Buying International Property: An August guide

Why buy international property?

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For many families, buying a house overseas – particularly in enduringly desirable destinations like the French Riviera, Tuscany and the French Alps – epitomises the dream of international travel. Owning a ‘home away from home’ in Italy, France, Spain or the UK can unlock a new lifestyle, whether you seek the excitement of a vibrant city enclave or the peace and tranquillity of an island abode. Here are a few of the most alluring reasons to buy a property abroad:

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Absorb rich cultural experiences‍

Buying a property abroad creates the perfect opportunity for cultural exposure – particularly if you choose to buy a second home in a place that offers a distinctly different lifestyle from home.

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Indulge in adventure‍

‍‍For those who love to hike, cycle, swim or ski, buying property in Europe’s ever-desirable French Alps or Balearic Islands, for example, can open up new opportunities to satiate your appetite for adventure.

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Explore diverse activities

‍From wine tasting in Tuscany to uncovering the hidden gems on the doorstep of your Parisian Pied À Terre, buying international property can open the door to unique activities you might not be able to enjoy at home.

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Investing in a home for generations

‍Whether buying property abroad is an emotional or financial decision, owning a second home in Europe provides a place for you to make memories as a family, as well as an equity asset that you can pass down to your kids.

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What to consider before buying international property

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Though the vision of owning a second home abroad is imbued with romance, finding and buying international property can be challenging. Here are some essential considerations, before you take the leap: 

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1. Choose your location wisely - the most important decision in buying a home abroad is where you can imagine yourself living for several weeks each year. It is a commitment, so the destination needs to feel like ‘home’.

2. Get to know your new neighbourhood - spending time in your new locale will give you a flavour of the lifestyle you are buying into.

3. Set a realistic budget - account for the property purchase price, fees and taxes, legal advice, renovations, and so on.

4. Understand the local property market - explore market trends, property values and regional economics before committing to buy. 

‍5. Know the legalities of buying in your chosen country - each country and region will have different laws and regulations governing foreign homeownership, so it’s essential to understand what they are.

6. Don’t buy the first property - try to see a handful of properties before you choose your dream home abroad.

‍7. Seek local expertise - the knowledge of a local estate agent and legal expert can be invaluable when negotiating the challenging journey of buying international property.

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‍What financing options are there for buying property abroad?

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Buying international property for residential or recreational purposes can be financed in a few different ways. You could make a cash payment, which would expedite the process. Or you could seek an international mortgage lender, who will know the ins and outs of buying property in that particular country. You may find that your mortgage rates are higher than a local would pay, however.    

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What are the different ownership models for buying international property?

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Depending on your priorities, you could buy a vacation home outright or explore a shared ownership model – such as August co-ownership. Choosing co-ownership over sole ownership offers more financial freedom and also allows you to share the burden of taking care of an international property. Some of the co-ownership models to consider are:

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1. Shared, or fractional ownership - whereby you own equity shares in a property – as with an August Collection – and can typically enjoy more time in your home with a higher investment return.
2. Timeshare ownership - whereby you purchase the right to stay in the home for a specified period each year, but are limited to that time only.   
3. Joint ownership - which may be shared with a friend or family member and gives each of you equal rights to your time there, plus shared purchase and maintenance costs.

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Why buy property in Europe with August?

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With an August Collection, you own equity shares in not one but five beautifully renovated homes in five of Europe’s most captivating destinations. From just €365,000, make the iconic cities of Paris, London, Rome, Cannes and Barcelona your new home with our Pied À Terre Collection. Or from €435,000, discover the idyllic lifestyles of Tuscany, the Côte d'Azur, Mallorca, the Cotswolds and the French Alps with a Signature, Premium or Prime Collection. 

We curate our Collections to ensure the perfect blend of accessibility, amenities and tranquillity. Even in the heart of the city, you will find a peaceful haven to escape to after a day of exploration. Our homeowner community is also meticulously chosen to protect each of our Collection shareholders.

From finding and renovating the most covetable properties, to taking care of the international purchase process and maintaining your homes, August handles every detail to make each stay absolutely effortless. There are no surprise costs, and there is nothing for you to do except enjoy unforgettable family holidays for 12 weeks a year, on average. 

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Buying an international property creates opportunities for exploration, relaxation and making precious memories as a family. The realities of finding and purchasing the perfect home from home can be challenging, however. 

With an August Collection, you have never been closer to unlocking the European dream and spending more time enjoying the places that capture your imagination. Schedule a call with an August Advisor and start your homeownership journey today.

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