REAL ESTATE INVESTMENT 2021
Financing your property acquisition
G uy Ah Hang , Manager MCB Private Banking , sheds more light on financing a property acquisition .
Should the buyer choose a local or foreign bank to finance his purchase ?
Financing the acquisition of your property through a bank other than the country where the asset is located is possible . However , certain conditions are imposed by credit institutions . Indeed , in order for a foreign bank to agree to finance such a purchase , a guarantee that can be secured within the country will be required . As the asset is located abroad , banks generally require the following guarantees : a provision of life insurance , deposited funds or bonds , or a mortgage on land-based assets . Thus , although rates may appear more attractive abroad , the constraints imposed may be more restrictive than financing through a local bank .
From a legal point of view , the first step before committing to a purchase is to be well informed about the framework prevailing in the country of acquisition concerning real estate , its financing and , more specifically , the purchase of a home by a foreign resident , non-resident or investor . It should be noted that the purchase regulations , inheritance tax , partition tax or co-ownership legislation may be completely different from the provisions applicable in Mauritius . Thus , it is recommended to take into account the prevailing rules on repatriation or capital transfer in case of resale .
Loan requirements
“ We can finance foreign buyers up to 70 % of the total cost of the property , after a 30 % deposit by the client . However , we handle each application on a case-by-case basis to ensure that the client receives a tailor-made service that addresses their specific requirements and needs . “
Jaysen Nundoosingh Corporate and International Banking , Absa Bank
“ Funds transferred to Mauritius for the purpose of acquiring a property are secured at all stages of the process . This is what the KYC procedures aim to ensure , which are rigorously applied by the country ’ s financial institutions . “
Guy Ah Hang Manager MCB Private Banking
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