The Covid-19 pandemic that hit the planet in 2020 practically shut down the world for months on end, bringing about devastation for economic markets all over the globe. General advice suggested keeping off investing until the situation got better and markets had time to recover. Now the United Kingdom is coming back up the slope, after a very rough year. We are going to have a look at how the pandemic affected the international housing market and what to look out for in the future should you wish to buy a property abroad. We’ll also have a look at how document legalisation ties into the process.
Overall, the housing market saw a significant drop all over the world during 2020, with the exception of a few countries in which rates rose by a noticeable amount. These spikes have made the market relatively unstable. Different lockdown restrictions, sometimes going on for months at a time, meant fewer enquiries from overseas buyers and fewer transactions overall due to lack of travel ability. Now that most parts of the world have rolled out vaccines, it seems this dark period is coming to an end. Slowly but surely, and the market may finally bounce back. As it does, we may need some pointers to navigate the new global housing market.
Preparing for the Sale
The first thing to keep in mind, and arguably the most important of all, is to monitor housing prices. With the unprecedented market fluctuations, keeping an eye on exchange rates is the most advisable thing to do in order to get the most bang for your buck. Don’t overpay for your house abroad simply because you picked the wrong day to invest.
Another very important thing to keep in mind is to have your documents in order. The most common documents required for selling or buying a house abroad are a Power of Attorney, a proof of income and a proof of identity. This is where document legalisation comes in.
- A Power of Attorney is a certified document appointing someone else to act on your behalf in legal matters. This could be anyone you truly trust: a friend, a relative, or a solicitor in the receiving country. POAs are especially important since, due to travel restrictions, you may not be able to travel to the appointments that come with the property-buying process.
- A proof of income is a very standard document to show that you have the money to buy the property. It may be a variety of documents, including bank statements or a P60 form.
- A proof of identity is a document that displays your name, date of birth and photo. It can be an ID card, a driver’s licence, or a photocopy of your passport open on the photo page.
You also may need to provide additional documents at the discretion of the seller. These are the most standard documents to begin preparing.
Document Legalisation
The documents you will use in the buying process will most likely all need to be legalised, The standard procedure for document legalisation is to get your documents certified by either a solicitor or a notary public, then submit it to the Foreign, Commonwealth and Development Office for them to legalise it by affixing an apostille. As discussed in our article on embassy attestation, document legalisation can get a bit more complicated depending on the country of use.
If you need assistance with document legalisation, please do not hesitate to get in touch.