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International Real Estate Financing

Looking to buy property abroad as an investment, but finding it difficult to secure funding for your real estate venture?

Depending on the country where your chosen real estate market is, securing funding for such an undertaking may prove more of a challenge. Mortgages are not easy to secure especially if you are a foreigner, lacking knowledge on the local market's retail banking operations. 

You could also be susceptible to paying higher interest rates, large down payments up to 50% of the property's value, high taxation and minimal opportunities to exit the market, in case you want to sell the acquired real estate property. 

Some countries may also require for you as an investor to have a life insurance policy for the mortgage, and naming the bank as a beneficiary. Mortgages and most United States based banking institution's lending services, are not easily accessible for foreign property purchases. How then can you get funding for real estate purchases abroad?   

How to Finance your International  Real Estate 
Property Developer Financing

Buying many pre-construction properties in a development area or real estate may qualify you for property developer financing, depending on the country of your chosen investment. Property developer financing may be interest free, has no age restrictions or life insurance requirements, and usually involves minimal paperwork. You may be required to make payments on fixed dates, monthly, or as per each construction stage.

Cash Purchase

Buying property abroad by paying cash may help you get the best price, discounts and many other benefits. Buying using cash is better if the property is already developed and not under construction. If you pay cash upfront for a property under development, you stand the risk of having the project delayed due to unforeseen problems, and end up spending much more than you should be on the property.

Funds from a self-directed IRA

Planning to buy a property abroad and have funds in your self-directed IRA? You may be able to use funds from your IRA to purchase the property and use it as a rental or as an investment. In contrast to common IRAs, funds from a self-directed IRA can be invested in a wide category of assets, including real estate both local and international. You can use the funds to pay for the real estate property and maintenance expenditures. It is best to seek the advice of a qualified tax specialist and or real estate lawyer, to advice you on the risks and possible implications of using funds from your self-directed IRA, to invest in foreign real estate.

Hard money loans

Planning on purchasing a property abroad but lack financing? A hard money loan may just be what you need to secure your international property and add it to your investment portfolio. Hard money lenders do offer loans up to USD $10 million or more for such foreign investments, and can help you fund your dream properties abroad. Terms for such loans usually vary depending on the investor lending you the money but, the collateral is often the property you plan to purchase. The value of the property will determine the amount of hard money loan you will get, which may be as much as 100% of the property's worth.

Buying land in a foreign country may prove to be quite costly due to numerous fees and taxes, all of which could increase the property's sales price by as much as 10%. There may also be lawyer fees, notary and registration fees, in addition to, the real estate agent's commission. 

It is crucial that you do research and know the local laws and limitations, with regards to foreigners buying real estate in the country. Consulting a qualified real estate professional and a property lawyer in the country of your intended purchase, will help make the process easy and ensure your property rights are equally protected.

What to consider before buying an international property

Before buying a property abroad, you need to take into consideration;

Living costs

You would want to choose a country to buy property in that has comfortable costs of living. It is best to go where the cost of living is much less than where you are currently residing.

Property ownership laws

Make sure to have the rights to own property in a country before considering making an investment. This is a measure to safeguard your future investments.

Taxation liability

Know how real estate taxation works in a country before investing funds on a property. Poor tax planning may in a few years down the road, rob you of your investment if you do not take early precautions.

Available financing

Funding a foreign property can be costly and may take a lot of time without good research and proper preparation. You should carefully evaluate all available financing sources at your disposal, and decide on what is in your best interest and gives you an advantage.

Flexible Exit Strategy

It is important to have a good, flexible exit strategy when you feel ready to move abroad. Give yourself time to adjust to your new reality before you make a move to a foreign land.

Why you should invest in a foreign property?  

A property especially real estate is a lucrative investment with a potential for future growth. Why should you invest in a property abroad? 

Earn foreign income

If you are planning on diversifying your investment portfolio, having property in a foreign land can help lower the risk profile of your investments, and earn you some foreign currency.

Financial security

Having a property in another country makes it easier for you to access credit in the country and also serve as security, for any financial services you may need in future.

Easier retirement budget

Owning a foreign property means you are able to retire in whichever country of your choosing, and still have enough disposable income to retire and live comfortably at lower average living costs.

international real estate

How to buy an international Property  

You want to invest in a foreign property but how can you purchase property overseas? Here are the best steps to take;

Research and pick a location to invest in
Do your research and make better informed decision about the locations you are considering investing in. Help from local professionals may come in handy.
Know the location's real estate trends and history
Property trends and history vary in different locations. A good research on a location, history and the types of properties, can give you a good indication of the potential for growth of the property you have an interest in.
Research location's market forecasts
Hiring the services of a local economists and financial expert, will help you know what is expected of the country and location you are interested in investing in. You want to buy a property in an area with growth potential.
Research the country's legal requirements
Make sure to research the necessary legal processes and or documentation required for you to own property, in a location you may be having an interest in investing in.
Seek help from local experts
Local help from experts like real estate agents will help you make a quick decision, due to localized advice and information readily availed at your disposal.

Those are some of the steps you need to follow if you want to buy an overseas property with less hurdles along the way.

DISCLAIMER

Myhelpfund.com: is a referral and consulting services business. We are not Certified Financial Advisers, U. S. Securities Dealer, Stock Broker or Investment Adviser. We are not business consultants and acting in the capacity of a financial intermediary who provides advice to private individuals on or about business matters. .Please understand that the contemplated transaction(s) is strictly private and in no way relates to the United States securities act of 1933 **(THE”ACT”)* http://sblcfinancing.com/assets/sa33.pdf and does not involve the sale of registered securities. This transaction(s) are private and exempt from the act. Each investor associated in any way, directly or indirectly with myhelpfund.com as a potential funding resource must be an "Accredited Investor" as that term is used in federal and state securities laws. Myhelpfund.com provides a service through which clients and investors/lenders may identify each other but makes no actual or implied representations concerning the availability of any potential funding or funding resource. Myhelpfund.com neither effects nor attempts to affect any funding or business relationship between clients and any associated in any way, directly or indirectly investor or lender, and nothing contained in these services offering material should be construed as an offer to sell or the solicitation of an offer to purchase a security. Clients and Investors/Lenders associated in any way, directly or indirectly with myhelpfund.com are solely responsible for compliance of such federal, state, tax or local laws which may apply between them in any funding transaction and (clients) of myhelpfund.com are solely responsible to verify all funding contacts credentials by doing due diligence themselves. myhelpfund.com is not responsible for any problems or conflicts between clients of myhelpfund.com and any funding contacts. Myhelpfund.com does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with myhelpfund.com funding contacts/clients, you should consult a professional adviser. Most early-stage businesses and many other growth-focused businesses fail, and if you invest in a business as a direct or indirect result of myhelpfund.com it is significantly more likely that you will lose all of your invested capital than you will see any return of capital or a profit. You should only invest in businesses that you can afford to lose without altering your standard of living. Myhelpfund.com receives compensation of fees charged on funding that has been accepted and received by the clients. All up front fees paid to our referral partners through their website or by other means are subject to their own terms and myhelpfund.com shall not be held liable for the same. All clients' information and funding transactions positive or negative are held in complete confidentiality and no information will ever be shared outside of our funding network or sold and no clients will ever be used as a reference or referral to any future potential funding seekers considering joining myhelpfund.com.

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