A lot of people would want to acquire properties outside of their home country. Primarily, it becomes a form of investment. But it can also be as a retirement home, a place to stay for their children that are studying abroad, or a holiday getaway. But, even if one had the financial capability to purchase property internationally they would still have to be determine a lot of factors in the how and why of buying property abroad.
If it is for investment purposes, one of the most important factors to consider in buying property abroad is by anticipating the beneficial appreciation in the location where one plans to invest. By doing this, one can increase their financial rate of return in the long run.
For those that access their funds through international financing companies, this is utterly essential for them. Knowing which company that would provide the best options for them is equivalently important. Other than the traditional banking sector, there are companies that have established themselves for the past years.
This kind of banking sector is mostly found in the United Kingdom. They have been noted to be offering better services and client friendly terms on an international scope. They are able to connect would-be borrowers with sources of capital and private lenders. Some of these companies also have the capability to transfer large funds at a much faster rate and at an affordable rate. So buying real estate properties is convenient if your bank gives you the kind of services mentioned earlier.
But the financial instutition is not the only thing to consider when you want to buy real estate properties abroad. Take for example in Netherlands, one has to abide by the provisions provided by national law. A mortgage advisor at ABN AMRO, Susan Mulders, says that one has to find a house first before applying for a mortgage. There are specific rules to be followed even in opening a bank account or even availing of insurance. She adds that all of her co-workers are experts on expats, but each has their own specific field of expertise.
Being able to communicate at a language that their client understands and giving expert advice on what the rules are in the Netherlands exactly is very important. This is why the company employs people coming from different countries such as the United States, Russia, England, India, Germany and France to name a few. One example that surprise expats is the fact that a client can actually borrow 103% of a property's market value. While in other countries, like in England, one must first be able to deposit a considerable amount before they can raise a mortgage.
Another simple fact that would help one in knowing how and why of buying property abroad is the knowledge of the new mortgage documents. The Consumer Financial Protection Bureau simplified their existing lending forms effective early October. There were a few, yet essential changes made about the new disclosure forms. Before, one needed to fill up four forms composed of the Good Faith Estimate, Truth-in-Lending Act statements, HUD-1, and TILA statements. Now, they are only required to fill up only two forms comprised of the Loan Estimate and the Closing Disclosure.
The Loan Estimate provides a list about the estimated amount of money that one must have in order to acquire your home purchase. This includes closing costs, required down payment less client deposits or seller credits, added credits or adjustments. It also aids a client in comparing loan offers from various mortgage lenders in an easier manner. It now provides data of whether your interest rate is fixed or adjustable, the amount of your monthly payment and a cost computation of your loan for the next five years. The form also provides an outline of the origination charges of each lender. This includes the underwriting and application fee as well as the points.
As for the the Closing Disclosure form, it provides closing costs of the following:
1. those that cannot increase such as lender fees and services
2. that increases by as much as 10% such as lender-required third-party services
3. That increase by any required amount such as title or homeowners insurance
These are but a few tips that one can use when wanting to learn more about how and why of buying property abroad. Seeking expert advice of a certain country from those that are fully knowledgeable and licensed by the government to aid foreign real estate investors should not be taken for granted.
