With our increasingly global economy, it is more and more common for many professionals to spend part of their careers overseas. Some will travel back and forth as they conduct business, while others may have to settle into a new country for quite some time, possibly even permanently. This presents a number of challenges, amongst which is obtaining home loans for those who will be living overseas.

Even though the basic concept of a mortgage is fairly universal, every country has different laws and regulations regarding buying and owning property. Before buying property overseas, buyers should take the time to become thoroughly aware of the legal implications that home ownership has in the country they are moving to. It is often quite different than in the United States.

Think of it kind of like the property deals that took place in the early history of our own country. European settlers, who were familiar with one concept of land ownership, bought the rights to land use from Native Americans who, in many cases, didn’t even subscribe to the idea that land could be owned. One group thought they were selling the rights to Europeans to hunt and build homes without being scalped. The other figured it was time for the natives to move.

While most overseas property deals will not result in misunderstandings of that magnitude, it’s nevertheless a good idea to know what you’re getting into. Among other things, here are some things you should look into:

• Property taxes. How much is the government of your new country going to charge you for living in your home? Even in the US, this can vary widely from community to community. Take the time to understand how much you’ll need to pay in taxes, and how you go about paying them.

• What does ownership entail? Basically, what rights does owning the property offer you? In some countries, there are limits on the rights of homeowners if you’re not actually a citizen of the country, so do your homework. This is especially important if you’re buying land in certain South American countries.

If you’re going to be working overseas, buying a home there often makes sense. It saves you from throwing your money away on renting and can, in many cases, be a good investment.

One last thing you need to consider is building a credit history in that country because usually it’s necessary before you can obtain home loans there. American banks are often hesitant to loan money for foreign property and credit histories often don’t translate from one country to the next.

Photo via JoopDorresteijn