise routine maintenance. A management company usually takes a monthly fee, and going without it often becomes expensive in a different way.



Insurance, utilities and eventual selling costs finish the picture. The tax due on a future sale often applies to non-resident sellers, and niksic property prices the resident rate is not always the one that applies. A good discipline is to build a five-year cost model before you commit — the figure is usually higher than expected.