Financing an Overseas Property

I

Investmind

Registered User
Messages
27
Hi there

An opportunity has arisen in india to purchase a 2 bed aprt

My problem is i can only get a top-up of 29k on my original mortgage

which I have on my residential aprt in Ireland.

What are my options of getting this 50k elsewhere as banks dont want
to give me a mortgage for this property out foreign eventhough they'd have no problem if I was buyin the same in Ireland..

Are there other banks out there I dont know??

(I wanted the 50k on interest only for around 3 yrs and then sell on my
the indian property at hopefully a profit..)
 

The only bank thats going to give you a mortgage in India is a bank in India. As a foreign bank cant go into india and reclaim the property if you default. You need to contact a few banks over there and see do any of them offer mortages to foreigners
 
Which part of India are you thinking of buying in, and do you have any ideas on your exit strategy? I notice you say 'hopefully' a profit - what will you do if its value has dropped in 3 years? Do you have guarantees that it wont, I wonder - and how well have you researched the market?
 
Investmind said:
www.kuveraproperties.com/

Have a look at this link
Click to expand...

If I was being cynical the 15-20% discount thing is just a pitch. Its very easy to give a 20% discount as a developer if ive already factored that into the price. That company will also be taking a commission on the sales, I would assume a minimum of 5%. Not too many developers I know who are going to give out 25% of their bottom line.
 

This is more of it. The reason the bank wont give you more than 29K is simply you cant afford any more. As far as borrowing in India is concerned you need to have a very low LTV - I would recommend no more than 60%. You also have to listen to the Indian banks. If they feel they cant lend to you you need to ask why? Local banks are still the best judges of local markets. Always use a large bank. You also need to evaluate their exposure to the disastrous US market.
 
You must log in or register to reply here.
Menu
Log in
Register