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Second PassportsBuying Property Abroad: Tips from Caxton - Lincoln Global Partners

September 19, 2023by Kathryn Funk0

Buying Property Abroad: Top Tips from Caxton

Torre Santa Antonio

Helping people make investments abroad is the business we’re in. Especially investing in real estate opportunities through Golden Visa programs in exchange for residency or citizenship. Buying property abroad can be a highly lucrative investment with a wide range of benefits. Often though, people come to us ready to make such an investment but need help working out the logistics to do so. 

Once you have chosen your home away from home destination overseas you’ll be ready to begin the property search and alas make your purchase. There are some particulars to buying a property abroad which you’ll need to give attention to, specifically how to pay for the property. A task which may seem daunting if you’ve never sent such a lump sum overseas before.

Our partners at Caxton, an international payment platform that makes moving money easier, have broken down the payment options for buying property abroad for you int his article. 

A version of this article was originally published on LinkedIn. Subscribe to Errol Izzet‘s ‘Money Movers and Shakers‘ newsletter to read his articles as soon as they are published.

Chose the best payment method

Aside from the purchasing the property itself, you’ll be responsible for upkeep costs, taxes and bills. In some cases there will be annual or monthly fees to account for as well. Depending on your circumstances, you’ll have different ways to purchase the property and send money when necessary. Four of the most common payment methods for buying property abroad are outlined below.

Cash

It may be the case that you have enough cold hard cash to purchase your property outright. Paying in cash can often give you the upper hand to better negotiate the price. When paying in cash you’ll need an international payment provider to exchange your currency and/or transfer such a lump sum payment. That’s where our friends at Caxton come in.

Arrange an overseas mortgage from a US/UK bank

Some European, UK and US banks have offices abroad and will allow you to take out a mortgage overseas. In this case, you’ll beed to consult an independent mortgage advisor, or wealth manager with knowledge and specialization in this area. They will be able to best advise on the market where you’re buying. Lincoln Global Partners partners with wealth managers who can advise on these aspects, just ask us in your consultation.

Arrange an Overseas Mortgage

Consider securing a mortgage from a bank based overseas, but bear in mind that this choice comes with both advantages and disadvantages. It’s crucial to recognize that overseas banks operate outside the regulatory oversight of the FCA (Financial Conduct Authority). To safeguard yourself against potential pitfalls, especially fraud, it is advisable to engage an independent lawyer and translator during this process.

Remortgage Your Home

Your eligibility for a remortgage hinges on various factors concerning your home. Essentially, a remortgage allows you to borrow additional funds against your property. It’s important to emphasize that this option can carry significant risks, so seeking advice from a mortgage advisor is strongly recommended.

Map Your FX Strategy

Regardless of the method you choose for buying property abroad, it’s essential to consider foreign exchange (FX) rates. Selecting a reputable payment provider who offers competitive rates and maintains a high level of trustworthiness and accessibility is pivotal to ensuring a smooth transaction for all parties involved.

If you’re making a full payment for the property, it’s crucial to secure a timely transaction at a favorable rate to avoid overpaying. In cases where you need to sell a property or liquidate investments to finance the purchase, the ability to lock in an exchange rate early in the process can relieve some of the financial stress. This can be especially cost-effective if economic conditions are unfavorable, and currency fluctuations are working against you.

Utilizing a Forward Contract to fix an exchange rate allows you to capitalize on the current rate, paying the majority of the cost at a future date. This means you only need to provide an initial deposit upfront, with the remainder payable at a later time, such as when your property sale concludes or your investments mature, and funds become available.

For those making monthly mortgage payments, setting up a regular payment plan is ideal. This ensures you benefit from a locked-in exchange rate each month, with payments processed automatically and punctually.

Consider partnering with a specialized payment company like Caxton, which can help reduce costs across various aspects of your transaction. Check out their website to explore their services and what they have to offer.

Caxton has over 20 years of experience in sending and spending money abroad. They’re an excellent choice to make international payments as easily as possible and we regard them as a trusted partner.

Not sure if Caxton is right for you? You can request a callback from their team of award-winning consultants who can chat with you about how Caxton can work with your needs.

Check out our Property Portfolios

Lincoln Global Partners has property portfolios in Greece, Portugal, Antigua and Barbuda, Dominica, Grenada, St. Lucia and more. All of our properties are golden visa or citizenship by investment eligible.

Kathryn Funk

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