As we see many investors trying out their luck in overseas properties, many of us are likewise enthused to join the bandwagon and become an owner of a property outside of our country. But the complications and documentations involved in getting an overseas mortgage is oftentimes a daunting task, especially for someone who is inexperienced. Once you have finished narrowing down your choices in looking for your ideal foreign home, then the real work towards acquiring it begins.
Owed to the increase in the number of investors purchasing land elsewhere, overseas mortgages in the past years have grown more diverse. In fact, today’s real estate investor and second home buyer can choose among a wide range of avenues to attain their mortgages, from international lenders, local banks, or by way of brokers.
What is an Overseas Investment Mortgage?
The renewed flexibility in local and overseas banks along with the continued strength of US and UK currencies has created a growing influx of American and British investors hoping to expand their real estate portfolio overseas. And more often than not, doing so would require you to acquire a financial mortgage to afford your investment.
In acquiring a mortgage, you would generally need to make one of the two following choices: get an overseas mortgage in the country where you hope to purchase, or take your transaction through your local bank. Simply put, an overseas mortgage is one that is established in countries with strong real estate presence such as Spain, France, Italy, Cyprus and Poland just to name a few.
Source – sully_aka__wstera2
What are the Advantages of Overseas Mortgage?
The benefits of acquiring an overseas mortgage are many. Here we state only some of the most relevant ones.
Flexibility – As foreign financial institutions hope to encourage more investors to enter into a lending agreement, many foreign lenders and banks have grown much more adaptable and accommodating to a variety of foreign investors.
Lower interest rates – Financial gurus also add that the Euro Zone has a relatively lower interest rate than that of the UK and the US.
Efficient – International lenders understand the different rules and regulations for foreign property transactions, which mean that the purchase and closing can be much more efficient.
What are the Disadvantages of an Overseas Mortgage?
Use of a different currency – The downside to overseas mortgage, however, is that they make use of international currencies which can at times work for or against you.
Communication barrier – As opposed to dealing with a local bank with whom you can personally interact with, overseas loans makes use of foreign lenders which can create some communication difficulties for you.
Different rules – This can be the biggest problem, as unknown problems can occur due to that particular countries rules and lending guidelines that you are unaware of. This is why seeking out counsel in the local area can be extremely helpful.
About the guest blogger For those who are excited about owning a second home in paradise, take a look at your options for Cyprus property for sale from Aphrodite Hills. Their resorts offer ownership and investment opportunities for private villas and luxury condos in one of the most beautiful places in the world.