TEXT BY BY HEaTHEr ann Cosimo
PHoToGraPHs From sTriPEs FiLE
welcometoeurope
10
M O V I N G
Buying a House Overseas
o
wning a home overseas may be one of
your dreams and you can make it come
true. Taking the leap to becoming a ho-
meowner is a significant step, no matter where
you are living. When buying overseas, there are
additional elements and unknown challenges
that often come into play.
Consider the market, economy and area
you are thinking about investing in. Property
laws, regulations and trends vary by country.
Americans tend to buy property with the idea
of fixing it up, selling it for more and upgrading
to a bigger and better house. Ask any German
what a"starter house"is and you will most
likely find yourself staring at a blank face. It is
unpredictable to buy with the main goal of sell-
ing for a huge profit. The fluctuation of housing
markets and regulations in certain countries
such as Germany, where the building of new
homes must be approved, can make it difficult
to reap monetary benefits. It is important to do
research and know what you are getting into.
unless you are next in line for an estate
inheritance, three main options exist: buy,
build or rent to own. If you decide buying is the
right choice for you, first establish your buying
power. Find a bank and figure out how much
financing you will have. oHA, overseas Housing
Allowance, will go toward mortgage payments.
For civilians LQA, or Living Quarters Allowance,
is referred to as PoQ or Personally
owned Quarters Allowance. It is crucial
to determine how much money you
will receive so you can gauge what you
can afford. Down payments make a big
difference in the interest rate. Along
with your monthly payments, there are
other enduring fees that need to be
taken into consideration such as insur-
ance, maintenance, taxes and utilities.
Ask around for recommendations in
regards to finding a suitable realtor.
The housing office can make referrals
and local papers usually have realtor
and broker information.
Weigh in the experts. Since the
home buying process varies from
country to country with different
property laws and regulations; this
makes it extremely important to find
an advisor or solicitor to help deal with
everything. Make sure your expert is
completely separate from your realtor,
developer or seller. Find someone
you can trust and understand to deal
with taxes, insurance issues and local
authority rules. Another smart starting
point is in the legal office. A lawyer or
legal advisor is crucial when it comes
to clearing hurdles or costly challenges.
It is advisable to always have a lawyer look over
any paperwork such as purchase agreements
and contracts, be sure to consult one before
investing.
Joerg Moddelmog, a German Attorney-Advi-
sor in Kaiserslautern says"It is a good idea to
have the value of the house appraised. As of
January 2009, the new energy usage estimate
which must be done by an architect or the
German T�V is helpful in determining whether
the house meets environmental standards."
Environmental regulations sometimes mandate
homeowners to invest in modernizations in
order to update the house.
If you are planning on staying overseas for
a long time or plan on retiring, buying may be
the perfect option. otherwise, Moddelmog says
"While it is fairly easy for an American to buy
real estate in Germany, it is not always so easy
for an American to sell real estate to a German
buyer. If a German buyer knows the American
seller must return to the united States, it makes
it less likely the seller will receive fair market
value for the property, assuming a buyer can
even be found."
However, there is an optimistic outlook on
the process of buying a home overseas. It is
worthwhile to find a realtor with easy access
to both American and German markets. This
increases your chance of selling or renting your
property quickly.
When it comes to buying and selling a home,
location will always play a deciding factor.
Proximity to a city center usually ensures higher
property value at a steady demand. Three years
is the average minimum time it will take to
break even on your investment. Realistically,
four-five years is the minimum length of time it
will take to see a gainful return.
If you opt for building, you may be under the
impression that you can choose what you want
and wherever you want it. And for the most
part, this is the case. The interior is where you
can unleash your wildest imagination. Due to
zoning laws, building codes and town regula-
tions, the outside of the house is more or less
out of your immediate control.
It is generally cheaper to build than buy. Real
estate purchase tax and broker commission,
if applicable, is based on the undeveloped
property. A house simply doesn't exist on the
property yet. Also note, VAT relief forms cannot
be used for the construction of the house.
Closely supervise the work of the building
company. Discuss in great depth what you
expect and how you envision each room. Build-
ers in Germany provide a five-year warranty.
However, if the building company goes into
bankruptcy, you as the buyer will most likely be
unable to recover any warranty claims. unless,
if the building company had that specific insur-
ance. It pays to keep a close watch on the work
being done. Evolving technology and inven-
tions place high demands on the building sec-
tor, gradually turning new houses into outdated
homes. Keep this in mind when building.
Renting to own is a viable option that you
may have to bring up yourself, as this method is
rarely used. If you enter this fairly unknown ter-
ritory, draw up explicit rules with your tempo-
rary landlord. This will help stave off confusion
over paying taxes, utilities and repairs. on a
final note, never sign a contract without being
shown an English version. It is always advisable
to have a lawyer look over the paperwork.
Buying a House Overseas

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