Buying property with leverage used to be a common thing. General financial instability and the world crisis made it more difficult. But there are still places that offer good conditions for investors.
Bank financing is a great tool for real estate investors. Getting a leverage can be very helpful if you do not have enough of your own capital for investment. Just like any other financial operation, this one carries financial risks that you need to keep in mind. Having a plan B is a necessity, if you don’t want to lose the whole deposit and even more. Also, in case of a failure it will stay in your credit history.
If you are a foreigner, the amount of complications is growing. Because being a local citizen gives some guarantees to the bank and makes it less possible to avoid responsibility. But foreigners can just leave both the leverage and real estate property, if something did not work out. And banks are aware of such cases. That is why they make financial leverage either impossible or difficult to get for a foreign citizen. And this is just the truth we have to live with.
Nevertheless, this is not the end of the world. The Live and Invest Overseas prepared a list of three countries that allow foreigners to get leverage for real estate purchasing. But each one of them has different kind of terms.
Panama
Panama City, Panama
Although, Panama’s economy seems to have a growing bubble and banks give credit cards almost to everyone with an account, things are not as simple as they used to be for foreigners. 20 years ago 20% of a deposit was enough to get a loan. Times are changing.
Nowadays, you need to have at least 30% of a deposit and local life insurance with the name of a local bank as a beneficiary. Your interest rate will also be 1% higher than for citizens, which is a universal local policy for a second house mortgage or commercial realty. That makes it about 7%. If you convince the bank that this is your main home and you plan to live there, you can avoid this extra present.
Due to political climate, any bank operation is even more difficult for American buyers and investors. It is possible for them to find a suitable bank for getting leverage, but harder because of constantly changing terms of each bank.
This is one of the most popular countries for expats and investors. And accessible mortgage for foreigners is one of the main reasons. The margin does not exceed 2%.
There are t wo things you should consider beforehand. First, candidates with passive income must provide more documents that those with active sources. Second, don’t forget to add unexpected circumstances to your purchase and sale agreement if you plan to get financing from the beginning.
In general, up to 60% of foreign investors get a loan in Portuguese banks. Just do not forget to check all required documents. Better request helps of agencies familiar to the local market.
Residential property for sale in Portugal:
4 100 000 €
Penthouse in Oeiras, Portugal
470 sq.m645
Online ViewingRemote Transaction
Premium penthouse with 4 bedrooms and a private pool in Algés.
Located in one of the most elite areas of Lisbon, Algés.
The apartments have a high level of building materials.
The private area is 278 m2 , distributed as follows:
- living room - 55m2;
- dining room -19m2;
- kitchen - 17m2;
- 4 suites (20 m2, 23 m2, 27 m2, 26 m2)
-...
Amber Star Real Estate
690 000 €
Villa in Vila do Conde, Portugal
325 sq.m746
Online ViewingRemote TransactionCredit
The property is in a privileged location with fantastic views of the city, the Atlantic Ocean and the river.
It is located in the quiet area of Vila do Conde, close to beaches, shops, services and transport!
The villa consists of 4 bedrooms and an office, totaling approximately 325m² and is situated on a 702m² plot. The villa has...
Amber Star Real Estate
1 152 900 €
Apartment in Lisbon, Portugal
144 sq.m322
Online ViewingRemote TransactionCredit
Great 2 bedroom apartment in Baixa Pombalina of 144 m2, consisting of:
- Living room;
- Kitchen;
- 2 Bedrooms;
- 2 Bathrooms.
Amenities:
- Built-in and concealed air conditioning system for heating and cooling;
- Doors with JNF, OpenSpace, Saheco and GRASS hardware;
- MACIÇA natural wood exterior windows;
- HAGER stereo...
Amber Star Real Estate
720 000 €
Villa in Cascais, Portugal
350 sq.m533
Online ViewingRemote TransactionCryptocurrency paymentCredit from 4.5%Rental property
How to buy a villa in Portugal for just €144,000?
It's simple! You can purchase a villa with a price tag of €720,000 for only 20%, which amounts to €144,000, and the remaining amount will be covered by the bank until June 2024 through your mortgage. In the future, your mortgage payments will be covered by tenants.
So, you...
IP Kotlyarova E.I.
1 390 000 €
Villa in Faro, Portugal
380 sq.m534
Online ViewingRemote TransactionCredit
Luxury 3-bedroom duplex villa with swimming pool and private garden, located near Faro Airport, with high-quality finishes.
The condominium has a privileged location near the capital of the Algarve, with excellent infrastructure (services, shops, schools, hospitals, etc).
The villa has two floors and is distributed as follows:
- Entrance...
Amber Star Real Estate
720 000 €
Apartment in Lisbon, Portugal
76 sq.m322
Online ViewingRemote TransactionCredit
Luxury apartment with secure private residence, contemporary architecture and stunning views over the River Tagus.
This luxurious 2-bedroom apartment has a total gross floor area of 95m², including an exclusive terrace, a storage room and 1 parking space.
The location is ideal for those looking for practicality and comfort. With buses...
Located in the center of Macedo de Cavaleiros.
