Opportunities to buy real estate abroad are attracting more and more people who want to invest in a good at a low price. There are many reasons for this: diversify your real estate portfolio, take advantage of a more pleasant climate or even seize an investment opportunity. In any case, the financing of the acquisition is a crucial step. This is where private credit for a property purchase abroad comes in. In this article, we'll walk you through everything you need to know about this topic and how to maximize your chances of getting a private loan for a real estate purchase abroad.
- What is a private loan for a real estate purchase?
- Why choose a private loan for a real estate purchase?
- The steps to obtain private credit for a real estate purchase
- Three tips to optimize your chances of getting a personal loan
- The best regions to buy real estate abroad?
- Conclusion on private credit for a real estate purchase abroad
What is a private loan for a real estate purchase?
A private credit for a real estate purchase is a type of loan granted by financial institutions to finance the acquisition of real estate. Unlike traditional mortgages, private loans offer greater flexibility and are generally quicker to obtain. They are particularly suitable for property purchases abroad, where regulations and conditions may vary from country to country. With a personal loan, you therefore immediately have the funds to buy the property of your dreams!
Why choose a private loan for a real estate purchase abroad?
Three reasons that will convince you to quickly take advantage of private financing for your real estate purchase.
- Flexibility: Private credit offers greater flexibility than traditional mortgages. Eligibility criteria are generally less strict. It is also possible to negotiate the terms of the loan according to your specific needs.
- Speed: Obtaining private credit for a property purchase abroad is much faster than obtaining a traditional mortgage loan. This can be particularly advantageous when it comes to seizing an investment opportunity quickly.
- Freedom of purchase: Once the funds are in your account, you are free to buy the good you want. Under no circumstances will you have to justify your purchase. Unlike mortgage financing, a real estate appraisal before making your purchase will not be necessary.
A last significant point also makes the private credit solution very advantageous. It is the fact of being able to waive your real estate purchase at any time. Indeed, a private loan can be repaid at any time and free of charge. This, according to the consumer credit law (Art 17 CCL).
The steps to obtain private credit for a real estate purchase abroad
Assess your ability to repay your financial needs
Before starting to look for private credit for a property purchase abroad, it is important assess your financial needs. Take into account the total cost of the purchase, the additional costs (notary, taxes, etc.), as well as your ability to repay. Once your budget is clearly fixed, you can look for the right intermediary.
Choosing a Trusted Private Credit Broker
It is essential to select a reputable private credit broker and experienced in the field of real estate purchase abroad. Take the time to read customer reviews and check provider references. To obtain private credit for a property purchase abroad, you will need to compile a complete file. This should include your personal, financial and professional information. Be sure to provide accurate and up-to-date information to facilitate the preparation of your file by your advisor. A private credit broker can accompany you throughout the process of getting your loan. It will help you find the offer that best suits your needs. Brokers often have a network of financial partners and local expertise. This will facilitate the search and the negotiation of the best conditions for your private credit for a real estate purchase abroad.
Receive the funds and buy the property of your dreams
Once your private credit agreement has been signed, the funds can be released and transferred to your account within 14 days. Make sure you follow your broker's recommendations and that all prerequisites release of funds are met. The advantage of a personal loan is therefore the speed with which you can benefit from the funds. Thus, you will not miss a possible real estate opportunity!
Three tips to optimize your chances of obtaining private credit for a property purchase abroad
👍 The importance of a well-prepared file
A complete and well-prepared file will facilitate the analysis of your private credit application for a property purchase abroad. Do not hesitate to seek professional help to ensure that all required documents are present and in compliance. Financial institutions more easily grant private loans for a real estate purchase abroad to borrowers with a solid profile. For improve your chances, immediately request the services of Lica. Our financial advisers will study your credit history in order to prepare a solid file!
✌ Anticipate additional costs
The purchase of real estate abroad generates additional costs. These may include taxes, notary fees or currency conversion fees. Take these costs into account when developing your budget and your private credit application. Buying real estate abroad involves uncertainties, particularly in terms of fluctuations in exchange rates and variations in the real estate market. Provide a financial safety margin to deal with possible unforeseen events. Do not hesitate to ask us for advice when applying for private credit. We benefit from a solid experience in the purchase of real estate using a personal loan.
🤙 Do not solicit multiple brokers
In fact, perform several private credit applications at the same time can have negative consequences. This is because each credit application is recorded in the ZEK credit center. Too many requests in a short time can be interpreted as a sign of financial distress. In addition, one or two refusals recorded in succession in the central ZEK could even completely block you in your future steps. It is therefore strongly recommended to make only one request at a time with a recognized private credit broker.
What are the best regions to buy property abroad?
The choice of region to buy real estate abroad depends on several factors. You will have to take into account your budget, your investment objectives and above all your personal preferences. However, here are some regions that could be attractive for people who would like to buy real estate abroad using private credit:
- Portuguese: The Portuguese real estate market offers affordable prices and a high potential rental yield. This is particularly the case in the cities of Lisbon, Porto and in the south of the country.
- Spain: Property prices in Spain have fallen in recent years, providing investment opportunities at attractive prices, especially on the Costa del Sol.
- Croatia: Croatia offers affordable prices for property investors as well as high rental yield potential, especially in popular coastal towns.
- UNITED STATES : The US real estate market is attractive to foreign investors due to market stability and low interest rates, especially in cities like Miami, Orlando and New York.
- Thailand: The Thai real estate market offers affordable prices, a low cost of living and a high potential for rental returns, especially in the cities of Bangkok and Pattaya.
It is important to note that buying real estate abroad may involve risks and that it is essential to thoroughly research local regulations and laws before making a decision. Also, it is recommended that you consult a real estate investment expert for advice on the best investment options and potential risks.
Our conclusion on private credit for a real estate purchase abroad
Obtaining private credit for a property purchase abroad is a crucial step for people wishing to invest or wishing to take advantage of holiday accommodation. However, with a methodical approach and with the help of experienced professionals, you can optimize your chances of obtaining a private loan adapted to your needs and your real estate project.
At Lica, we specialize in private credit brokerage in Switzerland and we support you throughout your real estate purchase project abroad. contact us today to benefit from our expertise and our network of financial partners to find private credit for a real estate purchase abroad that meets your needs
Do you have questions before applying for private credit? Our advisors are there to answer your questions 7 days a week directly on WhatsApp. Ask us for more information and we will be happy to answer you!