Dealing with what you own

If you are moving to another country with your suitcase, to some extent, you are lucky. You do not have to deal with selling a property, transferring the ownership of a car, or moving money across countries.

Moving often involves questions about assets. What do we do with the house? What if the market isn’t favorable for selling our house right now? What do we do with our bank accounts? Should we buy a new home where we move to?

For your information, the below aren’t financial advice. You will need to be responsible and take your own decisions.

What do i do with my house?

If you own a property here are a few options:

  • Sell this property

    • This is the decision most folks leaving an authoritarian country are taking (Canada, France, Germany, Netherlands, …). The folks leaving these places usually do not think of coming back. It then makes sense to sell your property. We have seen folks moving without selling and then managing to sell their property remotely or having to fly back to sell the property.

    • If most of your net worth is inside your flat or your house and you will need this money to build your life at the place you are heading to then it makes sense to sell it. By building your life we mean buying a new home, buying a piece of land, paying for kids’ schools, starting a business

    • It may be harder to sell when the real estate market isn’t good. You may want to reduce your asking price. Imagine you want to sell at EUR 450,000. There is no demand at this price. Should you try to sell at EUR 380,000 (below market price) or run the risk of not being able to sell for the next 3 to 4 years because of the context (economic collapse, tougher regulations, …)? I understand that it is hard to take a loss or no gain but it may turn out to be an excellent decision in a few years time.

  • Rent your property

    • If you do not need to sell this property to get cash or you just cannot sell it because there is no buyer at the price you want to sell it then renting could be an option. You do need to consider the state of the rental market and who you rent it to. Imagine you rent to someone who defaults after a few months and does not want to get out of your property. That could be a big issue. If you need to deal with this and at the same time you need to work on your local integration that will not work well.

  • Transfer the property to another family member

    Is this an option?

  • Let the property vacant

    We would not advise doing so because it can be occupied at some point if People realize that no one is living there. In a context of economic struggle in Western countries and regulations that are more and more friendly to those who occupy houses, you could be running a risk.

  • Come back to this property a number of times per year. It could be that you have no financial constraints to sell this property and would like to keep it for now.

If your move is a structural move in your life and you do not plan to come back to live there then i would recommend to sell. You will feel way better not having to deal with this property, especially if it is far away from the place you are moving to.

What do i acquire at the location where i move to?

A large number of the People we talked to are renting at their arrival destination. It’s aligned with a flexible mindset. It’s aligned with the principle of keeping your options open. Resist the FOMO (Fear Of Missing Out) related to house prices climbing at your new location. For instance, if you move to Costa Rica you could be tempted to buy right away given that house prices are increasing. It may be a mistake as you will usually lack key information and overpay your house/flat or not pick the best location. If you are really in a hurry, rent for the short term and spend a significant amount of time researching a house/flat.

Avoid locking yourself in a long-term rental agreement without being confident that this is the area or neighborhood where you want to stay.

What if i really want to buy before arriving?

If this is really what you want, no one will prevent you. Pay attention to the following:

  • Go through a trustworthy lawyer. Someone who has been recommended to you by People you trust

  • Disregard assets that are being hyped. Very likely a scam

  • Do not send any money first. Not even a deposit. Some folks will ask you to send money before the purchase process start or to reserve the house/flat. That’s a no.

  • Use an escrow account to manage the transaction. The money will only be released once you have the papers.

The cost of moving

Assuming you are paying for your move, you need to budget it. Here is a list of costs you may need to factor in:

  • House/flat, land purchase if you are going for a golden visa

  • Company investment if you are going for an investor visa

  • Donation if you are going for a donation visa

  • Transportation (plane, boat, train, van, car, …)

  • Travel Insurance

  • Medical insurance (often needed to enter the country)

  • House or apartment rental where you move + initial deposit if any

    Think about short-term rental options like Airbnb or Booking.com

  • Relocation company (you pay a company to help you to relocate)

  • Relocation agent (you pay one person to help you to relocate)

  • Visa

  • Terminating utility contracts where you live

  • Opening utility contracts where you move to

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