Financing your real estate investment abroad... Such an enigma for some people ! Indeed, it is often necessary to go through a bank process to apply for a real estate loan.
First of all, the success of project for the real estate investment is conditioned by the question of financing. Making a credit is more advantageous than a cash payment but under certain conditions.
You will need quite important guarantees to have a credit for a real estate investment abroad.
There are several solutions to succeed in getting a home loan. Banks will often ask you to take out a mortgage loan that allows the bank to seize your property and resell it in the case of default. This guarantee will allow the bank to have confidence in your project.
The second solution is a collateral: if you have securities such as life insurance or shares, it is possible to have a loan to finance your real estate investment abroad. A bank guarantee on invested cash is also possible.
Another solution is an advance on a life insurance according to the duration of loan, if it is short or medium term.
The last solution is a consumer loan. The advantage of this type of credit is that it is personal, you don't need to justify it, unlike a car credit that requires an invoice or a quote to release the funds.
Of course, depending on your location, your bank will be the best to inform you about the conditions and the possibilities of taking out a loan for a real estate investment abroad.
With our help, you will be able to study the feasibility of your real estate investment project abroad, taking advantage of our financial partners located in Poland and France.
This is a very important step: it would be a shame to invest time and build up a file if you do not have the capacity to succeed in your investment project.
We will see later that there are other solutions that can lead to your project.
Depending on the country in which you wish to invest, you may be taxed on a fairly substantial contribution. We know that in Poland the required contribution is between 10 and 20% of the value of the property to be acquired.
Therefore, a 110% loan to finance notary fees and works are not possible in the first instance.
However, we invite you to contact us if you have any questions regarding to this subject.
Another thing to know is the opening of a bank account for the provision of the borrowed funds and the collection of future rental income is mandatory.
That is why we advise you to get a professional to accompany you in your steps and reassure you.
The conditions for obtaining a loan are the same in each country. You will be asked for your employment contract, your identity card, a visa depending on a country, as well as your pay slips.
Other documents may be requested but it depends a lot on the banking institutions.
Another point: with the European Union, almost all countries use the Euro. This is a good advantage to avoid the risks linked to currency exchange.
Finally, some countries offer financing by the property developer. Part of the property is then financed by the investor's contribution and the rest, covered by zero-interest, by the loan promoter.
This is another solution, but it requires about 20% of the initial payment.
Even if you have the possibility and you are financially able to make a real estate investment abroad, we strongly advise you to get a professional who will know the real estate market well. Finding yourself in a foreign country with the language barrier and different rules can also be obstacles.
We advise all our members to come and discover the city. We can visit together some nice apartments and neighborhoods that might be in your interest.
A real estate investment project abroad should not to be taken easily. It is a complex process so the services of professionals are highly recommended.
Any question about living or investing in Poland ? Contact us.