Intesting In Properties Overseas
Hello. I and a small number of individuals are thinking of pooling
some money together to invest in some properties in Europe. Can
people point me to some resources (information, lawyers) that will
help us form the right entity for this kind of an investment? Also,
any information on financing for overseas properties will be welcome.
Do banks in the US provide mortages for overseas properties? If yes,
which ones. Is it best to seek financing with local banks?
Thank you in advance for any information.
Dimitris
I don't know the answer to your questions...but just call a few national banks and see if the lend for oversea properties...they should be pretty clear about whether they do or not, if they do, keep questioning them about rates/terms/etc.
HTH,
Brandon
Hey,
I presume you already know this, but Europe is a very different market than the US.
Purchasing houses is very, very different. For example, 20 year loans are standard not 30. Life insurance is required. 20% down is the norm. Most countries have some form of rent control. etc.
I am presuming you are based in the US, so currency fluctuations are huge headache for you. USD to EURO has moved all over the place in the last 14 months.
Based on the above statement, I would think it makes more sense to approach a European bank for money, than a US one.
Where are you looking in Europe?
thanks for your help. we are considering Greece, Italy and Spain.
hey,
That's a big area!
I presume you are going after the holiday villas. There are lots of cheap old houses for sale.
Are you based in the US or in Europe?
We are going to start off from Greece and you are correct we are going after vacation villas. I am planning to move there to manage them. Dimitris
I admire your bravery. I assume you know these areas rather well and that you are familiar with the societies and speak the languages.
Step one ,it is important that you have an attorney in each of the countries in which you will be purchasing. The attorney in Europe is a necessity. You must establish a really good relationship with him/her. Unlike attorney's in the United States, they are not deal busters.
A very interesting varient real estate activity in the areas you have picked is to rent out, (short time) to tourist groups. You furnish up, staff up and away you ****Must Reach Senior Investor status before posting URL's***he prices are high for this type of activity and if you hook well you should make a good return and the Euro is a good place to have your money at this time.
I have always thru out my life bought property wherever I went regardless of the circumstances. I bought a 9 unit in Paris while the Germans were occupying the place. I bought a house in England during the Battle of Britain. Best of all I bought a house up on Red Hill two stations out from Tokyo Central. 30 mat house Shibui. Just as the war ended and before Dug out Doug passed the law forbiding US forces from buying properties. I think his reasoning was that the prices were too low. He was so annoyed he had General Whitney send me down to Kumomoto. Guess what I did there in my off duty time? Became a partner in a classic country Inn! Go for it. Also as you continue to visit your properties, your languages will stay fluent and your outlook broad. Which reminds me I have a date. Cheers Lucius
Hello Dimitris is that the correct English spelling of your name?
I will also be buying European RE and have the same problem that you will soon face.
Me I will be buying a House in Germany and then one most likely in Slovenia.
Most here do not even know about US markets let along Europe.
I have looked into Germany. You know they are very rule followers BUT there is an underground group now on the WEB selling and buying their houses more so than here in the US even.
In germany the macklers ie RE agents charge up to 10% as RE commission so the Germans being frugal as they are have cut them out buy listing on the Web or more importantly City special classified as papers NOT THE LOCAL BIG NEWSPAPERS!!!
In Nuremburg the local RAG is called "ALLES" and you can buy almost anything including RE properties with NO COMMISSION!!!!
Also in Germany and in Nuremburg there is a group of underground or investors that buy and sell apartment buidlings to each other....they do not sell thru RE agents like here and how can they afford to at 6% commis
Hope that helps it you want any other info you can call and talk.
I can give u my phone number if interested.
By the way the coast of Crotia is very very cheap now and one can buy property right on the coast at almost nothing .......may buy a old Villa or house there next yr.
German RE us down 15%-22% in the last 2 yrs
SKI
When you are investing out of the USA you will find it better to take your Mortgages on your USA property and convert it into the currency of the country you are purchasing in.
This does two things you are not hindered by currency exchange problems,
And your property is unemcumbered to buy more property against in the country you investing in.
I posted advice about 18 tp 20 months a ago to invest in Australia now the Australian dollar has gone up 15%, so this means that you will get more in American dollars for the rent you receive than when you purchased the properties
The properties are woth more.
The properties in many parts of Austrlia have gone up on the local market 20 to 50% and in some areas 100%.
When you buy in US dollars currently you are still getting a 30% discount if you use American dollars.
[ Edited by commercialking on Date 09/28/2004 ]
I had posted something to this effect about a week ago. Most countries that enter into the european common market see a dramatic increase in RE prices over the first few years. In Hungary which is poised to enter houses were quite common in the 20-30k range with some being in the 10-20k range.
I lived in Europe for ten years and can speak Spanish and Germand (fairly well) and a smattering of other languages. I love it over there! and think it is a great place to live and do business if you can generate a sufficient income. In some places the RE loans go ou over 50 years instead of 30 like here in the US. Other places are strictly cash.
I think it better to take equity out of your US property and buy over there with cash. Frequently you can get a real deal.
Luck
[addsig]
Hi all,
GreatbReef can you please send me your aussie listings?
I already on a house and some land in Australia and want to invest in some more.
*Also if anyone knows about state sales for unpaid rates(pers property taxes here ) or sherriff 's 'courthouse carpark' sales, I'd like to know more.
Thanks for your time.
MrsCurly.