Buying property abroad is no longer a pipe dream. In many European countries, housing is cheaper than an apartment in Moscow or St. Petersburg.
Do not always have the option to pay immediately, so buying on credit remains a popular way to buy real estate.
Make a loan for overseas property in several ways:
* Take a consumer loan or unsecured loan against existing property in a Russian bank;
* Use the services of foreign banks in Russia;
* Apply for a mortgage loan to the bank in the state where you intend to buy real estate.
Today, Russian banks do not offer mortgage loans to purchase real estate in other countries. To buy a property abroad can take advantage of consumer credit secured by existing property. To this end, the borrower provides a flat, house or land in Russia. He gets up to 85% of the appraised value of the object. The borrower is not obliged to account to the bank about the purpose of the loan.
Credit is more convenient to get into the country in whose territory the property. Compared with Russian banks, foreign offer several advantages:
In Europe, receive a loan easier. To receive the credit in Russia, you need to prepare many documents: application, passport, confirmation of the financial condition of borrower, collateral documents and the financed property. Abroad is usually sufficient information about the official income and identity document. However, many Russian banks are trying to simplify and expedite the issuance of credits.
Overseas interest rates are much lower: on average, they do not exceed 5-6%. In Russia, rates vary from 15 to 20%.
Interest rates on loans to French banks account for about 3%. In some regions of France (Bordeaux, Limousin, Charente, Poitou, Midi-Pyr?n?es) rates a record low - from 2,5 to 2,8%.
In Spain, Barclays Bank offers a rate of 3.2% for loans up to five years.
In Portugal, some banks - for example, Lloyds TSB - following crisis stopped lending. Caixa Geral de Dep? Sitos, the largest Portuguese bank, like most banks in the country, provides loans for 30 years with a rate of 3-4%.
In Turkey, until 2007, the banks do not give out mortgages, and today foreigners will be able to borrow not all Turkish banks. BNP Paribas in Turkey provides loans of up to 20 years with a rate of 4,2%. Most often, banks make loans in the country for 10-15 years with a rate of 6-6,5%.
In Italy, the interest rates reach 5-6%.
Florida (USA) Bank of America provides loans of up to 30 years with a rate of 6%, but for the loan with the bank required the alien green card - identity card confirming the residence.
However, Russian borrowers may face difficulties in obtaining credit with foreign banks:
In some countries, restrictions on mortgage loans to foreigners. For example, in Montenegro, such services have only two banks - Perva Banka and Hipo Bank. A foreigner can get a mortgage, if you make a lump sum initial payment of 50% of the cost of housing, and if the developer would give the bank its guarantees with respect to the borrower. The UAE has limited the number of properties that are non-residents can get a mortgage. In Egypt, foreigners generally can not arrange a mortgage, but have the right to hire when purchasing real estate.
Sometimes when you grant credit to foreigners have additional requirements: the presence of guarantors, residence permit, work permit. For example, in Bulgaria to take a mortgage, you need to enlist the support of a trusted person - a citizen of the state. Typically, in this capacity the representative of real estate companies.
Repay the loan abroad can only official income. Russian banks are less categorical in this matter.
To take the credit, you can also contact the service representative offices of foreign banks in Russia - such as BNP Paribas, Raiffeisen Bank, Citibank. However, the conditions for granting loans in foreign banks differ from those of their subsidiaries in Russia. For example, British bank Barclays mortgage loans with a rate of 3-4%, while its Russian representative - from 11 to 18%.
In addition, there are agencies which act as intermediaries between the Russian buyers of real estate and foreign banks. But the prices of these firms are usually higher than the average at least 10%.
So, if there is a nice feature, it is better to take out a loan in the country where real estate is located. But if the state imposed restrictions on mortgage loans to foreigners, it is better to use consumer loans to Russian banks.