Tommy Sikes, a certified financial planner, began researching properties in Europe as a retirement option for him and his wife. He started sharing these properties online and found a new base of clients interested in owning property abroad. Sikes sends properties to 25,000 followers and subscribers through various platforms. He warns against buying property abroad on a whim and emphasizes the need for financial planning before making such a decision.
Sikes recommends three steps to take before buying a property abroad. Firstly, he advises taking stock of your financial situation to understand what retirement in another country would look like. Secondly, he emphasizes the importance of understanding the homebuying process in the country of interest. Lastly, he suggests ‘taking a test drive’ by renting a property in the desired location to see if it matches your expectations and lifestyle.
Sikes highlights the financial appeal of retiring abroad, where the cost of living can be significantly lower than in the US. He mentions the importance of understanding tax treaties and retirement account regulations in the country of choice. He encourages individuals to work with tax professionals to navigate these financial aspects thoroughly. Sikes helps his clients understand these financial implications and guides them in making informed decisions.
While buying property in countries like Italy and France is relatively straightforward for Americans, Sikes advises potential buyers to be prepared for the homebuying process. He mentions the necessity of paying in cash and the importance of partnering with a planner who specializes in international property transactions. Sikes warns buyers about potential challenges, such as language barriers and bureaucratic delays, when purchasing property abroad.
To avoid potential pitfalls, Sikes recommends renting a property in the desired location for a period of time before making a purchase. This allows individuals to experience the lifestyle firsthand and evaluate whether it meets their expectations. Sikes also suggests hiring a local proxy to assist in property searches and negotiations, especially if buyers are not able to visit the location frequently. He stresses the importance of being confident in the chosen location to ensure long-term satisfaction with the property purchase.
Overall, Sikes provides valuable insights and guidance for individuals considering buying property abroad. By focusing on financial planning, understanding the homebuying process, and ‘test driving’ potential locations, buyers can make informed decisions and avoid common pitfalls associated with international property purchases. Sikes’s expertise and experience in this field offer a comprehensive roadmap for those seeking a retirement or investment property in Europe. His practical advice underscores the importance of thorough research and planning before taking the plunge into international real estate ownership.
