Financing for foreign properties
We also support you if you want to buy and finance a property outside Germany. We are currently focusing on Spain, Portugal, France and Denmark. If your property is located in another state, we can currently only provide you with coverage through a sog. Raise capital with a property in Germany as collateral.
Who wants to buy and finance a real estate in Spain, France, Portugal or Denmark, must adjust to completely different conditions and expirations than in Germany. If you think that everything is easier there than with us, you are mistaken. Especially the process of buying real estate has some stumbling blocks that you should know about.
When it comes to financing, on the other hand, differences to Germany are hardly noticeable. As in this country, the Spanish banks, for example, look very closely at the value of the property and the personal income and asset situation (credit rating). There one is even stricter than in Germany, because Spanish banks finance in principle maximally only ca. 80% of the "reasonable real estate value (for pure vacation properties even only 70%). This property value is estimated by local appraisers and is often very much below the asking price. In addition, Spanish banks pay strict attention to the sog. Debt level of their clients. Those who spend more than 30% of their net income on real estate financing and current loans (incl. leasing) will not stand a chance with Spanish banks (even with a low loan-to-value ratio).
The procurement of all necessary documents is also a story in itself in Spain. Who thinks that German banks are complicated, does not know the Spanish banks yet!
However, we are not only dependent on the local banks, in Spain, Portugal and France we can also finance through -very few- German banks. But even here there are high hurdles, especially with equity, because this way we can real estate only up to approx. Finance 60% of the value of the property. Who wants to finance a real estate there up to 100%, should accept the fact that this becomes nothing. The offer of German banks, savings bank, building societies, etc., financing real estate abroad has always been quite thin on the ground. In the past few months, however, some providers have withdrawn from this field of business.
What are the conditions for financing real estate abroad??
Apart from a few subtleties, the financing conditions are not so different from those in Germany. Unlike a few years ago, for example, loans with a long fixed interest period are also possible (max. 30 years). With the interest rates there is quite a mixed picture, but even there you are not far from the dream interest rates in Germany.
Important: in Germany it is common that we as financing intermediaries are ultimately paid by the banks. This is mostly different outside Germany. Here you can incur costs for our consulting and mediation activities. Over it you become from our expert however exactly infomiert (surprising calculations are impossible!).
Alternative capital procurement?!
By the term capital procurement is meant the purpose of a real estate loan. The loan is intended to provide capital for free use. It concerns however a completely normal bank loan and no witch work. The conditions do not differ from a loan, for example, for the purchase of a property in Germany.
With this financing variant the loan must be secured over a real estate in Germany (registration of land charges). Borrower and real estate owner should be identical.