*** Financing for the purchase of a property abroad (the USA in particular) *** Lately I get to read a lot, ask...
*** Financing to buy property abroad (US in particular) ***
I recently read a lot of questions and comments, in various forums, on the ways to take out a loan for the purpose of buying an overseas property. More precisely, the prevalent question is - can a loan be taken from the bank for the purpose of purchasing a property abroad?
I will try to put some order in things.
Assuming that most borrowers are like this at the outset, I will not refer here to the options of landlords or overseas banks, but only to the possibilities of bringing money from the country.
There are several main ways to raise capital from the various institutions:
1. Banks - you can simply go to the bank and ask for a loan. as simple as that. Of course, the better your profile in the bank and your bargaining power, the better loans you can get. You can threaten to leave the bank, you can really do it! Banks love the idea of a new customer transferring a salary to them, so they will be happy to give you good loan terms. You can also take advantage of membership in one or another organization with which the bank has an arrangement - attorney, high-tech, students, the teachers' union and more...
The bank will ask (if it does its job) what the loan is. Here you decide what to tell him and what not to tell him. At the end of the day, the bank will decide whether to approve and under what conditions. Remember that a banker has an interest in selling you the loan so ask him what you can say to give you the best terms.
2. A loan for any purpose against an existing property lien - if you own a property in Israel, it is possible to take a loan against it up to 50% of its value. For example, a property worth NIS 2 million, we have an existing loan (mortgage) of NIS 800, you can take another NIS 200 loan for any purpose. Here too, the bank will probably ask what the purpose of the loan is and accordingly decide what to approve for you. It is important to note that this type of loan will often be more expensive than a mortgage, but it can be spread over the same period of time (25-30 years) and thus reduce the monthly repayments.
3. Loan against training funds/pension/provident funds - if you have one of these, you can get a loan against up to 80% of the fund's value. The size of the loan and the interest rate vary depending on the type of fund, route and liquidity. Usually here you will find the most profitable loans! Especially when most allow you to pay only the interest throughout the period and at the end of the principal.
4. Social loans (P2P) - These are usually more expensive and less suitable for us.
There is no financial institution that will give you a loan to buy property abroad (at least I don't know). It's a semantic but important thing! The institutions will give you a regular loan and you decide to invest that money overseas. The bank does not take the property abroad as collateral, so if you do not have how to repay, it will go for your assets in the country! This is an important distinction and one has to be careful with the terminology.
In any case, before you go into the bank to apply for a loan, make sure you have how to repay it and that just taking the loan will not make you sleep less well at night.
To conclude, I will note that I am not a consultant, agent, banker or any other relevant degree. Everything I wrote is from my personal knowledge and experience with each of the options I have listed (except the last one).
Available for questions
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An age was striving for clarity and clarity for all the details.
Through the forum's website there is a connection to financing for Israeli investors in the US…
For the Protocol
Flip
multi
building up
and so
Hi we work at Philly. And we have a connection to the bank that gives investors loans from Israel.
Yotam Rozenbaum
Anyone who wants to put the money in a financial policy with an insurance company for leverage…
I can connect to my contact in Harel…
I realized that there is now an 0.1% discount on the management fee steps
Great post, regarding section 1… Everyone I know is applying for the loan for apartment renovation. Are there goals for money that banks like to hear more?
There is an explanation, simple and clear. Thanks
Thank you, Idan, for this important information.
Can you give orders of magnitude of terms (especially interest rates and repayment schedule), in your experience, in each of the tracks you specified?
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