Buying property abroad: non-price factors to consider.

When it comes to buying property abroad, the cost is usually the primary concern. However, many other important factors exist, from legal guarantees to tax burdens and payment terms. We compared five popular destinations—Chile, Bali, Dubai, Georgia, and Turkey—based on criteria that can significantly impact the decision, especially in the long term.

• Ownership Rights

The ability to register property as your own is not always straightforward. In Dubai, Georgia, and Turkey, foreigners receive full ownership rights. In Chile, this process is also transparent and protected by law. However, in Bali, real estate can only be registered under a long-term lease scheme, which limits the buyer’s rights and requires additional legal solutions.

• Inflation Rate

A stable economic situation is key to preserving investments. In all countries except Turkey, the inflation rate remains relatively low. Despite its popularity, Turkey has faced currency volatility and rising prices in recent years, which should be considered when planning investments.

• Payment Terms During Construction

The initial down payment during construction can vary. In some countries, such as Chile, it is around 10–15%, allowing you to enter the project with a minimum amount. In other regions, including Bali, Dubai, Georgia, and Turkey, initial investments are generally higher, from 20 to 30%.

• Payment Plans

Flexible payment schedules are standard for most markets: monthly or quarterly installments are available in Dubai, Turkey, Georgia, and Bali.

There is also another approach: in some countries (e.g., Chile), you can make a down payment and not pay the rest until the construction is completed. This can be a convenient option for those who want to maintain the liquidity of funds during construction.

• Ability to Exit the Project Before Completion

If you plan to resell the property before construction is completed, it is important to understand how much money will already be invested by that point. In Dubai, Georgia, Turkey, and Bali, 50–80% of the cost is typically paid by the time of resale.

In Chile, a different approach is possible: you can resell the property at any stage, even before construction is completed. In this case, only a down payment of 10–15% of the cost is required at the start.

This makes the strategy particularly attractive to investors: with minimal initial investments, you can secure the property at a low price and earn from the increase in value during construction.

• Protection Against Unfinished Construction

Risks during construction are another sensitive issue. In Dubai, Bali, Georgia, and Turkey, there is no insurance for the property during construction, and the buyer agrees to the risks.

In certain jurisdictions (e.g., Chile), the developer is legally required to insure the property, which alleviates some concern.

• Taxes and Fees on Purchase

Registration costs also vary. High fees apply in Turkey and Dubai (4–5% of the property value). The same goes for Bali. In Georgia, the registration fee is minimal, around $100.

There are countries where taxation is particularly favorable: for example, in Chile, there are no taxes when buying a property under construction, and when buying a completed home, it’s only 0.2% of the cadastral value, which is 2 times lower than the market value.

• Conclusion

Each destination has its strengths: some have higher legal protection, others have convenient payment schemes or low tax burdens. It is important to assess the totality of factors - not only the price and location, but also the security of the transaction, the flexibility of the conditions and the economic stability.

Some markets offer well-balanced conditions for investment, especially if you are looking for a calm, legally transparent format with a moderate entry threshold for the deal.