Many people move abroad financially established home-owners. Normally you are used to owning your own home so if you migrate abroad the instinct is to quickly buy your own piece of your new country. This may not be the most sensible move, however. migrating overseas can be a big step forward financially but think about your property purchases carefully.
Reasons Not to Buy Immediately
You don’t know that you will stay. Not every immigrant stays in their new country. Sometimes migrants return home within a year or two. Renting is your best option unitl you know you are staying permanently. If you sell in your home country and buy in your new country and then have to sell again – you will probably lose significant amounts in fees and commissions even if the property prices have remained stable or increased.
You don’t know the property market. Your unspoken assumptions put you in a weak negotiating position. For example an Australian wouldn’t buy a family home in many parts of a Australia that did not provide a shaded outdoor entertainment area. An immigrant from a cooler climate may not see the problem with a north-facing exposed courtyard until they have moved in.
You may change city, suburb or state. Its so much easier to move if you haven't purchased a house. You may rent initially in your desired area only to change your mind 6 months down that track buy in a different area.
Renting initially also means that you may not have to buy all the appliances and furniture you didn’t bring with you. Renting a semi-furnished home initially can be a good way of spreading the set-up costs involved with yourmove overseas.
Depending on your visa type you may not be allowed to buy all types of residential property. Waiting until you have permanent resdiency will increase your property buying options
Renting for 6 or 12 months will give you time to establish a credit history in your new home which will make it much easier to finance a property purchase
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