Mistakes to Avoid When Buying a New Build Abroad

The most common mistakes are paying before independent due diligence, trusting brochure yields, ignoring total costs, skipping a lawyer, misjudging financing and buying for a visa that may not exist. Each is avoidable with a few weeks of patience and a short checklist.

1. Paying before the lawyer has checked

A reservation deposit feels harmless and creates momentum. Once you have paid, walking away feels like a loss, even when new facts appear. Keep the first payment small and ideally refundable until your lawyer has confirmed title, permits and the draft contract. Our step-by-step guide puts due diligence before the main payments for this reason.

2. Using the developer’s lawyer

A lawyer provided by the seller acts for the seller. Hire your own, in the country where the property sits, and be clear about the scope: title, permits, contract, taxes and registration. See contract clauses to check for what to ask them to look at.

3. Believing brochure yields

Brochures quote gross yields and capital growth with no source. Pages on Off Plan Properties, for instance, quote ranges for different countries and, in one case, give two different appreciation figures on the same page, which should remind any reader to calculate independently. Use the rental yield calculator with your own costs, and see how to calculate rental yield.

Key takeaway: a promise of a return is a sales claim. A cost you can document is a fact. Base the decision on facts.

4. Ignoring the total cost

Purchase taxes, notary and registry fees, currency costs, fit-out and ongoing charges add to the headline price. Buyers who compare only list prices often pick the wrong market. Build the worksheet in our hidden costs article before you shortlist.

5. Skipping developer due diligence

A glossy showroom is not a track record. Check the legal entity, land title, permits, completed projects and delivery history. The vetting checklist lists the evidence to request.

6. Assuming financing will be easy

Lenders may not lend to non-residents, may lend only a part of the value, and usually fund at completion. Signing a binding contract before a lender confirms terms can leave you with a purchase you cannot complete. Read mortgages for non-residents before you reserve.

Mistake summary table

Mistake	Typical consequence	Prevention
Paying early	Lost deposit	Refundable reservation, lawyer first
Seller’s lawyer	Missed risks	Independent lawyer
Brochure yield	Disappointing income	Own calculation
Ignoring costs	Over budget	Itemised estimate
No developer checks	Delay or failure	Vetting checklist
Financing assumptions	Unable to complete	Written lender terms
Visa-led buying	Wrong asset, no visa	Check official rules
Remote decisions	Poor location choice	Visit, ask owners

7. Buying for a visa that may not exist

Residency schemes tied to property have been closed or reshaped in several countries. Do not rely on marketing statements, and verify with official sources; our article on property investment residency visas explains the checks.

8. Underestimating delays

Off-plan projects can finish late. The catalogue’s own comparison guide says that 20 to 30 percent of projects reportedly finish 3 to 12 months late, a figure it does not source. Plan for slippage: keep cash buffers, avoid selling your current home before the delivery date is secure and make sure the contract gives a remedy for lateness. The trade-offs between buying finished and unfinished homes are explored in off-plan vs completed property abroad.

9. Not visiting, or visiting only once

A single trip in good weather shows you a curated version of the area. Return in the off-season, walk the neighbourhood at different times, visit the site and speak to residents of nearby developments. If you cannot visit, ask your lawyer or an independent surveyor to report back with photographs and notes.

10. Letting emotion override the numbers

The easiest way to lose money is to fall in love with a show apartment. Write your criteria before you start: budget, location, completion date, minimum net yield or personal use. Reject any project that fails the criteria, however attractive. If a salesperson says a price is valid only today, remember that a good project will usually still be there after a week of checks.

A one-page pre-payment checklist

1. Independent lawyer engaged and has reviewed title, permits and contract.
2. Developer vetted and a finished project visited.
3. Written all-in cost estimate.
4. Deposit protection document seen and understood.
5. Financing confirmed in writing, or cash ready.
6. Any residency claim verified with official sources.
7. Exit plan if delivery slips or prices fall.

If you cannot tick every item, wait. To see real projects while you do your homework, use the Off Plan Properties listings as a catalogue, and apply this list to each one.

Sources and caveats

This is general information, not legal, tax or investment advice. Rules and practice differ by country and change, so confirm with qualified local advisers.

When something has already gone wrong

If you have paid money and now have doubts, do not panic and do not pay more. Collect the contract, receipts, messages and brochures. Ask an independent local lawyer to read them promptly, and ask three specific questions: what protection covers the money paid, what rights exist to cancel and what deadlines apply. Some cancellation rights expire after a short period, so speed matters. Write to the developer through your lawyer rather than by informal message, so there is a clear record.

If the developer is delayed rather than failing, ask for a written revised timetable and a reaffirmation of any guarantee. Where the contract gives compensation for delay, claim it formally. Keep paying only what the contract requires and only to the account named in it. For help understanding what escrow and insurance should be doing, see deposit protection abroad, and for the Off Plan Properties view on contractual protection read its guide to pre-construction contract clauses.