Can I obtain credit for a good purchased abroad?
Italy, Spain, Portugal, Greece … countries where the sun reigns supreme attract French investors over 60 years, anxious to retire in a pleasant living environment. European capitals are also acclaimed for a purchase in second home: on equal budget, in Berlin or Vienna, a French buyer can become the proud owner of an apartment twice as big as in Paris. A great craze that must be mastered and properly orchestrated to avoid any disappointment .
What is the real estate setting of the destination country?
The law applicable to the sales contract is that of the country of purchase . Just as the civil rules relating to property, sharing, taxation … Note that if the property purchase is for rent, the provisions related to the collection of rent directly depend on the convention passed between the country in question and France.
Therefore, it is imperative to be well informed before any purchase . For example, in Thailand, foreigners can only buy the house. The property of the soil being reserved exclusively to the nationals of the country.
Note that some countries require an authorization and / or the payment of a tax, following a purchase on their territory. It is also necessary to collect information on the procedures related to the resale of the property in question: the procedures of repatriation of the capital, the transfer of the currencies …
In which country is it better to borrow?
To finance this purchase abroad, it is quite possible to go through a foreign bank . It is then a question of knowing well about the regulation around the credit. For example, some foreign organizations will not accept to finance you, if your income is collected in France; others will not allow early repayment before 10 years of borrowing, etc.
The advantage of favoring a French bank, for this type of transaction, is to benefit from the Scrivener on the protection of borrowers . Not to mention that its requirements for personal contribution are often much less important than those of foreign banks (30%).
If the protection of borrowers is better in France, the granting of a loan, to buy property abroad, is not easy. French organizations imperatively need a strong guarantee. Therefore, few banks agree to finance this kind of operations …
What guarantees can they ask?
As the French banks will not accept to build a loan on the basis of a mortgage on a property abroad, it must necessarily be able to offer them guarantees on French soil, to hope to obtain a loan offer:
– A mortgage on a property in France. Note that if it is already the subject of a mortgage registration, it is possible to take a second mortgage, under certain conditions.
– A pledge. Placing a guarantee of an investment contract can also provide the security sought by French banks.
If surety companies can lend a hand to the investors of a property on the French soil, most of them will not accept to finance a property abroad and the Credit Housing, in any case. On the other hand, a personal guarantee issued by a family member can supplement a guarantee.
If the purchase of real estate abroad can be attractive, it is absolutely necessary to have a professional to supervise this operation . The broker may ask his banking partners simultaneously. He will know which bank will be most likely to accept the file. He will be able to accompany you by bringing you the answers to the questions of the notary, but also to enlighten you on the regulations associated with this purchase.