It consists of a hall, a living room, a furnished and equipped kitchen, a pantry, a bathroom, a utility room and a balcony. 2 bedrooms
The house was built in 1994.
Portugal Subtil
230 000 €
House in Obidos, Portugal
130 sq.m642
Rental property
The plot is 310 m2. The house is 130 m2
On the ground floor there are 2 spacious bedrooms, one of which is a suite, 2 bathrooms (one of them is a suite), a living room, a spacious kitchen with dining area and a pantry. On the upper floor (attic) there are 2 bedrooms and a storage room (ready to install another bathroom).
On this floor,...
Portugal Subtil
2 800 000 €
Manor in Barcelos, Portugal
65
Residence
The real dream property, in the north of Portugal, in the beautiful city of Barcelos - famous for its history as well as for the Handicrafts and the world-famous "Galo de Barcelos" - a small farm facing the Cávado River where the singular beauty of nature is always present. The single-storey granite villa, of timeless trace, with its wavy garden...
Mercury Group
625 000 €
Flat in Vila Nova de Gaia, Portugal
32
Residence
Apartment of typology T2, with terrace and 2 parking spaces in thering high standards of constructive quality and environmental and energy sustainability, the MG7 apartments are the perfect option to live, while enjoying the harmonious landscape over the Douro River and the city of project was developed in order to meet the unique image of the...
Mercury Group
3 500 000 €
House in Vila Nova de Gaia, Portugal
54
Residence
Detached house of typology T4, with 4 solar fronts, next to Foz do Rio villa is inserted in a new private condominium that is part of a development with a total area of 25 hectares, with a unique architectural identity and an exclusive phase of the project consists of lots for the construction of single-family houses, with semi-detached villas,...
Mercury Group
540 000 €
Flat in Lisbon, Portugal
70 sq.m21
Residence
A unique project in the new and award-winning riverside neighborhood of thetments where the unique architecture, the quality of construction and the premium finishes combine with the maximization of space, luminosity, energy sustainability and acoustic and thermal comfort throughout theted in front of the Tagus River and a few minutes from the...
Mercury Group
1 190 000 €
Flat in Lisbon, Portugal
196 sq.m43
Residence
A unique project in the new and award-winning riverside neighborhood of thetments where the unique architecture, the quality of construction and the premium finishes combine with the maximization of space, luminosity, energy sustainability and acoustic and thermal comfort throughout theted in front of the Tagus River and a few minutes from the...
Mercury Group
520 000 €
Flat in Algarve, Portugal
43
Residence
Located in one of the quietest areas of Portimão, this new condominium is the ideal place to live, just 5 minutes from the center of Portimão and development consists of two lots, both with communal pool and all apartments have indoor parking space and largeosed of apartments of typology T2 and T3, with generous areas, which excel in modern...
Mercury Group
550 000 €
Flat in Algarve, Portugal
82 sq.m32
Residence
High standard beach resort, exclusively designed and tailored for discerning customers looking for personalizedaimed for its year-round Mediterranean climate, the Algarve is one of Europe's best beach destinations and a world-renowned golf residents from all over Europe, and activities 365 days a year, it is also one of the main regions of...
Mercury Group
2 750 000 €
House in Algarve, Portugal
302 sq.m43
Residence
In the village of the development you can find 12 villas, all of them with distinct areas with a central courtyard in common. All its construction and development was thought of in the harmonization between the interior and exteriore villas are totally independent, their large lots have areas ranging from 1700m2 to 3300m2 and divisions of 3 to 7...
Mercury Group
966 100 €
Flat in Algarve, Portugal
152 sq.m32
Residence
The development consists of 76 apartments, 31 non-tourist villas, 350 tourist units and the 5-star hotel with 76 addition, it is complemented by all services and infrastructures such as golf courses, outdoor activities, restaurants and bars, conference and events center, spa, outdoor and indoor experiences, sports facilities, programs and...
Mercury Group
450 000 €
Flat on Madeira, Portugal
115 sq.m22
For sale a two-bedroom apartment in a new building in the Virtudes area of Funchal.
This apartment is located on the third floor of Block B and represents a modern architectural composition with thoughtfully designed interiors filled with natural light.
The building is constructed from high-quality materials and provides all the necessary...
Mercury Group
600 000 €
Flat on Madeira, Portugal
21
Residence
Choosing this development is choosing the city of Funchal and one of its most emblematic blocks. Here, the history of Madeira joins sophistication and modernity, overlooking the Atlantic and half walls with the peculiarities of a city with 6 centuries of venture is a unique project. From the old house, through more classic apartments to the most...
Mercury Group
365 000 €
Flat in Lisbon, Portugal
49 sq.m111
Online Viewing
Introducing PRATA Riverside Village, a unique opportunity to live in a landmark destination in Lisbon. Situated along the banks of the Tejo River, PRATA Riverside Village represents the epitome of quality living in Lisbon. The developer has announced the commencement of construction for the new (and final) Art block within the complex, offering...
Spanish banking rules are very similar to Portugal. And similarly to the Portuguese market, do not forget to add unforeseen circumstances to the contract. You can also use the broker service to get into details and requirements, the price is usually very mild. The average cost is 500 euro.
