Buying property abroad is entirely possible, provided you can find the financing. It's also essential to know a few tricks of the trade to ensure your peace of mind when buying property abroad. Want to make your project a reality? Find out how to obtain a loan to buy your property!
How to finance a property purchase abroad?
Lica will help you with your project! In fact, we study the financing offers on the market to find the one best suited to your needs. Then we'll take care of the financing until the funds are available, and finally, we'll accompany you through to the purchase of your home.
We put all our expertise at your service to help you buy your property abroad. With Lica, you benefit from the following services free of charge:
- finding the right financing to meet your needs;
- service tailored to your objectives ;
- a team of specialists;
- a choice of solutions comprising the best on the market;
- the highest acceptance rate in Switzerland
Banks in Switzerland generally do not finance real estate abroad...
In Switzerland, banks that would finance vacation homes outside the country are almost non-existent. However, there are foreign banks that will finance properties in the locations of their foreign branches. Local banks can also be approached for financing. In both cases, the approach is highly restrictive and requires the preparation of a highly complex file. Asking for financing from a local bank where the property is located is a very bad idea. You'll be faced with problems of regulation, translation and understanding. A loan in a foreign currency can also prove problematic, as exchange rates fluctuate.
As you can see, the best way to buy real estate abroad is to take advantage of a private loan on favorable terms.
Private loans: an excellent solution for buying property abroad
This is an excellent alternative for buying property abroad. This type of loan has the advantage of not being earmarked for any specific purpose. With a private credit, you can spend your money as you please! In particular, you can buying a property.
The private loan offers the following advantages when buying a property abroad:
- Financing up to CHF 400’000.-
- Repayment terms up to 10 years
- Attractive interest rates based on your file
Since you're free to allocate your funds as you wish, you'll have all the liquidity you need to finance your purchase and any resulting costs. What's more, with your funds in cashYou're in a strong position to negotiate the price of your future real estate purchase abroad.
Taking advantage of a loan with advantageous conditions is therefore an excellent solution for buying property abroad. You'll be free to buy the property of your dreams, and you'll find it easier to negotiate the price.
Before making a purchase, however, there are a number of points to bear in mind. We'll list them for you in this article. Enjoy your reading!
Here are the points to check before buying a property abroad
Land registry: how does it work?
Land registries abroad are different from those in Switzerland. There are several questions you need to ask yourself:
- Is there a mortgage on the property?
- Is the property encumbered by a right? If so, which rights?
- Are there any work or improvements to the property ?
To find your way around and avoid unpleasant surprises, you can call on local professionals. You can enlist the help of a notary, lawyer, advisor or even a broker. The specialized team at Lica can also accompany you and answer any questions you may have.
It is also important to register your property in the land register of the country concerned. Before validating your purchase, it is advisable to consult a specialist.
Costs when buying property abroad
And yes, as in Switzerland, you'll have to pay the costs of buying your property. These are generally made up of broker's fees, notary or lawyer's fees, and various taxes depending on the country in which you buy your property. Always pay close attention to these different fees, and seek advice from a third party before paying them.
The foreign country's tax system
Owning a property abroad is all well and good, but you'll also have to pay taxes. Property is often taxed in the country where it is located. Rest assured, you won't be taxed twice, thanks to double taxation agreements.
In principle, as the owner of a property abroad, you will first need to find out about the following taxes:
- Transfer taxes : This is a one-off tax paid when the property is purchased.
- Property tax: this is an annual tax based on the value of the property.
- Taxation of rental income : This is often a tax on the rental income you receive from your property. In Switzerland, rental income is added to your income. If your property is not rented out, the Swiss tax authorities will determine a rental value (theoretical income) and add it to your Swiss income.
- Wealth tax: As a foreign owner, the value of your property, minus any debt attached to it, will be added to your wealth in Switzerland. For example, if your property has a tax value of $200,000 and you have a debt of $100,000, your wealth in Switzerland will be increased by $100,000.
Property abroad: is it managed by a real estate agency?
Generally speaking, yes, and this will give you peace of mind! Our advice: buy your first properties abroad from reputable agencies or property managers!
The object's geographical location
This is a very important factor, depending on your rental objective. If you plan to rent out your property on a year-round or seasonal basis, check rental prospects carefully. You can, for example, search the local classified ads to check the vacancy rate, or use an application like «ebookers» to check the prices of seasonal rentals in the area you're interested in.
Development prospects in the area where the object is located
Is there public transport? How far away are health care services? Are there any shopping centers nearby? How far is the nearest airport? All these questions need to be answered, and you need to take them into account if you are to correctly value the price of your property purchase abroad.
Have a survey carried out before you buy
Abroad, standards and amenities are not always as high as in Switzerland. Once you've unearthed the house or apartment of your dreamsIt's a good idea to have a survey carried out. For this, it's a good idea to call in a building specialist. You can also call on a specialist in installations and home automation. That way, you're guaranteed to buy a property that lives up to your expectations.
Our conclusion on buying real estate abroad
Lica has extensive experience in financing real estate abroad. We can help you with a wide range of issues free of charge, so you can save on administrative procedures and avoid the usual pitfalls.
As with all types of financing, each borrower's current situation must be carefully analyzed, so that the best solution can be found without wasting time.
That's why we believe it's always better to invest a little more time at the beginning of the relationship to increase your chances of obtaining credit. That's why Lica always favors a personalized approach, and always takes the time to get to know its customers.
Now that you know the most important tips for making buying property abroadAll you have to do is make your request. With Lica it's simple, fast and efficient! That's right, you make your request online in less than 5 minutes, and then our specialized teams do the work for you. That saves you time and money!