THE CLOSER WINTER IS CLOSER, THE MOST OFTEN WE LOOK AT THE AVENUE OF TOURIST COMPANIES WHICH OFFER THE REST ON THE SEA COAST, ON THE ISLANDS. CONSCIOUSLY, IF YOU HAVE BEEN DREAMED AT TIME: THERE WOULD LEAVE THERE FOR LONG AND BETTER FOR EVER …
Now it is quite realistic to do this: the islands are sold both as a whole and “piece by piece”, ranging from several tens of thousands of euros to tens of millions of dollars. At the same time, the buyer, who has not enough money to BUY A HOUSE on the island of his dream, is offered to issue a mortgage loan. However, each country has its own nuances regarding payments, terms of issue, mandatory procedures.
On the European islands you can find a mortgage program loyal to borrowers and apply for a CREDIT with a minimum of formalities. But the farther into the tropics, the more difficult it is to find a bank and convince it to give you a loan. A significant role in this is played by the fact that sellers of REAL ESTATE, for example, in the Bahamas or Cayman Islands, are still oriented to wealthy buyers willing to pay at least half a million dollars in cash for apartments and rarely offer clients convenient mortgage programs.
It is considered that the mortgage by border is much more liberal than in domestic banks: the rates are lower, the payment period is shorter, the conditions for receiving are simpler. This is true, but it should be borne in mind that conditions for non-residents may differ from the conditions offered to citizens of a given country. Finally, there are countries in which it is impossible to obtain a mortgage without a citizenship or at least a residence permit. As a rule, in most foreign banks the down payment is 30%, the term of CREDIT is 15-20 years.
Mortgage in the Old World
The unofficial leader on the island list is Spain, with its traditionally liberal mortgage. According to the general opinion of experts, it is in Spain and the UK that our compatriots are most likely to get a mortgage loan. This is due not only to relatively simple and convenient credit conditions, but also to the fact that local banks are already accustomed to working with borrowers from Russia. Russian buyers have already formed their own segment in the local real estate market, so this kind of transaction is carried out for Russian citizens quickly and painlessly.
The amount of loans, as a rule, is 50-60%, sometimes it reaches 65-70% of the estimated value of the property. It is worth considering that the assessment is carried out by an independent appraiser at the request of the bank.
Usually the Spanish bank offers to CREDIT a borrower for a period of 10 to 30 years – depending on the age of the borrower with the possibility of early repayment. The loan is granted at 5-6% per annum for the first 6 months, sometimes for the first year. Then the bank will annually adjust the interest rate on the loan, depending on the change in the European interbank interest rate EURIBOR.
The conditions for the correction of the CREDIT rate are recorded in the loan agreement. As a rule, loans are repaid with monthly payments, sometimes there are quarterly repayments. It is necessary to take into account that the size of the monthly payments on a mortgage loan in Spain cannot exceed 40% of the amount of the monthly income of the borrower.
It is somewhat more difficult to get a loan to buy property on islands belonging to Greece. Here and before, the conditions were less liberal than in Spain, and after the crisis, banks tightened their policies towards non-residents even more.
The loan amount can reach 70% of the estimated value of real estate, issued a maximum of up to 35 years. However, it is worth noting that under current conditions it is extremely difficult for a resident to fall into this most convenient framework.
The mortgage rate in Greece is about 4-6%. Additional costs will be approximately 8% of the value of the property: 5.5% will go to taxes, 1% is relied on by the notary, 1.5% – by the buyer’s lawyer. Payment of all of the above occurs already at the final stage of the purchase process, when the title deed is transferred to the buyer.
Another feature related to the registration of real estate in Greece: some islands, such as Crete, are included in the border zone, and, according to Greek law, non-residents who buy property on these islands are subject to verification by the Ministry of Defense.
Also in Greece, as, indeed, in Spain, a bunch of “developer-(seller) -creditor” works: a company selling real estate deals with settling all the problems associated with obtaining a mortgage loan. And if in liberal SPAIN you can easily get a loan without the help of intermediaries, in the case of the Greek islands, many buyers prefer to rely on the assistance of the seller company. Separate MEDIATORS also guarantee large loan sizes with a minimum interest rate. However, in this case, self-search for low-cost real estate will have to be forgotten – companies usually sell business-class properties at appropriate prices.