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Choosing a place to buy property in Europe
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BalanceLife Offline
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Choosing a place to buy property in Europe
Hi,

I am thinking of taking advantage of the low borrowing interest rates of Europe to buy a property in Europe. I am open to any place to Europe and the criteria is

1) Good game location
2) Easily accessible by flight
3) Property uptrend in the next decade
[strike out]4) Preferably near to beach[strike out]

Perhaps a 200-300K apartment where I can take a loan and payout. The downside is that because I will probably not in the location so I plan to rent out long term to tenants signing a yearly or two years contract.

Any advice appreciated.
(This post was last modified: 09-18-2019 08:04 AM by BalanceLife.)
09-18-2019 07:57 AM
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corradini Offline
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RE: Choosing a place to buy property in Europe
Getting a loan will be probably difficult, if you are planning to finance the apartment in the country where the property is located. The problem in most cases is the justification of income within another country. One option is to cover the loan with a domestic property within your resident country (if you have one). At least this is the situation in Germany. Consider that the interest rate within EE countries is at a totally different level (i.e. ~7% in Hungary).
(This post was last modified: 09-18-2019 10:17 AM by corradini.)
09-18-2019 10:16 AM
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355 Offline
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RE: Choosing a place to buy property in Europe
It should also be mentioned that in Germany prices of RE in attractive cities have tripled and in some cases even quadrupled in the past 10 year. If this is sustainable only time will tell, but I have my doubts when I look at the demographics and modest growth in wages here. My point is: the very low mortgage rates have already been priced in imo (again this only applies to Germany, I don't know about other countries).
09-18-2019 11:53 AM
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Tail Gunner Offline
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RE: Choosing a place to buy property in Europe
(09-18-2019 10:16 AM)corradini Wrote:  Getting a loan will be probably difficult, if you are planning to finance the apartment in the country where the property is located.

This chart cites bond rates, but it also provides a good idea of which countries have banks that might pay you to take out a mortgage.

Yes, pay you! Some banks in some countries are actually paying people to take out mortgages.

   


The Canary Islands might meet your criteria.
(This post was last modified: 09-18-2019 11:49 PM by Tail Gunner.)
09-18-2019 11:48 PM
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Troller Offline
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RE: Choosing a place to buy property in Europe
1) Good game location

This would probably be EE

2) Easily accessible by flight

Nearest european city is Reykjavik or Lisbon I believe.

3) Property uptrend in the next decade
[strike out]

Most of real estate is in a bubble.

4) Preferably near to beach[strike out]

Probably the Med then.

As for negative mortgage loans:

"Jyske Bank has had to do a lot of clarifying; there’s a widespread misconception that the bank is actually paying borrowers to take their money. First of all, the bank is not actually paying anyone; it is simply forgiving part of the loan each time a payment is made. A mortgage borrower is likely to end up paying Jyske back a little more than they borrowed, factoring in fees and charges associated with arranging the mortgage loan."

https://finance.yahoo.com/news/americans...ga9NQ53mal

Besides the cost of buying the property and taxes. You will need to spend money on a good real estate lawyer to do the property due diligence. Tax accountant to pay the property taxes and file your income. And property management company to deal with the tenants.

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09-19-2019 05:40 AM
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Mage Offline
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RE: Choosing a place to buy property in Europe
I have anecdotal evidence of Bulgaria being popular for property investment even among other, more richer EE countries. Have no clue if it is indeed a good idea.
09-19-2019 05:58 AM
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Salame Offline
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RE: Choosing a place to buy property in Europe
(09-18-2019 07:57 AM)BalanceLife Wrote:  Perhaps a 200-300K apartment where I can take a loan and payout.
In every country, you need to have verification of local income source or local funds to prove that you're financially viable for a mortgage which isn't easy.

I'd buy a place in the Côte d'Azur or Ligurian Riviera if I had the money, you can find plenty of flats that are affordable at no more than 300€k but you won't be near the beach.
09-19-2019 08:11 AM
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BalanceLife Offline
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RE: Choosing a place to buy property in Europe
(09-19-2019 08:11 AM)Salame Wrote:  
(09-18-2019 07:57 AM)BalanceLife Wrote:  Perhaps a 200-300K apartment where I can take a loan and payout.
In every country, you need to have verification of local income source or local funds to prove that you're financially viable for a mortgage which isn't easy.

I'd buy a place in the Côte d'Azur or Ligurian Riviera if I had the money, you can find plenty of flats that are affordable at no more than 300€k but you won't be near the beach.

Both places are indeed beauties, thanks.
09-19-2019 04:20 PM
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BalanceLife Offline
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RE: Choosing a place to buy property in Europe
(09-19-2019 05:40 AM)Troller Wrote:  1) Good game location

This would probably be EE

2) Easily accessible by flight

Nearest european city is Reykjavik or Lisbon I believe.

Iceland is way too cold. I love Lisbon but last trip there I just feel it’s a tourist bubble waiting to burst, but I could be wrong.
09-19-2019 04:22 PM
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BalanceLife Offline
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RE: Choosing a place to buy property in Europe
Does anyone have suggestions for Spanish cities?
09-19-2019 04:23 PM
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Troller Offline
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RE: Choosing a place to buy property in Europe
This is the biggest property listing Spanish site:

https://www.idealista.com/

Take a look.

