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Post by littlewing on Oct 25, 2005 13:01:52 GMT 1
When purchasing a property in Croatia, is it easy to get a loan from the bank and what does it involve.
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Post by irac on Oct 29, 2005 6:17:49 GMT 1
Near impossible unless you hold a local passport. Though once you buy, and if you've a business here, you can, eventually, be eligible for credit from the bank, for example for tourist purposes.
Sorry to be a bad news bearer, but maybe someone will know better.
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Post by Carol on Oct 29, 2005 17:17:28 GMT 1
I can add a little bit more info, but I'm afraid I can't offer any more hope. If you go to a Croatian bank, (or a foreign owned one with a presence in Croatia), then they will say that they won't loan to foreigners, but they will loan to Croatian companies. However, they want to see at least 2 or 3 years profitable accounts. So if you started today, and managed to make a profit in 2006 (unlikely), 2007 (very likely), then you would be able to apply for a mortgage around April 2008.
The other option I explored was to go to a foreign bank based outside Croatia. The UK has a sophisticated well developed economy so i tried there. The banks there explained that they do loan on non-UK property, but not Croatia. The reason is that in places like France and Spain there are huge numbers of foreigners buying property, in Croatia there are not huge numbers. However the cost of investigating all the risks and legislation is the same for both. So Croatia would not be profitable for them.
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Post by mark2 on Oct 29, 2005 17:31:01 GMT 1
Yep! that's about the top and bottom of it, it's gotta be cash, cash, cash if you are from the UK. The irony is after EU entry every bank and back-street loan shark will be lending to buy here. By the way, I have heard of an Austrian bank who will lend to foreigners but the surveyors and valuers have to fly in to appraise the house (at your expense) sounds like a free holiday to me. My humble advice is remortgage, if you can, for the purposes of home improvements then spend the money on a house in Croatia.
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