Buying property abroad can be a risk, but not because you are entering a real estate market and legal jurisdiction. However, at the same time, there is also a tendency to misunderstand or exaggerate the exact nature of those risks. So, people who are seriously considering a second property overseas should know that there are some myths that they have to ignore.
Common Misconceptions of Buying Property Abroad
Most of these misconceptions are due to oversimplification. While there may be a little bit of truth, generalizing them can be a mistake. These myths can misdirect you from the real risks. Here are some of the common myths that are not often true in most cases, and not everyone should be afraid of them.
Myth 01: There Is No Need to Appoint Your Own Lawyer
Wherever you buy a property, in your hometown or abroad, make sure you hire an independent local lawyer. It will help you to protect your interests and guide you through the various stages of the buying process. This rule stands in countries that use a notarial system for property transactions.
Notaries represent a state and ensure that the correct paperwork and processes are fulfilled. They are not paid to safeguard the vendor’s or buyer’s interest, as an independent lawyer would be. When you have a local lawyer, you have the option of granting them power of attorney. It can be specifically useful as a non-resident.
Myth 02: A Cheap Property Is a Bargain
Brian Bosscher, owner and founder of Condo Control, says, “People often believe that if a property is offered to you at a rate that appears to be below the market value, there is a reason. Be especially cautious of this with off-plan. Find out what has impacted the asking price and what is driving the sale.
A search by your lawyer should reveal any concerns, including any issues with the title of the property. It will build a regulatory and planning status. Make sure you have an exit strategy if you have to offload the property immediately. Consider whether it would sell easily.”
Myth 03: Rental Guarantees are Always Honoured
“Off-plan and new-build opportunities are always honored with guaranteed rental income for a particular number of years. These may be two to five years. Find out how the vendor or developer will be able to service these promised payments. Also, get to know if they have rental agreements in place. At the very least, ask your lawyer to check that a rental guarantee scheme is underwritten safely by an insurer or a banker.” Thomas Eriksen, Co-Founder and CEO of Forsikringssiden.no
Moreover, do research of the local rental market and explore how able to be rented the property will be once the guarantee period ends. There may be chances that you are left with something that no one wants to rent.
Myth 04: You Do Not Need to Visit the Property Before the Purchase
Real-time messaging, like Skype, and digital photography are helpful. However, they should not be an alternative to visiting the site of development or the property in person. Check the build quality, neighbouring properties, state of the land, any proposed or existing infrastructure, views, transport links, and proximity to amenities.
It will all allow you to evaluate the true value of an investment. There might also be a chance of discovering something that is not shown on the website or in the brochure, which triggers the alarm bell.
Myth 05: Cash and a Handshake: A Still-Accepted Practice
Payments, like deposits, made to a developer or an agent on a verbal agreement and without any formal contract are definitely a No.
You should not take the risk of operating outside the local legal framework. Likewise, making payments in cash and with no receipt or proof is equally risky. It will leave you exposed to no comeback if there is any chance of a deal collapsing.
Myth 06: All Foreign Developers Are Unreliable
“Usually, these types of worries circulate around small local developers. They usually do not have a portfolio. For instance, they may be an investment company that suddenly decides to dabble in real estate. These kinds of developers want to interact with foreign buyers, usually because their property investors, local banks, etc., know better.
However, reputable real estate developers will invariably possess a large portfolio. Their portfolio will also be quite easy to check up on. Moreover, the listed developers will also publish their financial statements. That is why it is easy to spot problems related to liabilities. If you are uncertain, consult with a qualified wealth manager to help you review the statements.” John Gill, Operations Director at Easy Concrete Supply
Myth 07: Complicated Buying Process and Taxes
“It is often believed that buying property overseas is a complicated process. It is also believed that the whole procedure involves too much paperwork and too many middlemen. Similarly, buyers usually worry about taxes and the accounting work they create.
In established countries, these problems are no longer as prevalent as they were before. Thanks to the advancement of digital real estate, it is quite easy to contact professionals abroad, compare prices, or even directly contact the relevant government bodies. There are many reliable websites online that provide most of the resources required. It is even possible to handle all the paperwork digitally, in a few jurisdictions.” Daniel Cabrera, Owner and Founder of Sell My House Fast SA TX
The Hidden Value of Project Management in International Property Deals
“When investing in property abroad—especially off-plan or under-construction developments—project management becomes a critical component of success. Overseas investors often underestimate the value of having a dedicated project manager or team to oversee timelines, contractors, compliance, and quality assurance.
A qualified project manager acts as your representative on the ground. They coordinate with architects, engineers, lawyers, and local authorities to ensure the development aligns with legal standards, building codes, and agreed timelines. They also conduct regular site visits, document progress, and manage any delays or cost escalations that could impact your investment.
For investors who cannot frequently travel to the property site, hiring a bilingual project manager with local expertise can bridge cultural and communication gaps. They can ensure that documentation is in order, local labor laws are followed, and key milestones are met. Adds, Te Wu, CEO of PMO Advisory & Associate Professor of Montclair State University
Myth 08: Exchange Rate Complications
A common fear people usually feel is loss due to currency exchange rates. This can be a risk and must be managed by selling your overseas property at the right time. Investors must be well capitalized so they are not forced to sell the property at a time when exchange rates are low.
You can also make it a point to sell the property in the currency of the relevant country. It will help you in preventing any losses from an untimely transition in exchange rates. At any rate, these days it is easier to open a multi-currency account. In this way, you do not need to convert the money until prices become favourable to you. Exchange rates can be a serious issue. However, in politically unstable countries, investments in some areas are best avoided by the inexperienced. Through this, you can save yourself from the risk.
Managing a Property Abroad Is a Nightmare
This very common concern used to carry more weight, but times have now changed. Today, managing a property overseas is more streamlined than ever. All thanks to advancements in proptech, professional services, and global connectivity, people can easily manage their property from anywhere in the world.
“Modern investors can use different digital property management platforms. These platforms allow them to monitor everything from maintenance requests to rent collection in real-time. Smart locks, IoT monitoring, remote security systems, and virtual property tours provide control and transparency regardless of location.
Moreover, reliable local property management companies can manage daily operations, compliance, and tenant communications. In this way, you have complete peace of mind. With the right setup, you can handle an overseas property as easily as managing one at home,” highlights Vicky Cano, Chef & Recipe developer at mealfan
Conclusion
Investing in real estate is not only for institutional or ultra-wealthy players. It is about market knowledge, right partnerships, and most importantly, the strategy. If you have done these things correctly, it can be a strong wealth-building tool. Moreover, it is also a great way to diversify against local economic fluctuations.
