How to Start Investing in Foreign Property? A 5-Step Guide for First-Time Buyers

Many people believe that investing in foreign property is complex, risky and exclusively the privilege of the ultra-wealthy. The reality is different: with the right preparation and expert support, the entire process is structured, transparent and entirely manageable.

Step 1: Define Your Goal

Before looking at a single property listing, answer three questions:

• - **Yield or capital preservation?** If you're seeking passive income, rental yield will be your primary metric. If capital preservation is the goal, market stability and liquidity come to the fore.Yield or capital preservation? If you're seeking passive income, rental yield will be your primary metric. If capital preservation is the goal, market stability and liquidity come to the fore.
• - **What is your time horizon?** A 3–5 year exit strategy calls for a different market and property type than a 10–15 year hold.What is your time horizon? A 3–5 year exit strategy calls for a different market and property type than a 10–15 year hold.
• - **How much involvement are you willing to take on?** Do you need to actively manage the property, or is full property management required?How much involvement are you willing to take on? Do you need to actively manage the property, or is full property management required?

Step 2: Choose Your Market

Three key parameters are worth examining: legal stability (property rights protection, foreign ownership restrictions), yield potential (rental market, currency risk, tax environment) and liquidity (how easily can the property be sold at exit?).

Arqoon Group specialises in three markets — Dubai, Spain, Budapest — where we see a strong buying position in 2025 based on analysis of all three parameters.

Step 3: Due Diligence — Don't Skip It

For foreign property, due diligence is not optional:

• - Title deed review (encumbrances, mortgage registrations)Title deed review (encumbrances, mortgage registrations)
• - Building permits and compliance certificatesBuilding permits and compliance certificates
• - Tenancy agreement review if the property is currently letTenancy agreement review if the property is currently let
• - Engagement of independent local legal counsel (the developer's lawyer is not sufficient)Engagement of independent local legal counsel (the developer's lawyer is not sufficient)

Step 4: Financing

Foreign property purchases don't have to be cash-funded. Several options are available:

• - **Local mortgage:** available to foreign buyers in Dubai, Spain and Hungary, typically at 50–70% LTV.Local mortgage: available to foreign buyers in Dubai, Spain and Hungary, typically at 50–70% LTV.
• - **Refinancing in your home country:** a loan secured against existing property to finance the foreign purchase.Refinancing in your home country: a loan secured against existing property to finance the foreign purchase.
• - **Developer payment plan:** for off-plan projects, typically 20–30% deposit with the balance paid in instalments through to handover.Developer payment plan: for off-plan projects, typically 20–30% deposit with the balance paid in instalments through to handover.

Step 5: Property Management

The investment doesn't end at handover. Plan ahead: who will manage the property in your absence? A reliable local property management company means security and stable income, while a poor decision can create serious problems.

Arqoon Group has trusted property management partners in all three of its markets, providing a full service from handover through to rental income transfer.