Mortgage finance & currency exchange two elements to success when buying property abroad
Mortgage finance & currency exchange two elements to success when buying property abroad
By: Nicholas Marr
Buying property abroad can make even the most seasoned property investor lose their financial sense especially when faced with an absolute bargain. Overseas property buyers who are in search of a second home abroad need to be aware of the ‘wow' factor when searching for property abroad. Overseas property can be considerably lower priced than an equivalent property at home. Many overseas property markets are set to make short term gains and some investors rush in without taking full consideration of all the financial aspects of buying a home. Buying a property overseas is more than just the price of the property.Failing to plan is planning to failLet's get to grips with a simple but essential element in financing property abroad. Setting your budget. You know how much you can afford and you must be realistic in finding your actual budget. Take into consideration, legal costs, maintenance charges, money transfers, mortgage repayments, flights , accommodation and insurance costs to name but a few. Ask yourself if your mortgage rate went up would you be able to sustain the payments. Assume the worst with occupancy rates for a rental investment property and arrive at your bottom line. Once you have found your budget stick to it!Overseas mortgages obtaining the best product will save you thousandsOverseas mortgages are a specialised field and it is an area that requires sound independent advice. The overseas buyer has to look at the options available. It is best to examine this with an independent financial advisor with expertise in the area of overseas property.Raising finance for to buy property abroad it's your choice:How to raise finance for your purchase is down to each individual's circumstances each method has its pros and cons.1.) Raising finance at homeRe mortgaging an existing home to release equity is a popular option .Many overseas property buyers live in countries in which the housing markets that have left them with equity in their own homes. The UK property market is a good example of this many people have benefited from steady house price increases leaving them with small mortgages and large amounts of equity.2.) Using a local overseas mortgage lenderMany emerging markets are getting to grips with overseas buyers and can now provide a real alternative for the overseas property buyer.3.) Securing an overseas mortgage with an international mortgage providerInternational mortgage providers can provide mortgages in a whole host of countries. The choice of countries is increasing as the demand for overseas mortgages develops. International mortgages advisors tend to be knowledgeable in this specialist field and provide overseas buyers with a real alternative to other financing optionsCurrency transfers an essential element in financial planning.Planning your money transfers keeps you in control and lets you get the best out of your money. This element is often ignored by those buying property abroad and can cost you dearly. But how do you plan for transferring money abroad at a rate of exchange that you are happy with? Currency brokers can book good exchange rates for long periods in advance therefore protecting the overseas buyer from the uncertainty of the currency markets. Exchange rates change constantly and 10% fluctuations in a relatively short space of time are not uncommon. This could effectively increase, by 10% or more, the sterling amount that you will have to pay . Specialist currency dealers will normally offer you a better rate of exchange than your bank and provide a more personalised service.It is clear that obtaining the best overseas mortgage advice and using a currency broker are essential elements when buying a property abroad
Article Source: http://www.articlerich.com
Nicholas Marr is a lifetime property investor and CEO of Marr International Ltd a UK based property marketing company that is responsible for one of the worlds leading overseas property web sites at www.homesgofast.com .
