As the US and UK real estate markets stay at a stand still, many are buying investment properties outside of their own country. And why not? The option to purchase real estate properties in foreign countries has great potentially as many of them are looking at positive growth, which we cannot say for the US and UK property market at the moment. But acquiring overseas mortgages is not just as easy as simply looking for the best interest rate. In fact, it involves getting into the nittie–gritties of finding the most suitable place at a country that offers the most potential as well as looking at your personal resources to check if you can afford such an investment.
Unless you are filthy rich, buying overseas real estate whether for a holiday or retirement home involves financing. There are four primary routes you can take towards getting your financing for a piece of land in paradise. Read along to find out what scenario fits your situation best.
1. Re-mortgaging
If you have adequate equity in your current home, then opting to re-mortgage it may be a wise move to acquire the finances you will need to buy an overseas property. Before doing so, you would need to carefully assess your ability to afford the long term payments for your mortgage vis a vis the fluctuating interest rates. Doing so will prevent defaulting on your payments which could subsequently lead to your home’s foreclosure.
2. Local Lender
A number of overseas buyers depend on local lender’s to help finance their properties, as most countries have developed an advanced and stable market for real estate mortgages. In fact, many real estate gurus advise going to local banks who are best equipped to know the ins and outs of real estate purchases in their respective country. As an example, if you are looking for Cyprus properties for sale, then you could speak with lenders in Paphos or Nicosia for help in the buying process. As these lenders will judge you on your financial liquidity, it is also recommended that you prepare all of your financial documents beforehand so that your local lender can conduct a quick assessment.
3. International Lender
The past decade has brought an influx of foreign real estate investors in many of the outlying countries in Europe and Asia, and as such international lenders have become popular. As these lenders have maintained a strong niche in a number of countries, they can be a more convenient choice for you. Working with them allows you to place all of your financial transactions under a single company which can make your overseas property investment much easier. Moreover, these international lenders have the experience and expertise to understand local laws and business strategies which can prove to be highly beneficial for you.
4. Brokers
If you do not have the time nor the patience to go through all of the above-mentioned steps, then hiring a broker who will do all the necessary leg work for you may be your best bet towards getting your financing.