• About Us
  • Contact Us
  • Privacy Policy
  • Terms
  • Unsubscribe
No Result
View All Result
Live and Invest Overseas
FREE REPORT
BEST PLACES TO RETIRE
*No spam: We will NEVER give your email address to anyone else.
  • HOME
  • COUNTRIES
    • Top Destinations
      • Portugal
      • Panama
      • Belize
      • France
      • Colombia
      • Dominican Republic
      • Thailand
      • Mexico
      • Spain
      • Argentina
    • Browse All Countries
    • Best For
      • Retire Overseas Index
      • Health Care
      • Cost of Living
      • Investing in Real Estate
      • Editor’s Picks For Retirement
      • Establishing Residency
      • Starting an Online Business
      • Single Women
      • Playing Golf
  • BUDGETS
    • Super Cheap ($)
      • Cuenca, Ecuador
      • Chiang Mai, Thailand
      • The Philippines
      • Las Tablas, Panama
      • Granada, Nicaragua
    • Cheap ($$)
      • Algarve, Portugal
      • Medellin, Colombia
      • Boquete, Panama
      • Carcassone, France
      • Buenos Aires, Argentina
    • Affordable ($$$)
      • Abruzzo, Italy
      • Barcelona, Spain
      • Las Terrenas, Dominican Republic
      • Puerto Vallarta, Mexico
      • Costa de Oro, Uruguay
    • Luxury On A Budget ($$$$)
      • Ambergris Caye, Belize
      • Paris, France
      • Panama City Beach Area
  • Real Estate
  • ARCHIVES
    • Living & Retiring Overseas
    • Raising A Family Abroad
    • Foreign Residency & Citizenship
    • Offshore Diversification
    • Our Latest On Coronavirus ⚠️
  • Making Money
    • International Real Estate
    • Banking
    • Employment
    • Investing
  • CONFERENCES
  • BOOKSTORE
Live and Invest Overseas
  • HOME
  • COUNTRIES
    • Top Destinations
      • Portugal
      • Panama
      • Belize
      • France
      • Colombia
      • Dominican Republic
      • Thailand
      • Mexico
      • Spain
      • Argentina
    • Browse All Countries
    • Best For
      • Retire Overseas Index
      • Health Care
      • Cost of Living
      • Investing in Real Estate
      • Editor’s Picks For Retirement
      • Establishing Residency
      • Starting an Online Business
      • Single Women
      • Playing Golf
  • BUDGETS
    • Super Cheap ($)
      • Cuenca, Ecuador
      • Chiang Mai, Thailand
      • The Philippines
      • Las Tablas, Panama
      • Granada, Nicaragua
    • Cheap ($$)
      • Algarve, Portugal
      • Medellin, Colombia
      • Boquete, Panama
      • Carcassone, France
      • Buenos Aires, Argentina
    • Affordable ($$$)
      • Abruzzo, Italy
      • Barcelona, Spain
      • Las Terrenas, Dominican Republic
      • Puerto Vallarta, Mexico
      • Costa de Oro, Uruguay
    • Luxury On A Budget ($$$$)
      • Ambergris Caye, Belize
      • Paris, France
      • Panama City Beach Area
  • Real Estate
  • ARCHIVES
    • Living & Retiring Overseas
    • Raising A Family Abroad
    • Foreign Residency & Citizenship
    • Offshore Diversification
    • Our Latest On Coronavirus ⚠️
  • Making Money
    • International Real Estate
    • Banking
    • Employment
    • Investing
  • CONFERENCES
  • BOOKSTORE
No Result
View All Result
Live and Invest Overseas
No Result
View All Result

Obtaining Bank Financing For Property Purchase Overseas

Lief Simon by Lief Simon
Mar 14, 2014
in Real Estate
0
Financing Property purchase Overseas
209
SHARES
3k
VIEWS
Share on FacebookShare on Twitter

Can A Foreigner Finance The Purchase Of Real Estate Overseas?

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.

As a non-resident foreigner, your options are more limited. In this case, you either won’t be able to get financing at all or the cost will be too much to make the option interesting. And, in this regard, as with most things in the offshore arena, the bar is always moving.

A decade ago, before the global real estate crisis, I was able to get a loan in France as a non-resident for the purchase of an apartment in Paris without too much trouble at all. Over the last few months, I’ve been trying to get a new loan for the purchase of another apartment in Paris. This week I’ve had to admit defeat. It seems that, today, it’s close to impossible for a non-resident to get a mortgage in France. The apartment purchase will proceed but without bank financing. I don’t have a choice.

