Can A Foreigner Finance The Purchase Of Real Estate Overseas?March 14, 2014, Panama City, Panama:Options for non-resident foreigners to borrow for the purchase of real estate overseas are limited in the current market climate.
Dear Live and Invest Overseas Reader,
Yesterday afternoon I participated in our “How To Buy And Profit From Real Estate Overseas” webinar. For the hour-long conversation, Kathleen Peddicord, Real Estate Marketing Director James Archer, and I welcomed three special guests representing key markets of interest right now—Panama, Brazil, and Argentina/Paraguay/Uruguay.
The agenda for our discussion was broad. We talked about the main benefits of investing in real estate overseas, as well as the pitfalls and risks. We talked about how you get started investing in real estate overseas if you’ve never done it before. And we focused on some key current opportunities (this with the help of our special guests).
We also fielded questions. Unfortunately, we ran out of time before we were able to address all of the questions raised by participants in the event. One that we received from a number of listeners on the line but weren’t able to speak to before our hour ran out had to do with financing.
Specifically: Can a foreigner get financing for a property purchase in another country?
Like so many questions to do with buying real estate overseas, the answer is that it depends—first on the country. If you’re looking to buy in a country where it’s possible for foreigners to borrow for the purchase of property, then it also depends—this time on whether you can meet the local requirements for lending.
Often, in countries where formal lending for the purchase of real estate is available, banks treat resident foreigners the same as resident citizens. If you’re living and working in a country legally, banks likely will consider you a “local” for the purposes of lending money to you as long as you have a job with a local company and can show formal paystubs.