Work Abroad but earn in USD

Monday, February 28, 2005

International Mortgage Loans… The USA Is Way Behind

For those of us moving abroad who don’t have a huge amount of cash to spend on a house or apartment, the next idea is usually to look for a loan. Unfortunately, in Argentina, the banks have little interest in loaning to their own citizens, let alone foreign nationals. The only real choice for expatriates moving to Argentina is to get a loan from your home country.

If you go to Google and type in “international loan” or “international mortgage” you will come up with a ton of options for UK expatriates. You get whole lot of nothing for the US market. I don’t remember the exact figure, but I do recall there being something like 2-3 million Americans living abroad. I wonder then why no banks in the USA are willing to lend to expatriates to buy foreign properties? It seems the market is big enough. I’d be willing to accept a 10% interest rate abroad. I understand it would be a higher risk loan for the bank.

Still, you get nothing at all when it comes to foreign mortgage loans. Its really annoying, since it’ll limit me to renting until I can save up the funds to pay cash for a nice house or apartment. At least the low cost of living will help me with the saving part. If I was going to be living in the US and had pay 100% cash to buy a place, I’d probably be saving for 15 years. Maybe it’ll take 4-5 years of saving in Argentina.

If there’s a banker out there who wants to rake in the dough with a high interest loan, feel free to contact me. I wouldn’t think of ever paying 10% on a mortgage loan in the USA, but I will pay it to get a loan for a property in Argentina. I have perfect credit and I’ve never missed a payment in my life. I imagine many expatriates are in the same boat as I am – good credit, enough savings to make a very large down payment, but not enough cash to buy a place outright. Maybe someone out there knows someone who wants to make some money on expatriate loans. If so, please let me know so I can send them some business.



Blogger ABA said...

This is a good and really interesting topic. Most people think that the system around the world is exactly like it is in the USA. Americans for the most part are very sheltered. I believe something like only 19% of Americans actually have a passport. Very sad.

I noticed the same phenomenon as you did. It's strange here buying an apartment or house and having to pay CASH. No matter how many times I do always feels strange. The funny thing is if I lived in the USA, I could take just one owned apartment and leverage it and buy probably 5 other apartments.

There are little options. I do believe conventional type mortgages will come into the picture here in Argentina. When it does, property rates are going to explode, so try to buy before that. Even if you have to go the route of getting a loan from family or friends or even tapping into your retirement savings. I did that (even though people told me I was crazy and I had to pay penalties). I was right and they were wrong. You wanna know the funny thing?? Now, those same people that told me not to do it or asking for my consulting to purchase property here.

Always funny how things work out. I'm actually in the midst of putting together a business plan and a corporation that deals with what you are talking about. Not just for expats though. For the everyday local here as well that wants to purchase a home, apartment or a taxi.

The way I envision it is that the title will be structured in the name of the SRL (corporation) until the note is paid off. Of course, it will be essential to deal with excellent attorneys but it sounds like you already are working with great immigration attorneys.

The going rate here is 10% - 12% per year for a mortgage. I do know locals who have received one. Most of them are making decent money and are professionals. I would think that you could qualify for one after you are living here at least a full year. When you get to town, email me. I have excellent contacts at banks and financial institutions here and also investors.

My master plan is matching up buyers and investors willing to loan the money and taking part of the % of the loan. I believe it to be a solid business plan. People always are asking me why I am so generous with telling my plans? Aren't I afraid of competition? The simple answer is that everyone and their brother can try to do business. Everyone has great ideas. The truth is that the majority never follow through on them. Here is South America, everyone wants to make a lot of money but they don't want to invest one penny in the pursuit of making that money. Most foreigners don't even know where to begin.

El Expatriado, look me up when you get to Argentina. I've started a successful corporation that is making money. You know from your experience with the visa process, it's all in who you know down here. A good person with the right connections that knows how the system works is worth it's weight in gold here. Sure, it might be expensive but it's worth the money to know you won't get conned, lied to or cheated.

Hope to meet you soon.


5/13/2005 09:02:00 AM  
Blogger ceb said...

Hi Mike,

I plan to move to Argentina at the end of this year and have starting the process of buying property down there.

Have you been able to implement your idea of starting a financial services corporation that loans money for mortgages and other businesses in Argentina? If so, I would like to talk to you.


7/02/2005 02:47:00 AM  
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7/19/2007 11:48:00 PM  
Anonymous Lots for sale in Costa Rica said...

Great article!!!It is starting now, I can see that more people is buying homes because prices are lower and they are seeing a recovery in the economy

5/20/2010 06:39:00 PM  
Anonymous kenneth said...

Although the mortgage process in other countries is similar to the process in the United States, language, cultural and legal issues can make it very complex. We at International Mortgage Loans work hard to simplify the process for our clients. We take you from application to closing seamlessly. Whether you want real estate financing internationally or in the United States, we work for you and it is our job to provide the loan that best meets your needs.

11/19/2010 08:04:00 AM  
Anonymous Expat Home Loan said...

I have to agree with you. This doesn't make much sense to me at all. I think the best plan is to move closer to work and start paying off that debt. Later down the road they can look into taking on the expenses of buying a house.

7/20/2011 02:22:00 AM  

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