Purchasing Property Abroad with a Rent Cash-In Loan

21 September, 2015

It is not uncommon for financial advisors to nowadays suggest purchasing property abroad as an alternative investment to purchasing domestic property, or investing in the stocks and bonds market in Hong Kong.

For instance, many individuals in Hong Kong seek to purchase property in nations such as Canada, the United Kingdom, Japan, etc. However, with many financial institutions reducing the easiness in which one can avail a mortgage, or alternative lending options, it grows tough for an investor to purchase property abroad.

To pick the bones out of one example, let’s take a look at Japan’s property market, and discuss why investors in Hong Kong would want to delve into the Japanese housing market. One reason, as explained by John Lander (CNBC), who writes an article on this, is down to the Japanese Yen’s 18% drop against the U.S. dollar since 2014. Now, because the Hong Kong dollar is in effect pegged to the U.S. dollar, this corresponds to the fact that properties in Japan are now of greater value for Hong Kong investors.Wall E 5 In 1 Combo bady

Ku Swee Yong, an international property advisor at Century 21 Singapore, recently commented that he advises his clients, both in Singapore, and in Hong Kong, to:

Delve into the Japanese property market, due to its competitiveness, and attractive yields.

Japan’s history of growth, transparency, lawfulness, and proximity to other Asian economies makes investments in property in the region an extremely attractive one for investors. With that being said, Japan remains extremely cautious against a possible housing bubble, which is why the banking and credit system in Japan remains closed off to foreigners. Numerically, only two banks in Tokyo are willing to lend to foreigners, and that too often offering them mortgages worth less than 50% of the property’s value.

Despite that being said, let’s strip things down to their basics. There remain three traditionally viable options to secure financing for the purchase of property abroad:

• Remortgaging a property here to purchase overseas property. But, as we’ve discussed under our 2nd Mortgage vs. Rent Cash In article, that may not be the best idea due to better alternatives present.

• Borrowing money in Hong Kong to purchase property abroad. Likewise, we can take a look at the current mortgage situation in Hong Kong to know that lending institutions are wary of offering up mortgages, and as a result, your chances may be slim.

• Borrowing money abroad – but as we discussed above using Japan’s example, lending institutions are quite hesitant to offering up mortgages to foreigners.

You essentially can save for years to purchase a property overseas!

Essentially, this would leave you, as a prospective homebuyer overseas, with limited options to secure financing to purchase a property.

This is where Monexo steps in, and can assist you in fulfilling your need to purchase a property overseas at the right time.

Monexo’s Rent Cash-In product means that you, as a borrower, are able to collect an advance on your future rental income from a Hong Kong property, for a maximum of 48 months, and a value up to 1 million HKD. In this way, you’re able to obtain the required financing to purchase a home overseas, and grow your assets, while fulfilling your ambitions.

It’s as easy as four simple steps
Step by Step Guide

Here’s why Monexo works for you:
• Monexo’s Rent Cash-In loans are available for all Hong Kong property owners with rental income, subject to our screening procedures.

• Your loan application is processed swiftly, and disbursal is made to you as soon as your loan is fully funded.

• Monexo’s loans are on fixed interest, and a reducing balance basis, meaning they are more financially affordable.

• Calculate your savings using Monexo’s calculator here!

• On a month to month basis, you can use your rental income to effectively pay off the loan you take for the purchase of property abroad.

All in all, this post aimed to avail you to the opportunity that presents itself in the form of a rent cash-in loan obtained via a peer-to-peer lending marketplace that is Monexo.

Quite simply, with the four easy steps described above, you could become a homeowner in Japan, Canada, the United Kingdom, or the U.S.A – all with financing at extremely competitive interest rates, and efficient service!

Author: Sahil Mohnani @Monexo