“Buying foreign real estate is kind of like buying real estate in the Wild West. 150 years ago they probably didn’t have an MLS, local board of Realtors, or disclosure laws,” says foreign investment specialist Tom Phelan. I had the chance to catch up with him today and pick his brain.

As described by Phelan, the system of real estate ownership transfers outside of the US often differs drastically from what we are accustomed to. “The guy fixing your flat tire in Panama or someone in Italy selling you a bottle of wine is as apt to say that they have a cousin selling a piece of property [as any other person]“. Many countries do not require a license for one person to represent another in a real estate sales transaction for a commission. In some countries, mortgage financing is virtually nonexistent and title insurance may be unavailable. Because of these differences, Tom recommends that you always visit a foreign location before considering purchasing real estate there and also recommends not buying on the first trip.

Probably the most interesting topic of our conversation was the effect of the declining dollar on the prospect of Americans purchasing foreign property. “[Because of the declining US dollar] the window of opportunity is closing in some regions, but remains wide open in others”. One country that [Read more...]