Options For Financing Property Overseas

5 Best Options For Financing Property Overseas

Five Options For Financing Abroad
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You have probably heard all the virtues of living and investing overseas many times. And, indeed, there’s an overwhelming case in favor of it.

But there’s a huge gap when comparing buying property abroad with buying property back home: financing. Without the ability to finance, our options for buying abroad are limited. And most people believe financing in a foreign country is out of the question.

But, in fact, you can finance abroad. Today I’m going to discuss five options that may be available to you when buying overseas.

You won’t find all of these options available in every situation, but they’re all worth considering. Let’s take a look at each financing option in turn.

Bank Financing

This one is hardest to find worldwide, but it’s often the best option where it’s available. Here are four things to keep in mind:

  • Generally speaking, loan-to-value ratios will be lower than you’re used to. The best I’ve seen personally is 75% of value, and the lowest was 50%.
  • Terms will be shorter, with 30-year loans fairly unheard of.

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Beachfront Condo With Guaranteed US$15,000 Annual Return

After 14 years of traveling and scouting properties in 17 different countries, there are not many countries left where I try to combine a real estate scouting trip with a vacation… at least not on the second or third trip.

But I just realized this morning that we’ve vacationed in Nicaragua four times now. Almost every time I went to Nicaragua on assignment, we’ve combined it with a vacation.

And it’s hard to explain the attraction.

Nicaragua offers some of the world’s largest lakes… a pristine Caribbean coastline… beautiful Caribbean islands… cool mountains… and hundreds of miles of sandy Pacific beaches.

But it’s more than that. And it’s more than the super-low cost of living, or easy residency, or any of those practical items.

Nicaragua and its people also convey a welcoming feeling—a comfortable feeling—that I don’t quite find anywhere else. No matter how many times I go, I look forward to getting there… and I’m sorry to leave.

A month ago, we talked about an area that offered reasonably priced beach properties, in Nicaragua’s Masachapa. This is one of my favorite beaches in Nicaragua, and the presidential beach home is located there.

But Masachapa, and its lifestyle, are not for everyone.

This is because the properties in Masachapa are in a rural, local seaside neighborhood rather than Continue reading

This Xalapa house, for US$147,000, is a contemporary artist's dream

Xalapa: Elegant, Non-Gringo Mexico Starting At US$38,000

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Since my first visit to Mexico’s Xalapa in 1998, it’s been one of my top choices in Latin America and my favorite in Mexico.

The city is an extremely rare blend in Mexico of modern conveniences: a rich, traditional, and educated Mexican culture and the energy and spark of a university town, without the cultural influence of American expats.

And you can own a property here in Xalapa starting at less than US$38,000.

Xalapa (pronounced hah-LAH-pah) is a fairly big city, with about a half-million residents in the town proper and more than 800,000 in its metro area. Also spelled Jalapa, it’s a town of rolling hills, with an elevation that runs between 4,300 and 4,800 feet (about 1,300 to 1,450 meters), depending on where you are in town.

The hills around town provide for some great views from the properties here. And the elevation provides for pleasant temperatures that average about 15 degrees cooler than the nearby Gulf Coast, some 35 miles away as the crow flies.

The average daytime high varies between 72 and 82 degrees, with January being the “coldest” month and May the warmest. Most rainfall occurs between May and October. June and September are the wettest months, while December through March are the driest. There is sufficient rainfall to keep the town and surrounding area green and lush. Morning fog is common in the winter.

Capital of the state of Veracruz, Xalapa is home to about two dozen universities, the most prominent of which is the Universidad de Veracruz. As anywhere, the large presence of intelligent young people gives the city a youthful, vibrant energy. You may well decide to buy a full- or part-time retirement home here, but don’t expect the feel of a retirement community. If you’d like to get a feel for what it looks like, have a look at this two-minute video of Xalapa put out by the city. Continue reading