Working With Global Retirees

Across the world, buyers may purchase properties in other countries with an eye to retirement. Many CIPS designees mistakenly believe they can’t tap this market segment for two popular reasons. Either they believe they must be located in a popular retirement destination, or think they need to build an ongoing “conduit” of business (e.g., introducing buyers to a particular developer of retirement properties).

The truth is, any CIPS designee can cultivate overseas retirement opportunities in global markets. A solid framework can help you tap into this niche. Here are three key steps and numerous related resources that can yield excellent results.

Step 1. Have the discussion.

Overseas retirement is a popular topic that piqued many peoples’ interests. Maybe they’re drawn to the idea of enjoying a year-round tropical climate. Perhaps they’re concerned about their retirement budget, and imagine they’re enjoying a better standard of living in another country.

Regardless of the reasons, there’s a good chance people are open to engaging in a dialogue about overseas retirement IF YOU ASK. There are several different ways to approach it, including one-on-one messages and conversations, in addition to broader marketing efforts (an emailed newsletter, a personalized postal letter, in your social media posts, etc.).

In your messages, touch upon some of the most important and popular topics, including:

• Is it affordable?
• How difficult is it to become a legal resident?
• What about healthcare?
• Will clients be able to form new friendships?

At this point, your goal is simply initiating a conversation and building rapport. Learn more about their interests, their concerns, and their questions. Don’t present yourself as a retirement expert, but do learn enough to answer basic questions.

Give clients a copy of the consumer handout on page seven, which introduces many more topics to consider. Then, offer to follow up on any open items. This way, clients associate you as a key resource to overseas retirement.

Lastly, make sure you know where to turn for any specific questions outside your personal expertise during this process. (“I don’t know the answer to that, but I could put you in touch with an expert.”)

Step 2. Do your research

Anyone who is seriously considering retirement in another country should have MANY questions! Don’t attempt to provide answers beyond your expertise, but DO be sufficiently informed that you can point clients in the right direction. Several of the most important questions include:

Does the country welcome foreign residents?

Some countries are quite welcoming, even offering incentives to encourage retirees to put down roots (and contribute to the local economy). For example, Panama’s Pensionado (Retired) Visa2 is open to foreign residents and offers substantial discounts (15 to 50 percent) on entertainment, travel, energy bills and much more. Foreign residents who qualify for the program also enjoy a one-time exemption from import duties on household goods (up to $10,000) and tax exemptions every two years to import a car.

The U.S. Department of State is one of the best places to begin online research, regardless of your base of operations. Its Travel.State.Gov website includes information on obtaining U.S. visas, as well as an excellent compilation of resources for travel outside the U.S.

In most cases, obtaining a retirement visa involves demonstrating adequate funds, a health check, and a criminal background check. Many travel agents offer visa services, but for long-term residency, your clients should consider working with an immigration attorney. In either case, it’s a good idea to research visa options and related government fees independently (usually an easy search on an agency website).

Also keep in mind that it’s relatively easy for a citizen in the multi-country organization, such as the European Union or Association of Southeast Asian Nations, to establish residency in another member country.

Similarly, citizens of a country can easily retire to overseas territories (e.g., a British citizen moving to Gibraltar or the British Virgin Islands, or a U.S. citizen to American Samoa, the U.S. Virgin Islands, or Puerto Rico).

What is the cost of living?

People are often drawn to an overseas destination because they can enjoy an excellent lifestyle at a more affordable price. In many cases, this is true. However, the actual cost of living depends on many factors, including where and how you want to live. It’s easy to get rough comparisons, using the resources noted below, but encourage clients to pull together a more complete and accurate budget that also considers tax implications.

Will I be able to find and afford quality healthcare?

This is one of the most important items to include in a retirement budget. For U.S. citizens, note that Medicare and most private U.S. healthcare insurance does not extend to other countries.

It’s also important to consider the healthcare and affordability offered by each country. If public healthcare is offered, investigate whether it extends to foreign residents and budget accordingly. Additionally, it may be essential to factor in travel to another country which may be necessary in order to obtain skilled assistance, beyond routine medical matters.

When it’s clear that your client is focused on a particular destination, offer to introduce them to an agent in that market. Tell them you’re “a Certified International Property Specialist with access to a global network of the most qualified real estate professionals around the world.” Also mention the CIPS directory, with nearly 4,000 designees in 48 countries

Step 3. Use your resources.

It’s important to do your research, but at some point in assisting a client, it will become essential to turn to the CIPS network. Every country has their own real estate licensing practices. There are simply too many important nuances from one market to another—plus significant legal, tax and financial details that must be answered by local market experts. These designees can also help find local attorneys and other necessary professionals.

Work the CIPS network to find a designee in the location of interest who can assist. Ask about anything that’s important to your clients, including:

• What is the agent’s experience working with other foreign nationals?
• Have a specific question regarding properties in a particular country
• Can they converse in your client's preferred language?
• Can they offer solid recommendations on immigration attorneys, tax specialists, etc.?
• There are many different ways to tap into the CIPS network. You can reach out to other CIPS designees directly, via joining the closed Facebook group or by using the CIPS directory. To obtain answers to countryspecific questions, you may also want to turn to pertinent Cooperating Associations. See below for details.

Be sure to use a referral agreement, to help solidify your referral opportunities. NAR has prepared a special form for CIPS designees, which you can modify to your own specifications. See below.

Finally, stay involved in your clients’ progress. Hopefully they’re making multiple trips to explore their second home before solidifying a purchase decision. Make note of their travel dates, and follow up with a call, to inquire about their most recent trip. (This is also an excellent time to check in with the referral agent.)

Staying involved also puts you in the perfect position to handle your clients’ local real estate needs, which will very likely include the sale of their current home. When discussing this possibility, remind them that, as a Certified International Property Specialist, you are also able to market their property to the world through the CIPS network. It’s another way to leverage the power of the CIPS network and win new listings!