In Russia, information about real estate objects for sale is widely available through print media and electronic databases. However, this applies only to Moscow and suburban cottages, since information by region, especially on the sale of land plots and rural houses, is highly fragmented.
The degree of openness of such information varies in foreign countries. For example, in the USA, almost all offers are available via the Internet – just type www.realtor.com – and you have more than 3 million offers with a detailed description of the object, the area and the contacts of the realtor. Moreover, the broker who placed the offer is responsible for the accuracy of the information and its timely updating. But in Italy, people generally do not like to advertise that they are selling a "family nest", so the information is distributed mainly through local agencies.
In most countries, a mere mortal cannot get free access to all market offers. The fact is that realtors abroad are approached not to check the legal purity of the transaction, but just to search for an object. Therefore, the natural way is not to look for real estate yourself, but to contact a local agency or a Russian company that has a partner in this country.
2. Real estate business
When buying real estate, it would be nice to have an idea about the mechanism of real estate business in this country. In Russia, it is customary to pay an agent 5-6% both when buying and selling real estate. However, in many countries, the buyer does not pay the realtor at all – the seller's agent shares the commission with him. In some countries, the percentage of commission depends on the price of the object. There are discount brokers providing a limited set of services, as well as agents working for a fixed fee. If your agent is trying to "embed" his remuneration into the total amount of overhead, it is worth looking for another company: all payments should be clear and transparent.
There is another subtle point. By contacting a local agency with a request to pick up something for you in this country, you may encounter a company that represents the interests of sellers. She needs to sell her "exclusives", which are not necessarily good at all, and sell them as expensive as possible. An inexperienced foreigner may be given an illiquid, and the realtor will take a commission from both sides of the transaction, contrary to local rules. Therefore, beware of buying housing on the secondary market if the agent persistently offers a limited number of objects and does not express readiness to look for something on the open market.
3. Execution of the transaction
If a foreigner is told about the system of monetary settlements and transaction processing adopted in Russia, he will be shocked. Nowhere, except in Russia, you will not encounter the need to deposit cash in a safe deposit box. But the saddest thing is that we still do not have a system for protecting the rights of a bona fide buyer. In Russia, realtors can only check an entry in the state register and an archived extract from the house book, but such a "check" protects only from primitive fraud, and almost any transaction in Russia is easy to challenge.
In the West, for many years there has been an institution of title – the state registration of the history of the emergence and transfer of ownership rights to each real estate object. The elements of checking the legal history of the object being sold are included in the mandatory procedure for completing the transaction. In a number of countries, for example in Italy, a notary is responsible for everything. Moreover, he does not answer theoretically, as we do, but with all his property. In other countries, such work is done by lawyers. In the USA there is a system of title insurance, in other states the state guarantees the rights of the buyer. In general, it is much safer to buy "secondary" housing abroad.
4. New building without problems
In Russia, the construction industry has already become a symbol of mass fraud in the minds of the population. A clear illustration is thousands of defrauded depositors who exist in almost all regions of the country. Not so long ago, a law on shared participation in construction was adopted, which was designed to protect the rights of consumers. But the naive idea of the deputies failed – in Moscow, according to the norms of this law, no more than 5% of apartments are sold. The remaining 95% of buyers are still not protected from the arbitrariness of the developer.
Abroad, the only serious problem may be the delay in delivery dates, but this is typical only for countries with an emerging market. For example, last year there were many such cases in Montenegro, where developers often deviate from the agreed project, and they try to settle inconsistencies with bribes, but not everyone succeeds. However, none of the buyers apparently lost any money. In Western Europe, such problems are unlikely at all.
5. Calculation scheme
Abroad, when buying a new building, it is not customary to pay 100% of the cost at once, as in Russia. For example, in Bulgaria, when buying apartments at the off-plan stage, the buyer first pays only 1000-2000 euros. Further payments are made in accordance with the stages of construction, the last one – at state registration. Another difference from Russia is a large number of ready–made apartments on the market. And in Spain and a number of other countries, there is a system in which the buyer's money does not go to the developer, but to a special savings account in a bank, while the bank issues a preferential loan to the developer. This guarantees the safety of funds.
In addition to more civilized forms of settlements, the primary market abroad is also pleased with the fact that housing is sold with full finishing. As you know, in Russia half of the construction work falls on the buyer: apartments in panel houses are sold without finishing, and in monolithic houses – even without internal walls and wiring (this is called the beautiful term "free layout"). But abroad you get housing ready to move in. The cost of finishing is included in the price of the apartment.
