- Real Estate
Buying foreign property
While we are in the midst of a seemingly never-ending financial crisis in Europe it may seem a strange time to be advocating the purchase of European properties. But for financially secure Australian residents, and Australian expatriates, there has probably never been a better time in terms of property prices and currencies to contemplate buying in Europe. Arranging finance can be difficult, but it is not impossible and rates are very competitive.
Other parts of the world, most particularly Asia, still remain places where you need cash. Our sister website, Exfin, offers more detail on this subject, but suffice to say we are optimistic supporters of Australians purchasing overseas - both for financial gain and because, as beautiful as Australia is, there is more to the world.
You need however to ensure that you purchase property with your eyes wide open - you can get into all sorts of trouble buying property on a whim, having viewed it on a beautiful summer's day in Europe. Finance can't be taken as a given, and you need to consider both your tax position and the legalities. If you haven't got time to do this yourself - and buying "sight unseen" from a website is a total no-no - then appoint a professional to help you select and purchase the property. Provided below are an indication of current interest rates applying in each of the countries. These are only summaries, and special loan conditions may apply, such as requiring residency within these countries within the last five years or early repayment penalties.
% of Valuation
|United Kingdom||4.00% Variable||60%||Min GBP250K|
|4.28% to Jan 2015||60%||Min GBP100K|
|4.98% Tracker (Buy to Let)||70%||Min GBP100K|
|5.23% (Expat only) fixed for 3 Yrs||75%||Min GBP100K|
|France||3.00% Fixed for 6 - 10 Years||75%||Min Euro100K|
|3.40% Fixed for 15 Years||70%||Euro100K-1M|
|2.3% Variable for 10 Years||70%||Min Euro100K|
|Italy||5.15% Variable for 15-20 Yrs||60%||Min Euro 100K|
|3.15% Variable||60%||Min Euro 100K|
|5.3% Fixed for 10 Yrs||60%||Min Euro 100K|
|6.2% Fixed for 20 Yrs||60%||Min Euro 100K|
Clicking on the maps below will take you to Exfin and more details regarding the purchase of the property in the United Kingdom, France and Italy.