How to buy property abroad with a personal loan?

Buying property abroad with a private loan is an attractive prospect for many investors and private individuals. Whether you're looking for a second home by the sea, a rental apartment in Thailand or a country house in Tuscany, there are plenty of opportunities to explore. But how do you finance such a purchase? For Swiss residents, private credit offers an advantageous solution.

What is private credit?

Private credit, often requested by private individuals in Switzerland, is distinguished by its ease of obtaining. Unlike other forms of credit, it is not directly linked to the property. This means that the buyer has the freedom to do what he or she wishes with the funds, offering great flexibility in the purchasing process. Before submitting an application for buying a property It's important, however, to check that you meet all the required criteria. Our article « Which documents are required to obtain a loan? »We can help you prepare your application.

Why opt for a private loan to buy property abroad?

When considering buying a property abroad, financing is often the main challenge. Swiss private credit is an increasingly popular option for the following reasons:

1. Attractive rates: One of the great advantages of Swiss private credit is the competitive interest rate, making long-term financing more affordable.
2. Flexible duration : With a typical term of 120 months, borrowers benefit from an extended repayment horizon.
3. Financing from Switzerland : Even if the property is abroad, the financing is carried out from Switzerland, offering a degree of familiarity and confidence in the process.
4. Tax deduction : Interest on private credit is tax-deductible in Switzerland, providing additional savings.
5. Speed of purchase: With no direct link to the property and no need for a property valuation, the buying process is accelerated.
6. Freedom of use : With no restrictions on the use of funds, buyers can negotiate better purchase terms or explore various real estate options.

However, it should be noted that the maximum amount to buy a property abroad with a private loan is usually CHF 400’000.-, which can limit the scale of the investment.

Countries of interest for real estate investment

With a world of opportunities, it can be hard to decide where to invest! Here's some promising countriess to buy property abroad with a private loan. This is because of their economic growth, political stability and potential rental yields:

1. Portugal : The Golden Visa program has attracted many foreign investors. What's more, property prices in Lisbon and other tourist areas have been rising steadily.
2. Greece : Similar to Portugal, Greece offers a visa program for investors. Athens, in particular, has seen an increase in real estate investment.
3. Vietnam : With rapid economic growth and increasing urbanization, Vietnam has become a popular investment destination.
4. Mexico : Destinations such as Tulum and Playa del Carmen have attracted many foreign investors due to their tourism potential.
5. Turkey: Istanbul and other major cities have seen an increase in real estate investment, thanks in part to government incentives.

However, it is essential to note that buying property abroad with a private loan can involve risks. It is therefore crucial to do thorough research and consult local experts before making any decisions. Lica can help you obtain your private credit but you still need to take care when purchasing your property!

Before buying a property abroad with a private loan, there are a few things you should consider!

Buying a property abroad with a personal loan is certainly an attractive option, but it requires careful thought. Here are some aspects you should pay attention to before embarking on your purchase:

1. Land register Find out how the land registry works in the country concerned.
2. Associated costs As in Switzerland, you'll have to pay various fees when you purchase your property.
3. Tax system local taxes and tax treaties to avoid double taxation.
4. Management by a real estate agency For greater peace of mind, we recommend buying from reputable agencies. You can also entrust rental management to an agency to avoid worries.
5. Property location location is essential if you plan to rent.
6. Have the property appraised The standards in foreign countries differ from those in Switzerland. An expert appraisal can help you avoid unpleasant surprises.

Although buying property abroad on private credit offers an excellent investment opportunity, it's crucial to approach this decision with caution and preparation. Thorough research and careful planning can help you avoid common pitfalls and maximize the return on your investment.

Why use Lica's services to buy a property abroad with a private loan?

Lica is your ally! We take a close look private credit offers available to direct you to the best option. We are at your side from the search for financing to the actual purchase of your property abroad. Lica offers you free of charge :

• Identify the financing options best suited to your situation; ;
• Personalized support to make your project a reality; ;
• The know-how of a multidisciplinary team; ;
• The best financing offers on the market; ;
• The highest approval rate in Switzerland.

Unfortunately, Swiss banks do not generally finance real estate abroad. However, some foreign banks do, but the process is often complex. That's why it's crucial to be well informed and prepared. What's more, obtaining credit in a foreign currency can present risks linked to exchange rate fluctuations.

Our conclusion on buying a property abroad with a private loan

Buying property abroad with a private loan is an ambitious undertaking that can offer benefits as great as its challenges. Opting for a financing through a Swiss private loan can therefore bring a series of benefits for the borrower. The main attracting private credit lies in its flexibility. Without having to allocate the loan directly to the property, the borrower benefits from considerable leeway. This freedom is further enhanced by competitive interest rates and tax benefits, including interest deductibility.

However, as attractive as this method of financing may be, there are aspects to it that should not be overlooked. It's vital to immerse yourself in understanding the real estate market in the target country, to guard against the risks of currency fluctuations, and to think about property management, especially if it's done remotely.