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  • FIRST POST
    • JohnBravo
    • By JohnBravo 22nd Sep 16, 11:17 PM
    • 68Posts
    • 4Thanks
    JohnBravo
    Loan for a property abroad
    • #1
    • 22nd Sep 16, 11:17 PM
    Loan for a property abroad 22nd Sep 16 at 11:17 PM
    Hi All,
    I hope you are well.
    Would you suggest any good solution for that?
    I don't think there is any way to get a mortgage for a property abroad, but I was thinking about financing part of this investment with a bank loan.
    Does it make any sense?
    Please advise.
    Best regards,
    Last edited by JohnBravo; 22-09-2016 at 11:25 PM.
    "If you work for a living, why do you kill yourself working?" Tuco
Page 1
    • TadleyBaggie
    • By TadleyBaggie 22nd Sep 16, 11:41 PM
    • 1,840 Posts
    • 1,285 Thanks
    TadleyBaggie
    • #2
    • 22nd Sep 16, 11:41 PM
    • #2
    • 22nd Sep 16, 11:41 PM
    Does it make any sense?
    Originally posted by JohnBravo
    Not to any sensible lender it wouldn't.
    • DCFC79
    • By DCFC79 23rd Sep 16, 1:47 AM
    • 27,192 Posts
    • 17,261 Thanks
    DCFC79
    • #3
    • 23rd Sep 16, 1:47 AM
    • #3
    • 23rd Sep 16, 1:47 AM
    You would be better off getting a loan in the country you want to buy in.
    Je Suis Charlie
    • PeacefulWaters
    • By PeacefulWaters 23rd Sep 16, 4:10 AM
    • 4,680 Posts
    • 5,678 Thanks
    PeacefulWaters
    • #4
    • 23rd Sep 16, 4:10 AM
    • #4
    • 23rd Sep 16, 4:10 AM
    Do you own a property here?

    Is there enough equity in it to purchase the overseas property outright?

    Remortgage or further advance with existing lender might be options.
    • nanny beach
    • By nanny beach 23rd Sep 16, 8:48 AM
    • 31 Posts
    • 46 Thanks
    nanny beach
    • #5
    • 23rd Sep 16, 8:48 AM
    • #5
    • 23rd Sep 16, 8:48 AM
    Will you live in it, rent it out? Depends what country it is in. A lot of people bought "cheap" property in Spain, only to find, it didnt actually have planning permission or the delveoper didnt own the land, and had them demolished. I would seek a solicitor, who is either in the country of your choice, or one here, is completely "up" with all the planning/reg there.
    • AlexMac
    • By AlexMac 23rd Sep 16, 9:18 AM
    • 1,613 Posts
    • 1,386 Thanks
    AlexMac
    • #6
    • 23rd Sep 16, 9:18 AM
    • #6
    • 23rd Sep 16, 9:18 AM
    There are lots of options - start at
    http://lmgtfy.com/?q=Buying+a+property+Overseas+Mortgage

    with a good comprehensive overview at

    http://www.which.co.uk/money/mortgages-and-property/guides/buying-overseas-property/

    One issue with mortgages in the overseas country is that you'll then be subject to exchange rate fluctuation, as you'll be borrowing in Euros (or whatever) but (unless you are paid in dollars or euros or whatever if you work overseas) paying in pounds. So when the pound drops ion value you pay more; a 500 Euro per month mortgage would have cost you £350 per month in July last year, but about £440 today; a jump of almost a ton!

    The suggestion, above, to borrow against your home in the UK is therefore sensible, but there are lots of other factors. We owned a flat in southern Italy for 5 years; really cheap- about £23k to buy, but Ryanair flights, car hire and even restaurant meals went up in price over that time so it stopped being a cheap holiday.

    There were other cultural factors too; we were secure in a town, but a majority of other Brits bought isolated country places; and a surprising % got burgled; sometimes catastophically (in one case even ripping out boilers, rads, plumbing pipework and electrical cabling from walls). Maybe related to the fact that the area was very poor, that Brits were seen as fair game, or that they had not paid the local "Vigilanza" security company. As one local friend explained, it's like insurance; they don't really guard your house, just tell the other villains not to rob it!

    We were lucky to sell before Italy's continuing recession really stalled the local housing market, and that revealed another factor; the lacl of house price inflation. We only got back what we paid for it. But we did well because the exchange rate had moved our way in that a stronger Euro meant we made a few grand despite there being no uplift in its value. Friends who recently sold in a fashionable area of coastal France found the same; they got less Euros than they'd paid... 12 years previously! Spain has fared worse, whereas some UK property will have doubled in value in that time.

    So do the numbers before you buy; our Italian flat (in a 400-year-old stone building) had very low maintenance, tax and utilities costs; but our mates French place probably cost them much more that three or four holidays each year. And after a while it gets boring returning to the same place.

    But its your call!
    • JohnBravo
    • By JohnBravo 24th Sep 16, 12:55 AM
    • 68 Posts
    • 4 Thanks
    JohnBravo
    • #7
    • 24th Sep 16, 12:55 AM
    • #7
    • 24th Sep 16, 12:55 AM
    You would be better off getting a loan in the country you want to buy in.
    Originally posted by DCFC79
    Do you mean better conditions or a smaller deposit?
    "If you work for a living, why do you kill yourself working?" Tuco
    • JohnBravo
    • By JohnBravo 24th Sep 16, 12:57 AM
    • 68 Posts
    • 4 Thanks
    JohnBravo
    • #8
    • 24th Sep 16, 12:57 AM
    • #8
    • 24th Sep 16, 12:57 AM
    Do you own a property here?

    Is there enough equity in it to purchase the overseas property outright?

    Remortgage or further advance with existing lender might be options.
    Originally posted by PeacefulWaters
    No I don't so remortgage is out of scope at the moment.
    There is about 30% of the equity.
    "If you work for a living, why do you kill yourself working?" Tuco
    • jonesMUFCforever
    • By jonesMUFCforever 24th Sep 16, 10:50 AM
    • 22,936 Posts
    • 10,350 Thanks
    jonesMUFCforever
    • #9
    • 24th Sep 16, 10:50 AM
    • #9
    • 24th Sep 16, 10:50 AM
    I would suggest that you are fully committed at present and can't actually afford the property abroad.
    What goes around - comes around
    give lots and you will always receive lots
    • JohnBravo
    • By JohnBravo 24th Sep 16, 3:40 PM
    • 68 Posts
    • 4 Thanks
    JohnBravo
    The thing is that I don't want to own a property in this country definitely not in over expensive capital city especially if in 30 years it will look like a Saudi Arabia and I am not talking about skyscrapers.

    I am not interested in spending 300k on a mediocre property if I can spend 80k on a 3x bigger property in a 600k+ pop city elsewhere.

    Besides such mortgage will take all my savings and the best years of my life.
    "If you work for a living, why do you kill yourself working?" Tuco
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