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Article #137: Real Estate Finance Overseas

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After the technology bubble burst back in secured against the equity in their
2000 the stock markets suffered a bleak primary residence.
period of decline and investors chose to The negative side of this option to raise
place their focus on bricks and mortar real estate finance to buy overseas
rather than falling share prices and they property is that the purchaser's primary
began investing heavily into real estate. residence will be the security against
As a result the second home and the the loan and naturally this introduces an
buy-to-let real estate markets in many element of risk.
countries around the world such as in the 2) The second option available to buyers
UK, US and Australia boomed. However, as looking for real estate finance overseas
the real estate affordability gap is getting a mortgage locally in the
continues to widen in these nations and country in which they want to buy. Some
fewer first time buyers can even get onto countries such as Spain, Germany and
the first rung of the real estate ladder, France for example offer attractive
property price increases have begun to interest rates and payment schedules to
cool off and the ability to generate buyers from other European nations and
impressive rental yields and strong many countries offer mortgages to
capital appreciation has slowed right international purchasers who can provide
down for at least the short term. a decent sized deposit.
At the same time the stock markets around Anyone thinking about buying abroad would
the world remain volatile and so now many do well to also research which banks and
more investors are looking overseas for lending institutions exist in that
alternatives to cooling domestic housing country, whether they are allowed to lend
markets and bumpy rides on the stock to foreign buyers and if so, are the
market. Many are finding that there's an criteria for getting a loan and the terms
abundance of real estate opportunity in and conditions of the loan favourable?
emerging countries around the world which 3) The final option available to the
has created a strong demand for real majority of real estate investors looking
estate finance overseas. to finance the purchase of a property
For those considering joining the abroad is an international mortgage
jet-to-let real estate investment set provided by an international lender who
here are the three main options available usually has experience in the country
when it comes to raising real estate from which the borrower heralds and also
finance, loans or mortgages to buy in the country in which they wish to
property abroad. invest which can make the whole finance
1) In many of the nations that were the process so much simpler...but the
first to boom the property markets are downside is that arranging such mortgages
now stagnant and because lenders have can be far more expensive than the first
fewer customers to provide finance for two options available to those
they are actively targeting those who contemplating their real estate finance
have yet to upsize, release equity or options.
take out a second mortgage and offering The availability or applicability of any
them increasingly favourable terms, type of mortgage or finance raising
conditions and interest rates. scheme discussed in this article is
For anyone thinking about buying real something that needs to be determined on
estate overseas in a country where they an individual basis therefore this
believe it will be difficult for them to article does not constitute advice.
secure local finance or where interest Anyone hoping to raise finance to
rates are unattractive, the option may purchase real estate overseas should seek
exist for them to re-mortgage their expert financial advice.
existing property or take out a loan






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