Opportunities to buy property abroad are attracting more and more people who want to invest in a low-cost property. There are many reasons for this: to diversify your real estate portfolio, to enjoy a more pleasant climate, or to seize an investment opportunity. In all cases, financing the purchase is a crucial step. That's where private credit comes in, for a real estate purchase abroad. In this article, we'll tell you everything you need to know about this subject, and how to optimize your chances of obtaining a private loan. private credit for buying property abroad.
What is a private loan for a property purchase?
A private loan for a property purchase is a type of loan granted by financial institutions to finance the acquisition of a property. 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 can vary from country to country. With a personal loan, This means you'll have immediate access to the funds you need to buy the property of your dreams!
Why choose a private loan for a property purchase abroad?
Three reasons that will convince you to take advantage of private financing for your property purchase.
- Flexibility: Private credit offers greater flexibility than traditional mortgages. Eligibility criteria are generally less stringent. It is also possible to negotiate loan conditions according to your specific needs.
- Speed: Obtaining a private loan for a property purchase abroad is much quicker than a traditional mortgage. This can be particularly advantageous when you need to seize an investment opportunity quickly.
- Freedom to buy : Once the funds are in your account, you are free to buy the property you want. Under no circumstances will you have to justify your purchase. Unlike mortgage financing, you won't need a real estate appraisal before making your purchase.
There's another important point that makes the private credit solution so advantageous. This is the fact that you can cancel your property purchase at any time. In fact, a private loan can be repaid at any time, free of charge. This, according to the Consumer Credit Act (Art 17 LCC).
Steps to obtain a private loan for a property purchase abroad
Evaluate your ability to repay your financial needs
Before you start looking for a private loan for a property purchase abroad, it's important to assess your financial needs. Take into account the total cost of the purchase, ancillary costs (notary, taxes, etc.) and your ability to repay. Once your budget is clear, you can look for the right intermediary.
Choosing a trusted private credit broker
It is essential to select a renowned private credit broker experienced in buying property abroad. Take the time to read customer reviews and check references. To obtain a private loan for a property purchase abroad, you'll need to compile a complete file. This should include your personal, financial and professional details. Be sure to provide accurate, up-to-date information to help your advisor prepare your file. A private credit broker will be able to assist you every step of the way. the process of obtaining your loan. They'll help you find the offer best suited to your needs. Brokers often have a network of financial partners and local expertise. This will make it easier for you to find and negotiate the best terms for your private loan to buy property abroad.
Receive the funds and buy the property of your dreams
Once your private credit agreement has been signed, funds can be released and transferred to your account within 14 days. Make sure you follow your broker's recommendations and that all prerequisites to release the funds. The advantage of a personal loan is the speed with which you can benefit from the funds. So you won't miss out on any real estate opportunities!
Three tips to optimize your chances of obtaining a private loan for a property purchase abroad
👍 The importance of a well-prepared dossier
A complete and well-prepared file will facilitate the analysis of your private loan application for a property purchase abroad. Don't hesitate to ask for professional help to ensure that all the required documents are present and in order. Financial institutions are more likely to grant private loans for property purchases abroad to borrowers with a solid profile. Visit improve your chances, If you have any questions, contact Lica immediately. Our financial advisors will study your credit history to prepare a solid file!
✌ Anticipate additional costs
Buying a property abroad entails additional costs. These can include taxes, notary fees and currency conversion charges. Take these costs into account when drawing up your budget and your private credit application. Buying a property abroad involves uncertainties, particularly in terms of exchange rate fluctuations and changes in the real estate market. Make sure you have a financial safety margin to cover any unforeseen circumstances. Don't hesitate to ask us for advice when applying for a private loan. We have extensive experience in buying real estate with a personal loan.
🤙 Do not use multiple brokers
In fact several private credit applications at the same time can have negative consequences. This is because every credit application is registered with the ZEK credit center. Too many applications in a short space of time can be interpreted as a sign of financial distress. What's more, one or two rejections recorded in succession in the ZEK power plant could even completely block your future steps. It is therefore strongly recommended that you make only one application at a time to a reputable private credit broker.
What are the best regions in which to buy property abroad?
Choosing the right region to buy a property abroad depends on a number of factors. You'll need to take into account your budget, your investment objectives and, above all, your personal preferences. However, here are a few regions that may be attractive to those wishing to buy property abroad using a private loan:
- Portugal : The Portuguese property market offers affordable prices and high potential rental yields. This is particularly true in Lisbon, Porto and the south of the country.
- Spain: Property prices in Spain have fallen in recent years, offering investment opportunities at attractive prices, particularly 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, particularly in cities such as Miami, Orlando and New York.
- Thailand : The Thai real estate market offers affordable prices, a low cost of living and strong rental yield potential, particularly in the cities of Bangkok and Pattaya.
It is important to note that buying a property abroad can involve risks, and it is essential to thoroughly research local regulations and laws before making a decision. In addition, it is advisable to consult a real estate investment expert for advice on the best investment options and potential risks.
Our conclusion on private credit for buying property abroad
Obtaining a private loan for a property purchase abroad is a crucial step for anyone wishing to invest or enjoy a vacation home. However, with a methodical approach and the help of experienced professionals, You can optimize your chances of obtaining a private loan tailored to your needs and your real estate project.
At Lica, we specialize in private credit brokerage in Switzerland, and we'll be with you every step of the way for your real estate purchase abroad. Contact us today to benefit from our expertise and our network of financial partners to find the private loan for a property purchase abroad that suits your needs.