Buying and owning prime and super-prime property

At a glance

• Who it is for: buyers of prime and super-prime residential property, at home or abroad.
• The three things that matter most: local legal advice on title, planning and purchase taxes in the country concerned; thorough surveys; and an ownership structure decided before you commit.

Understanding the market

• Segments: prime city homes; country and trophy estates; coastal and resort homes; branded residences; new-build developments.
• Value drivers: location and micro-location; scarcity; architecture and heritage; land and views; privacy and security; condition and specification; planning potential.
• A meaningful share of the prime market trades off-market; published indices smooth volatility.
• Rules on foreign ownership, purchase taxes and residence vary widely and can change quickly.

Ways to own

• Freehold or equivalent outright ownership.
• Leasehold — check the remaining term, ground rent and service charge terms.
• Branded residences — hotel-style services with brand standards and fees.
• Fractional or shared ownership schemes and residence clubs.
• New-build off-plan purchases with staged payments.

Where and how to buy

• Buying agents acting only for you (search agents); selling agents act for the seller.
• Off-market introductions via agents, private banks and family offices.
• Auctions and tenders in some markets.
• Developers for new builds; check deposit protection and completion guarantees.

Due diligence and authenticity

• Title, boundaries, rights of way, easements, restrictive covenants and any charges.
• Planning and building permissions; listed or heritage status and the restrictions it brings.
• Structural, environmental (flood, subsidence, contamination) and building surveys.
• Service charges, ground rents and management for apartments and branded residences.
• Developer standing, build quality and warranties for new builds.
• Local foreign-ownership restrictions and approvals.
• Anti-money-laundering checks by agents, lawyers and notaries.

Costs of acquisition and ownership

• One-off: purchase taxes or stamp duties (which in some jurisdictions include surcharges for non-residents or additional homes); legal and notary fees; surveys; agents' fees; finance arrangement fees; furnishing.
• Recurring: property taxes; service charges; insurance; staff and estate management; maintenance; utilities and security.
• Exit: agents' fees; possible tax on disposal; legal costs.

Structure, tax and regulation — topics to raise with your advisers

• Personal versus corporate or trust ownership, and any annual taxes or reporting that apply to property held in structures.
• Purchase taxes and surcharges; annual property and wealth taxes; rental income tax; tax on disposal.
• Inheritance and succession rules in the country where the property is located, which may differ from your home jurisdiction (including forced-heirship regimes).
• Residence or visa implications, if any, of owning property in a given country.
• Beneficial-ownership registers for property owned through entities.

Insurance, storage and security

• High-value home insurance covering buildings, contents, art and liability; check unoccupancy conditions.
• Security systems, staff vetting and privacy measures.

Care and maintenance

• Planned maintenance, especially for historic buildings with consent requirements.
• Estate managers for large or multiple properties.

Using and enjoying

• Letting: licensing and local rules on short-term lets can be restrictive.

Selling and exit

• Discreet off-market sale versus open marketing.
• Timing and preparation; a complete legal pack shortens transactions.

Red flags

• Pressure to commit before surveys or legal searches.
• Unregistered or unclear title.
• Developers without completion guarantees or with poor track records.
• Requests to pay deposits to accounts not held by regulated lawyers or notaries.

Questions to ask your advisers

1. Which ownership structure suits my situation in this country and at home?
2. What taxes arise on purchase, ownership, letting, sale and death?
3. Are there restrictions on foreign buyers?

Glossary

Exchange of contracts

the point at which a property purchase becomes legally binding in some jurisdictions

Off-market

property sold without public marketing

Branded residence

a home developed or managed under a hotel or luxury brand

Forced heirship

rules reserving parts of an estate for certain heirs

Specialists you may need