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09-19-2019 06:38 PM
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BalanceLife Offline
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Tongue RE: Choosing a place to buy property in Europe
[Image: uWKcT9A.png]

Maybe Poland or Ukraine? Given that the rental yield seems to be good.

Anyone based there can attest to it?
09-22-2019 02:41 AM
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BalanceLife Offline
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RE: Choosing a place to buy property in Europe
(09-22-2019 02:41 AM)BalanceLife Wrote:  Maybe Poland or Ukraine? Given that the rental yield seems to be good.

Anyone based there can attest to it?

Looks like foreign nationals can't own properties in Poland, while in Ukraine we can own properties but not land.

If the rental is so damn expensive compared to GDP per capita, wouldn't rental took up a huge chunk of the salary.(ref:https://www.globalpropertyguide.com/news-ukraines-housing-market-remains-depressed-3789)
(This post was last modified: 09-22-2019 02:59 AM by BalanceLife.)
09-22-2019 02:49 AM
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Kid Twist Offline
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RE: Choosing a place to buy property in Europe
(09-19-2019 05:58 AM)Mage Wrote:  I have anecdotal evidence of Bulgaria being popular for property investment even among other, more richer EE countries. Have no clue if it is indeed a good idea.

It seems like over the last couple of years this is easily the most up and coming place. I wouldn't think they rank that low on the list for women, either. I've only been for a short time but there are always gems in slavic countries like this.
09-24-2019 08:11 AM
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Dark Pool Offline
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RE: Choosing a place to buy property in Europe
You have to examine overall trends in Eastern Europe to come up with a property matrix; given de-population, brain drain and ongoing urbanization, it means urban areas and coastal areas can be good ideas, but you're already behind trend in many of these places given massive influx of Western Tourists and investors to Eastern Europe. For example, the Montenegro ship has already sailed, and as the East continues to improve economically opportunities will only disappear, as well as the fact the EU continues to expand ever-eastward... Easy Jet flights seem to be going almost everywhere these days.

In reference to Bulgaria, which another poster mentioned: Bulgaria is a definite opportunity, but the ownership of property is largely confined to tourist locations and larger cities; like Sunny Beach, Varna and others. Bulgaria is hugely depopulating and if for example you wanted a property in a smaller town or Tier 2 city, you would have your choice of deals.

In Poland, Poles continue to return to the country with their high wages from Western locales, so I only see Poland improving more in the future. Poland would of been an awesome opportunity about 10 or so years ago.

Other places, like czechia, romania and hungary seem to be on everyone's radar screens.

Croatia too, would be an awesome place to invest in, but its a lot like montenegro given the recent explosion in property prices.

I'm of the firm belief that eastern germany is a value, relatively speaking to most of the rest of western europe given the economic disparity between east and west of germany.

Especially in the East (of europe) it can be harder to own property if a foreigner, the obvious way to get around this is a locally based company which allows you to circumvent these restrictions.

In some places, Balkans and other parts of eastern europe, state enterprises are still in the process of being privatized; so if you can play this game there are some real deals.

I take the pessimistic view on Ukraine, it is massively f***ed and given how screwed up the situation is there, I don't see much changing in the coming years.

But, we're leaving out Europe... some parts. Georgia, for example. Given recent positive press and increased tourism there, I think Georgia is becoming a great idea. Very pro-west country, increasing value of passport, lots of good reviews. Awesome food, wine, etc.
(This post was last modified: 09-24-2019 09:42 AM by Dark Pool.)
09-24-2019 09:38 AM
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Dilated Offline
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RE: Choosing a place to buy property in Europe
^Yes on Bulgaria!! If was moving to Europe (I might) to buy property it would be here.

Great value. Beautiful scenery. Clean food. Surprisingly cute women.

Cons:
People fleeing the country
Language hard as fuck to learn
Visa rules inconsistent and difficult to figure out
Seems difficult to make inroads culturally

Will continue to learn more about BG. Also considering drastically different countries- Mexico, Peru, Chile.
09-24-2019 05:58 PM
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Dilated Offline
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RE: Choosing a place to buy property in Europe
^Yes on Bulgaria!! If was moving to Europe (I might) to buy property it would be here.

Great value. Beautiful scenery. Clean food. Surprisingly cute women.

Cons:
People fleeing the country
Language hard as fuck to learn
Visa rules inconsistent and difficult to figure out
Seems difficult to make inroads culturally

Will continue to learn more about BG. Also considering drastically different countries- Mexico, Peru, Chile.
09-24-2019 05:59 PM
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Dark Pool Offline
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RE: Choosing a place to buy property in Europe
(09-24-2019 05:58 PM)Dilated Wrote:  ^Yes on Bulgaria!! If was moving to Europe (I might) to buy property it would be here.

Great value. Beautiful scenery. Clean food. Surprisingly cute women.

Cons:
People fleeing the country
Language hard as fuck to learn
Visa rules inconsistent and difficult to figure out
Seems difficult to make inroads culturally

Will continue to learn more about BG. Also considering drastically different countries- Mexico, Peru, Chile.

Yeah, nice country but rough around the edges. Huge coastline, compared to a place like Montenegro. Fastest depopulating country in the world right now. Lots of Bulgarians speak english though.
09-24-2019 06:09 PM
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