Other countries where it’s been possible historically for a non-resident foreigner to get a mortgage but where that’s no longer the case are Spain, Ireland, and Panama. Technically, it’s not impossible today to borrow as a non-resident foreigner in those countries or in France either, but you’ll have to find the right bank and have the right profile get a loan.

As I said, I haven’t been able to find the right match in Paris. One bank I approached only does non-resident loans for people working for companies listed on the French stock exchange. Another doesn’t lend to non-residents who work for their own company. Etc.

If you are able to get bank financing for the purchase of property in another country, note that it will come with a requirement for a local life insurance policy. That adds to the cost of the mortgage, but, more important, it also can limit the possible length of the loan. Many insurance companies will issue life insurance policies only through age 75. Therefore the best a 60-year-old looking for a mortgage could expect might be a 15-year term.

Bank financing isn’t your only option when buying property overseas. Increasingly, in certain markets, a developer or individual seller can be willing to carry a mortgage on the property you’re interested in buying from him. With this kind of financing, you can’t expect terms like you might get from a bank, but a five- or seven-year loan, say, is better than no loan at all.

Lief Simon

Continue reading: Recovering Property Market On The Coast Of Spain

Comments

Tags: 'real estate overseas''real estate'Bank Financing In Foreign CountriesFinancing OverseasLife Insurance OverseasMortgages Overseas
Share84Tweet52
Previous Post

How To Buy And Profit From Real Estate Overseas Webinar

Next Post

How Budgeting Will Allow You To Retire Anywhere

Lief Simon

Lief Simon

Lief Simon has lived and worked on five continents and traveled to more than 60 countries. In his long career as a global property investor, Lief has also managed multimillion-dollar portfolios of rental properties, for others and for himself. He offers advice on international diversification in his twice-weekly Offshore Living Letter and monthly Simon Letter dispatches.

Related Posts

Alfama at night, Lisbon, Portugal
How to

The Perfect Time For An Overseas Property Purchase?

by Live and Invest Overseas
February 5, 2021
0

Thinking about making an overseas property purchase can arouse feelings such as excitement, fear, anxiety, relief, and accomplishment. Even seasoned...

Read more
Colonial style buildings line the Plaza Machado in Old Mazatlan, Mexico

Why Mazatlán’s Historic Center Is The Ideal Second Home

February 4, 2021
Cathedral at Plaza de Armas, Durango, Mexico.

Introducing Durango: Bargain Real Estate In Authentic Mexico

February 1, 2021
Beach in Cancun, Mexico.

Move To America’s Most Popular Expat Destination In 2 Weeks

January 28, 2021
White sand beach in Playa del Carmen, Riviera Maya, Mexico.

Top 13 Reasons To Buy Property In Mexico Today

January 27, 2021
How To Invest In Property 101: The Pitfalls You Should Avoid

How To Invest In Property 101: The Pitfalls You Should Avoid

January 18, 2021
Tropical waterside house with moored boat on lagoon side of Placencia in Belize.

Buying Real Estate In Belize: What You Need To Know

January 12, 2021
Next Post
trips back home and health care when living overseas can be an important minus to your budget if you want to save money.

How Budgeting Will Allow You To Retire Anywhere

A world full of fun, adventure, and profit awaits! Sign up for our free daily e-letter, Overseas Opportunity Letter, and we'll send you a FREE report on the 10 Best Places To Retire In Style Overseas Today.

Start Your New Life Today, Overseas

how to retire overseas

LIOS Resources


  • New To LIOS
  • Ask An Expert
  • Media Center
  • Contact Us
  • FAQs

Quick Links


  • Best Places To Live
  • Best Places To Retire
  • Finding A Job Overseas
  • Real Estate

Sign up for our free daily e-letter, Overseas Opportunity Letter, and get your FREE report: The 10 Best Places To Retire Overseas In 2021

  • About Us
  • Contact Us
  • Privacy Policy
  • Terms
  • Unsubscribe

© 2008-2021 - Live and Invest Overseas - All Rights Reserved.

No Result
View All Result
  • Home
  • Countries
  • Budgets
  • Archives
  • News
  • Events
  • Bookstore
  • Newsletters
  • About Us
  • Members Area
  • Contact Us

© 2008-2021 - Live and Invest Overseas - All Rights Reserved.

WANT TO RETIRE OVERSEAS?

Sign up for our free daily e-letter, Overseas Opportunity Letter, and we’ll immediately send you a free report on the 10 BEST PLACES TO RETIRE in style overseas. Each day you’ll learn about the best opportunities for international living, retiring overseas, offshore diversification and asset protection, and investing in real estate around the world.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.