6. Taxes will have to be paid
You have to pay for all the undeniable advantages of foreign real estate markets. First of all, we are talking about taxes. As a basis for calculating taxes, not underestimated BTI rates are used (as in our case when calculating property tax) and not the price of an object arbitrarily entered into the contract (as in Russia when calculating income tax on the sale of housing), but the real value of real estate, which is determined by a tax assessor according to an approved methodology. Also, in most countries, unlike Russia, you have to pay tax not only when selling, but also when buying a home.
Although Russia is gradually moving towards Western standards in the tax sphere, but today real estate transactions in Russia do not carry almost any tax burden for the owner. Taxes abroad are much more substantial, besides, in a number of countries there is a capital gains tax designed to make speculative transactions with housing unprofitable in the first few years after purchase. Another limiting factor is the progressive scale of the real estate tax. The tax burden is one of the factors that makes foreign real estate markets more stable than the Russian one.
7. Condominium or cooperative
Unlike in Russia, where the hasty privatization of housing has led to a mixture of different forms of ownership within one house, there are several varieties of apartment buildings in foreign countries. The two main options are a condominium or a cooperative. In the first case, the apartment is acquired as a property, and the house is serviced by a professional management company. In the second case, the house is managed by a collective of shareholders, and formally they own not the housing itself, but the number of shares corresponding to the size of the housing. When buying a cooperative, you need to carefully study its rules. For example, you may be banned from renting out your home, keeping animals, etc.
In some large cities, the bulk of the housing stock is not for sale, but for rent: in New York - 70%, in Berlin – 90%. Without a residence permit, it is impossible to rent a house in your own name in many countries (we are not talking about short-term vacation rentals). If you are buying an apartment in a new apartment complex, then for sure it will be a condominium. In resort areas, such housing is built with the expectation of foreigners. There are no special restrictions on the use of housing here, but it should be borne in mind that there is a set of services that you cannot refuse to pay for. At the same time, utilities are paid for in fact: for example, no one will require you to pay for heating if you do not use it.
8. Restrictions on construction
When buying a house with a plot of land, it is necessary to take into account numerous urban planning restrictions, which are much stricter and more detailed than in Russia. Red building lines, the maximum height of the house, the number of floors, the distance to other houses, the maximum area of the house, and in some areas even the architectural style – everything has its own regulations. In Switzerland, for example, it is believed that if a person is rich, then these are his personal problems, and there is no need to flaunt it. Therefore, it is forbidden to build large houses, (the maximum area for a plot of 1000 sq. m. m – 350 sq. m), it is impossible to combine plots, and in the Alps it is allowed to build only in the "chalet" style, so as not to disturb the established harmony with new-fangled architectural delights.
These rules are worth thinking about not only for those who buy a plot for construction, but also for everyone who is looking for a private house. It is quite possible that the previous owner violated the existing norms in some way, and inin this case, you will have to figure it out already. For example, in Spain, people often go to a trick: in order to circumvent the restrictions on the maximum area of the house, they immure part of the premises during construction, and when measurements are taken, they do "redevelopment". It also happens that the owner made an extension to the house and did not register it in the prescribed manner. A transaction for such an object can be successfully registered, and problems will surface later.
9. Special rules for foreigners
In a number of countries, there are restrictions that apply only to foreigners. Moreover, a special approach is sometimes applied to citizens of non-EU countries. Very strict rules for foreigners in Switzerland. Here the real estate is divided into two categories – for permanent and temporary residence. In most areas, a foreigner will not be allowed to buy a "second home" – even a sheikh or a king. And where it is allowed, there are quotas for foreign buyers, and you need to get permission. The situation is similar in Austria, although the rules there are a little softer.
In some countries, foreigners can buy real estate only for the company. This is especially often the case with the purchase of land and a private house with a plot. It is not difficult to create a legal entity, but do not forget about the additional costs. For example, in Croatia, which is considered not a very expensive country, the annual maintenance of the established company will cost about 5,000 euros. In some countries, there are stricter rules for foreigners than for local citizens in terms of inheritance or resale of real estate. These nuances should be taken into account when choosing a country.
10. Mortgage
Abroad, when buying real estate, people are much more likely to resort to mortgage loans than in Russia. In some countries, more than 90% of transactions are made using mortgages. There are no fundamental differences between mortgages in Russia and other countries, except for the fact that in a number of countries, construction and savings banks are more common than the classic American-style mortgage. The main thing that catches your eye is the loan rates, which are two times lower abroad than in Russia.
The list of countries that issue mortgage loans to foreigners is gradually expanding. Bulgaria and Turkey have recently joined this list. Unlike Russia and the USA, there are few places in Europe that issue "subprime" loans with a low initial payment and a questionable credit history of the borrower. And not all Russians can confirm their credit rating according to the criteria of Western banks.
