Buying property abroad offers an excellent and exciting investment potential that many Brits and others from around the world are tapping into. With major investment hotspots cropping up all over the world and stories of incredible returns abounding, many a would be buyer is likely to sit down and wonder just how an average person, without a huge bank account, might be able to buy into the growth potential.
In this article we’ll explore the possibilities for funding the dream of owning a holiday home abroad. Some expats and investors are drawn to very traditional methods for financing, but others have taken a more unique approach to the money issue. The reality of the matter is that financing does depend a lot on the country in question. Within some areas it is relatively easy to get financing from British lenders, including local banks and major lenders like Barclays. In other areas however, buyers might have to be a little more creative to ensure they have the cash on hand to pay for their purchases.
Some of the popular ways people are financing the dream of buying property abroad include: -
Starting out by ensuring a low price is involved. It is infinitely easier for a person without a huge bankroll to buy in areas where prices are already low. Whilst some of these areas might come with high risks, many buyers find the potential for growth too good to pass up. With the recent success of Eastern Europe’s Bulgaria as an example, some buyers are finding countries in this region, with their incredibly low prices, very appealing and rather easy to fit into a tight budget.
Seeking bank financing. Some investment hotspots are relatively easy to gain financing in either through British lenders or local banks. As long as personal credit history is clean, the down payment is in hand, and the market is considered favourable, this option is open in many areas. Financing in most European hotspots, for example, is generally attainable.
Mortgaging a first property. Some Brits are cashing in on the equity in their homes to fully or partially fund the purchase of properties in places like Bulgaria, Belize and other regions where prices are still low and the exchange rate greatly favours British money.
Selling possessions. Some expats who have purchased property abroad report selling all or most of their possessions to pay for the buy. In some cases, this even includes their home in the UK. With housing prices in some areas coming in at a mere fraction of UK costs, this is a way to fully escape mortgage payments and interest charges.
Playing the exchange market and borrowing money. More than a few buyers have begged loans off family members and friends to finance dreams in Bulgaria, Cyprus and elsewhere abroad. Some are using the loans to play the exchange rate market to make their money go even further.
Buying property abroad is a very in thing to do. With more than 200,000 Brits leaving the UK on an annual basis for life elsewhere overseas and growth potential in some markets too good to pass up, many would be buyers are coming up with any way they can to finance their dreams.
When buying property abroad it does pay to carefully research the market and stability of the country in question. Whilst some investors have made small fortunes buying elsewhere, others have been taken to the cleaners. If it sounds too good to be true, chances are the property investment is just that.
If the price and potential check out and they are too good to pass up, there are ways to finance the dream of owning a home in the sun even when a bank won’t write a loan. Creativity is often the key to doing so – especially if you don’t happen to have a huge bank account to back up your desires.
