3 Ways Top Investors Finance Their Foreign Property Investments
What do you do when bank financing is not available in your destination country? This article explores other options to finance your foreign property investment.
You’re not getting the same mortgage deal you’re used to
Bank financing abroad will be different from what you’re used to at home. Here are some ways in which the terms will likely be different:
1. Loan-to value ratios will be around 50 to 75 percent of what you’re used to.
2. Terms may be shorter. It’s almost impossible to get a 30-year loan when buying abroad.
3. You will be offered adjustable interest rates, rather than fixed.
4. You might be required to get a life insurance to secure your loan for foreign property. This isn’t good news if you’re already around 60, as banks wouldn’t borrow you loans of more than 15-year terms. The reason being that insurance companies, as a rule, wouldn’t cover you when you’re above 75 years old.
Hence, there is need to check out other financing sources.
Financing tips from experts
Generally, here are some financing tips from foreign property experts:
