Over the years, many investors have begun to pay more and more attention to properties abroad as an investment path.The procedure for taking out a mortgage may be more complex for buying properties abroad. This article will answer some questions you may have on the subject, and provide information about a mortgage for an apartment abroad.
A mortgage is a specific type of loan taken from the bank directly for the purpose of purchasing a property. The difference from a normal loan is that the property bought with the loan money is pledged to the bank until the loan money is returned. After that, the property belongs to the buyer. Even before paying back the mortgage, the buyer can use the property or rent it out. In some countries the local banks allow taking out a mortgage for the purchase of assets abroad.
Some EU banks allow taking out a mortgage for the purchase of assets abroad. There is also the option of contacting a non-banking company for the mortgage. Non-banking companies tend to be more liberal in giving mortgages than banks, because the risk for them is lower. This means that a non-banking company may place low credit requirements More than banks.
The process of taking out a mortgage
Unlike a mortgage granted for properties in your country of origin, a mortgage granted for properties abroad creates additional complexity. And unlike a mortgage from a local bank, the property that the bank encumbers is an asset that the buyer already owns. In other words, a person who takes out a mortgage for an apartment abroad has to mortgage his existing house in order to get the loan for the purchase of the property.
It is also possible to take out a mortgage for an apartment abroad from a bank in the country where the apartment is bought, with a minimum mortgage period of about four years for foreign investors. If the buyer can declare current income, the mortgage from a foreign bank can cover up to 70% of the cost of the property. A buyer who does not provide such a declaration will be limited About 60%. In practice, this is a relatively small financing compared to the mortgage that will be given to buy a property in EU countries. However, the lower real estate prices abroad mean that even with these conditions, buying a property abroad may be much more profitable.
Mortgage in Europe - what types are there and what is the best?
A mortgage in Europe can come in several forms, depending on the agreement with the bank. A yield-based mortgage, for example, requires a payment proportional to the income the property produces each month. This is used for apartments that are purchased in order to rent and allows you to pay at a rate that will ensure profits. A loan based on a foreign currency is tied to the value of a foreign currency, and determines the monthly repayment according to the currency rate. Because of all the increased complication and risk involved in taking out a mortgage in Europe, the option of using a mortgage consultant should be taken into account. The consultant will help you find out exact details regarding mortgage conditions in Europe, determine the value of the deal, choose the most affordable mortgage option, and track additional expenses that may arise.
Obtaining a mortgage for an apartment abroad - in Slovakia
Slovakia does not restrict foreign investors in making real estate transactions, which makes it a good land for investments. A foreigner who is a permanent resident of Slovakia can get a mortgage relatively easily if he has the required stable income.
However, foreigners with a temporary residence visa may encounter difficulties in obtaining a mortgage or loan. The most convenient option in this case is getting a purposeless mortgage. This is a mortgage that is similar to a normal loan, and almost all banks in Slovakia give it. The most important part is that this loan does not require the presentation of a specific property for purchase in the first stages. This is a rather special case and not all EU countries have such a thing, which makes Slovakia a preferred option if you are interested in taking out a mortgage in Europe.
The process begins by arriving at the bank and submitting an application along with an ID. The bank then uses its access to the database of the state insurance company, the entity that calculates the monthly insurance premiums for all people living in Slovakia, whether citizens or foreigners with a residence permit. The bank learns from this data the level of the applicant's income, and decides on this basis whether to issue the mortgage.
A purposeless mortgage cannot remain on the applicant's account for more than three months to six months. Throughout this time period, the applicant must provide the bank with the details of the specific property he wishes to purchase. The bank draws up a mortgage agreement for itself on this basis, and the customer presents this contract to his mediator.
Another option is to request the mortgage jointly with a Slovak citizen who has a suitable income. The applicant and the partner approach the bank together to take out the mortgage. The applicant is the one who receives the money and has to pay it back, but the partner is there to cover the mortgage for the bank if the applicant stops paying.
In conclusion
Real estate abroad, and especially in Slovakia, is a profitable and stable investment path, and with appropriate advice, investors can take out a mortgage in Europe in order to cover the investment expenses, similar to a purchase in your country of origin. We will be happy to assist you and provide more information on this topic
コメント