Can property outside the EU be counted as equity?

  • Erstellt am 2021-01-19 06:58:36

Ideensucher

2021-01-19 11:12:31
  • #1
Thank you for the answers, they confirm my assumption.

I meant it as "security" for the bank, I will be more careful with the choice of words next time. Then apartment 2 will probably have to be sold in the medium term and the concrete gold will become equity.
 

Grundaus

2021-01-19 15:31:25
  • #2
Is there even a land registry office in China where mortgages can be registered and then possibly foreclosure can take place if payments are not made? If at all, a large international bank takes the apartments as collateral. However, effort and costs are likely to be high. What amount are we talking about for the new apartment and how high and secure is the income? If it is a new job or a different company, you can forget about it anyway. Do employer loans still exist?
 

Tassimat

2021-01-19 16:50:27
  • #3
I hardly believe that a German bank would be willing to enforce a foreclosure in China :D. No, these properties do not serve as collateral at all.

Rental income could certainly be counted as income by some banks if you can prove that it is regular and secure. But currently, you have no rental income: you live in one apartment yourself and the other apartment is vacant.
 

HarvSpec

2021-01-19 17:06:54
  • #4
Before you sell, you can first inquire about the conditions with low equity. You can also, as you write, speculate (not meant negatively) that the added value of apartment 2 in a few years will outweigh the bank's worse interest conditions.
 

Ideensucher

2021-01-20 01:38:27
  • #5

If you buy the apartment and need a bank loan, this is recorded at the land registry office.
This prevents you from selling the apartment without the bank's consent.
Once everything is paid off, you have the bank confirm it, you run to the land registry office with the document, and they remove the entry.
Moving within the company, but the tendency seems to be: contract limited to 1 year.
The boss would have liked to make it permanent right away, but the HR department said "we don't know him well enough" – even though I've been working here for quite a few years. So the question might only be hypothetical and the bank says "Come back in spring 20222."

Confirming rental income will certainly not be easy. Especially since 1-year contracts are common in China that are renegotiated every year aka "the landlord asks for 50 euros more every year."

Conditions without selling apartment 2 probably won't be great because then I would basically need 100% financing, my savings only suffice for a car and apartment furnishings. But asking doesn't cost anything.
In case of a real estate purchase, it will probably come down to selling apartment 2 and using the rental income from apartment 1 for an annual special repayment. That's not so bad after all.
 

HilfeHilfe

2021-01-20 05:39:39
  • #6
Just have it calculated what a sale would bring you. Whether you get much better conditions through the cash portion. Otherwise, rental income will be credited to you if you can prove it, preferably taxed. Rental income from abroad will probably be rather difficult, I think.

How does your income look? Abroad or Germany. That will probably be the crucial point.
 

Similar topics
25.10.2008Is laundry drying prohibited in the new apartment?!10
22.05.2013Feng Shui in the apartment?11
15.11.2013Is financing with this income realistic? Experiences?11
16.02.2015Financing with equity15
17.06.2015Building a house without equity or how does one proceed?14
29.08.2016Can we afford this? Income / Investment / Equity131
30.08.2016Construction financing 40,000€ equity, tied to a condominium29
06.10.2016Rented apartment as a substitute for equity capital11
27.05.2017Realistic or daydream? (Buying property without equity)95
28.04.2017Construction financing and equity15
09.07.2017First an apartment, then build a house?17
10.07.2017Building a house without equity with a lot of self-effort21
31.08.2017Feasibility of construction project. Equity capital 50,000 Euros23
17.12.2017Does the land value count as equity? Appointment at the main bank23
24.10.2018Decision aid: special repayment or saving equity for a single-family house?23
26.08.2019Consumer credit as equity39
17.09.2019Building a house without equity - is that possible?117
28.12.2019Financing a house without equity38
07.05.2021How long have you been saving equity for your house?245

Oben