I am slowly looking into purchasing property overseas and hence am faced with the decision on where to source finance.
I know here in Austalia alot of banks will not finance international property purchases due to the risk.
Then looking offshore you have an option of obtaining finance in a number of differant currencies, each attracting a differant interest rate.
Regardless I know you will need at least 20% – 30% deposit when you are a non resident or sourcing finance locally for an international purchase.
Now without me going into an analysis of interest rates Vs currency fluctuations etc I was wondering if I could hear from a few poeple who have had expirence or knowledge in sourcing finance for international purchases and things they would suggest to look out for or just general advice.
SebastianXeniaMember@xeniaJoin Date: 2002Post Count: 1,231
At the moment I am looking at Poland. But I am not necessarily limiting myself to this country.TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
I am currently in Japan, looking at the situation here. I think it will be very difficult to get finance here unless you are working here. I imagine this would be similar in most countries. The lenders will want to know how you can fund the loan if you can’t get tenants. Not having income in the same country as the loan will seem risky to them.
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Banks in Poland for example do offer loan products to foreigners who need to meet tighter conditions to satisfy the banks. One of which is a minimum of 20% – 30% deposit.
I have a friend in Poland at the moment who I’ve asked to check these conditions out for me, but he is dragging his feet somewhat. I think I’ll try to communicate direct with the bank.
I also stumbled upon an American in Poland who is a buyers advocate for foreigners, however his fees are much more then what I’m willing to pay.
Places I’m looking at are around $80K AUD and are positive. So repayments are not when not rented out. One thing I have not got my head around is what currency to borrow in??Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
I have just completed a loan for a client in Crotia under a foreign nationals loan although the interest rate was slighly higher at 7.29%.
Loans in Poland are readily available for the purchase of Polish property. There is a minimum amount although this may vary from lender to lender and according to location. With Fortis Bank the minimum loan is 35000 Polish zlotys outside Warsaw and 50000 zlotys inside Warsaw.
Generally non residents can borrow upto 70% and rates of interest are offered in either USD$ or the local currency.
Hope this helps a little.
IP funding and US property finance