It’s good at home and better somewhere else. How to solve the housing problem abroad and in which countries mortgages are not slavery? From the article you will learn in what country the past of the former owners of the house affects its price; about lifetime mortgages and how you can earn on it; about the conditions of the “American mortgage” not in America, where it is profitable to buy real estate and interesting facts about mortgages in each of these countries https://capital-invest-skiy.com/.
Japan – give me two
In the land of imperial palaces, housing prices are also imperial: the equivalent of $10,000 per square meter apartment in downtown Tokyo, and beyond – up to $5,000. To acquire such a palace is not for everyone, and the state is walking to meet, issuing affordable loans to the population. Owning your own house and land – part of the mentality of the Japanese. And still capital residents often rent houses and provincials buy them.
Features and characteristics of Japanese mortgage lending:
- Mortgage rates from 0.5% to 1.2% for 35 years.
- Mortgages are granted only in the national currency – yen, as it is impossible to calculate currency fluctuations in the long term.
Thriftiness, frugality, and a completely different culture of consumption distinguish Japanese residents from the norms adopted in Russia. They always have more savings than debts. The average family has about 12 million yen set aside, with only one spouse earning. The average salary in Tokyo is 367 thousand yen before taxes. Bankruptcy is excluded, and the banks are protected from risk.
An interesting fact: the realtor has no right to conceal from a potential buyer the fact of crimes or tragic incidents that occurred in an apartment or house. For example, the reputation of the home is tarnished, and drastically reduces the cost of housing, but this is such a way to save money. The price also depends on the service life – the house serves only 50 years: the standards of seismic resistance are constantly being improved. You won’t find any old buildings “with a story” here. When people move into a new house, they immediately start saving for renovation.
Switzerland – the mortgage of a lifetime
The land of bankers and watches. It ranks among the top five in terms of the high cost-of-living index. Many people are able to buy real estate only on credit: the price per square meter of housing in the capital center reaches 13,250 Swiss francs ($ 14,000), in the bedroom communities – 8,560 francs ($ 9,000).
Anyone can afford a mortgage:
- Attractive rate – 1.6% a year will not leave the able-bodied Swiss homeless. The risk of falling into debt is minimal. For some customers, the loan rate can be set below 1%.
- The first payment for the property is 10%, and after 10 years, exactly the same amount is paid.
- Interest is accrued not as we are accustomed to: not monthly, but quarterly.
An interesting fact: in Switzerland, it is advantageous to take out a mortgage life-long, that is, for life. But if you die, you will leave it as an inheritance. Even more interesting: you can pay during life only a small percentage, and the whole credit debt to bequeath to descendants. They can refuse to pay, then the property passes into the ownership of the bank and goes under the hammer. The house went up in value – the bank is obliged to pay the difference to the borrower. If the price goes down, the bank will foreclose. That’s how the world works, where no one will take someone else’s, but they won’t let go of theirs either.
The House the Finn Built
Finland is a country with a steady economic pulse, with no tachycardia or rhythm disruptions. It has virtually eliminated crime and corruption, and its infrastructure is in constant development. A country worthy of a bronze medal for standard of living and availability of mortgages:
- Mortgage rates are as low as 1.2% -1.4%.
- Loyal and flexible mortgage subsidies.
- The average working Finn is able to pay off the bank in about 7.5 years.
The price per square meter in the center of the capital is up to 7 000 €, outside it a little more democratic – 4 000 € per square meter, but rent in the future more expensive. That is why Finns are not eager to fledge from the parental nest. Here it is common to live in children’s homes until the age of 25-30. Especially if you fail the exams for the capital’s universities. University students in Helsinki have the privileges of the state program HOAS. This is a fund of housing in different areas of the city and the suburbs for students. A great opportunity to save on rent.
An interesting fact: the state helps Finns to acquire the first housing – enough to save 10% of the cost of cherished meters, and part of the interest is paid by the state. In Finland, subsidized interest on mortgages also receive those who build or buy their own home. It is called here real estate, and the apartment fund – housing stock. There is a difference. Both in terms of purchase and in the tax deduction – 4% versus 2%, respectively.
Slovakia – “American Mortgage”
Central point of Europe, a country with a mild climate and a high quality of life. A pearl or a diamond – whatever you find. Austria and Hungary, Poland, the Czech Republic and Ukraine are nicely neighboring it. Wherever you go among them, you will definitely end up in Slovakia, at least in transit. There are the biggest number of castles and palaces per capita in Europe. According to the website numbeo.com, Slovenia is among the twenty countries with the most favorable living conditions.
The apartment issue won’t spoil anyone here:
- The interest rate on a mortgage loan is 1.72 percent.
- If you prefer to live in the sleeping areas of the city, the prices are about this – 2 000 € per square meter.
Interesting features of mortgages in Slovakia: until 2017, it was easy to arrange the so-called “American mortgage”, and you don’t even have to be American. The borrower was given a loan that fully covered the cost of the property. Proof of income was not required. Now the process has become more complicated, and it is more difficult to obtain such a loan. The requirements for financial resources have changed – after the payment there should be not less than 5% of income. There is a tendency to gradually increase to 20%. Well, apartments now can not buy immediately – the term of this type of real estate is limited to 8 years.
Germany – no place for bankrupts
Germany is among the ten countries with the highest index of quality of life. Reliable banks that have not known bankruptcy since 1990, low inflation and high wages even after impressive deductions to the treasury. The German economy has slowed somewhat over the past two years, but remains resilient. IT and scientific technology start-ups, stability and a high quality of life are attracting skilled migrants, and the real estate market is overheating. The average price of real estate throughout Germany varies greatly.
Mortgage interest rates remain low: 1.89 percent to 2 percent per year.
It is predicted that the period of low interest rates is about to end, as real estate is steadily becoming more expensive.
A 70-square-meter apartment pays for itself in 20 years in every other neighborhood in Germany.
A resident of Berlin who wants to look for an apartment in the center will face a price of 5,600 euros per square meter. The bedroom communities loosen their grip a bit, settling for as little as 3,800 euros per square meter. A square meter in the center of “German Rome” is literally worth its weight in gold: about 10,000 euros and about 7,000 euros on some outskirts. Rent can be 10 times cheaper. Buying a house is nevertheless considered an attractive and traditionally profitable investment.
An interesting detail: The interest rate of the German bank depends directly on the income of the applicant for credit. The higher his income, the lower it is. The logic is there – the bank benefits from solvent clients. In addition, the bank requires you to open a deposit account to minimize the risks.
So, being an employed citizen of these countries, you can solve the housing problem and not spoil your karma. As for non-residents, the conditions for them are stricter. The ways to obtain a mortgage for a non-citizen are riddled with restrictions. In the vast majority of cases, they will require:
- A residence permit or permanent residence in the country;
- A foreign currency bank account;
- Official employment.
Or better yet, all at once.